Starting a business in South Korea can open doors to one of Asia’s most dynamic economies.
This guide walks you through company formation in Korea, including legal structures, registration process, required documents, and costs.
Whether you’re a foreign entrepreneur, startup founder, or corporate investor, this post will help you set up a compliant and successful business.
Table of contents
Open Table of contents
Choosing the Right Corporate Structure
Before incorporation, select the most suitable legal entity:
| Structure | Key Features | Capital | Requirements |
|---|---|---|---|
| Private Limited Company (Yuhan-hoesa) | Most common for SMEs; flexible governance | No strict minimum but practical capital needed | ≥ 1 shareholder, foreign ownership allowed |
| Joint-Stock Company (Chusik-hoesa) | Preferred for larger ventures; potential to list | Higher capital & governance obligations | Board of directors, statutory auditor (if thresholds met) |
| Branch / Rep Office | Branch = extension of foreign HQ; Rep office = no profit-making | N/A | Limited activities allowed |
Tip: If you plan to raise capital, hire many employees, or go public, a Chusik-hoesa (Inc.) may be better long-term.
Legal & Regulatory Considerations
- Foreign Investment Promotion Act (FIPA): Filing required if foreign ownership ≥ 10% or certain industries.
- Sector-specific licensing: e.g., food, fintech, logistics, medical, etc.
- Tax obligations: Corporate tax (9–24%), VAT (10%), withholding tax.
- Employment & visa compliance: D-8 (Investor) visa or E-series work visa.
- IP Protection: Register trademarks and patents early to avoid conflicts.
Step-by-Step Company Formation Process
-
Name Check & Reservation
Verify availability with the Supreme Court registry. -
Prepare Documents
- Articles of Incorporation
- Passport copies of directors/shareholders
- Office lease agreement
- Proof of capital deposit (if required)
-
Deposit Capital
Open a temporary bank account and deposit paid-in capital. -
Register Company
File at the company registry, obtain Business Registration Number. -
Tax Registration
Register for VAT, corporate tax, and obtain a digital certificate. -
Open Corporate Bank Account
Transfer capital to a permanent account and set up accounting system. -
Apply for Licenses / Permits (if needed)
Import/export license, food service permit, etc. -
Post-Setup Compliance
Hire accountant, prepare annual reports, manage payroll & social insurance.
Estimated Time & Cost
| Step | Duration | Typical Cost |
|---|---|---|
| Preparation & documentation | 3–5 days | Minimal (notary fees) |
| Incorporation & registry filing | 3–7 business days | Registration fees + legal service |
| Tax registration & bank setup | 1–2 weeks | Accounting service fees |
| License applications | 2–6 weeks | Industry-specific |
Note: Costs vary by company type, capital, and service provider.
Tips for Foreign Entrepreneurs
- Work with a local bilingual legal advisor to avoid paperwork mistakes.
- Keep translated, notarized, or apostilled copies ready.
- Choose a real, verifiable Korean office address (virtual offices may be restricted).
- Consider long-term compliance (annual reports, audits).
- Understand cultural norms — relationship-building is important in Korean business.
FAQs
Can I own 100% of my company as a foreigner?
Yes, except for restricted industries like defense or media.
Is there a minimum capital requirement?
Generally no for LLCs, but at least ₩100M is recommended for investor visa eligibility.
How long does it take to start operations?
Typically 2–4 weeks, assuming no special licenses are required.
Why Work with Saemunan
At Saemunan Law Firm, we provide:
- Expert legal support for Korea company formation
- Step-by-step assistance with filings, banking, and permits
- Transparent pricing and timeline
- Post-incorporation compliance and tax advisory
📩 Contact us today for a free consultation and get your business in Korea started with confidence.