Registering your company in South Korea is only the first step.
To stay legally active, avoid penalties, and build credibility with Korean authorities, companies must meet ongoing post-incorporation compliance obligations.
At SMA Lawfirm, we guide foreign entrepreneurs through every step — from registration to long-term compliance — so you can focus on growing your business.
Table of contents
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Business Registration Certificate (사업자등록증) 📄
Within 20 days after incorporation, all companies must obtain a Business Registration Certificate from the National Tax Service (NTS).
Why it matters: This document is required to issue tax invoices, hire staff, and legally conduct business in Korea.
Tax Compliance & Filings 📊
Companies must stay current with Korean tax obligations:
- Corporate Income Tax (CIT): Progressive rates from 9–24%, plus 10% local surtax (effective top ~26.4%)
- Value-Added Tax (VAT): 10% standard rate on most goods and services
Filing Deadlines:
| Tax Type | Deadline |
|---|---|
| Corporate Income Tax | Annually, within 3 months after fiscal year-end |
| VAT | Quarterly |
| Withholding Tax | Monthly or quarterly |
Tip: Maintain Korean GAAP-compliant accounting records to reduce audit risk.
See also: Korea Business Tax Guide
Social Insurance Enrollment 👥
All employees must be enrolled in the four mandatory social insurance programs:
- National Pension Service (NPS)
- National Health Insurance (NHIS)
- Employment Insurance
- Industrial Accident Compensation Insurance
Non-compliance can lead to fines, back payments, and reputational damage.
Annual General Meeting (AGM) & Reporting 🏢
- Joint Stock Companies (JSC): Must hold annual shareholder meetings and submit audited financial statements
- LLCs: Fewer formalities but still must keep internal minutes and records
Even small entities should document decisions and maintain proper governance to avoid future disputes.
Labor Law Compliance 📑
Korea enforces strict labor protections:
- 52-hour maximum workweek
- Severance Pay: One month’s wages per year of service (after one year)
- Termination Rules: Must follow statutory procedures for notice and cause
Tip: Consider HR outsourcing or Employer of Record (EOR) solutions if you lack internal HR capacity.
Industry-Specific Licenses 🔑
Certain industries (F&B, fintech, healthcare) require license renewal or regular reporting.
Always confirm whether your sector has ongoing compliance obligations beyond initial incorporation.
Ongoing Compliance Checklist ✅
- File all tax returns on time (CIT, VAT, withholding)
- Renew or update licenses as needed
- Maintain proper GAAP accounting records
- Hold AGMs (if JSC) and record minutes
- Keep payroll, HR, and social insurance in full compliance
Conclusion & SMA Support 🚀
Registering a company in Korea is just the beginning — staying compliant is the key to sustainable growth and protecting your investment.
At SMA Lawfirm, we offer:
- Tax and accounting compliance management
- HR and labor law advisory
- AGM and shareholder resolution preparation
- Ongoing legal and regulatory monitoring
📩 Need help with compliance?
Contact SMA Lawfirm today to keep your Korean business compliant, credible, and penalty-free.