Step-by-Step Guide to Korea Company Registration for Foreign Investors

Expanding your business into South Korea is an exciting opportunity, but registering a company as a foreign investor requires careful planning.
This step-by-step guide will walk you through each stage of the company formation process so you can enter the Korean market with confidence and avoid costly mistakes.

Table of contents

1. Choose the Right Legal Entity 🏢

Foreign investors typically choose from the following structures:

• Limited Liability Company (LLC / Yuhan Hoesa): Flexible and simple to manage, ideal for SMEs
• Joint Stock Company (JSC / Chusik Hoesa): Suitable for larger businesses, with stronger governance requirements
• Branch Office: Legally part of the parent company, but fully taxable in Korea
• Representative Office: For market research only — cannot generate revenue

Need help deciding? SMA Lawfirm can advise on LLC vs. JSC based on your goals and exit strategy.

2. Reserve and Register Your Business Name 📝

• Ensure the name complies with Korean corporate naming rules
• Reserve it with the Commercial Registry Office
• Choose a name that works well in both Korean and English

3. Prepare the Articles of Incorporation 📑

Your Articles of Incorporation define the company’s purpose, capital, shareholders, and directors.

• Must be notarized before submission
• A well-drafted AoI reduces future governance disputes

4. Deposit the Initial Capital 💰

• Open a temporary bank account in Korea
• Deposit capital and obtain confirmation from a Foreign Exchange Bank (FEB)
• For FDI recognition, at least ₩100 million (~USD 75,000) is recommended

5. File Incorporation Documents with the Court ⚖️

Submit the required documents to the district court, including:

• Articles of Incorporation
• Proof of capital deposit
• Identification documents (passports)
• Registration fees

Once approved, your company is officially incorporated.

6. Obtain a Business Registration Certificate (사업자등록증) 📄

Apply to the National Tax Service (NTS) within 20 days of incorporation.

• Required for tax filings, issuing invoices, and hiring staff
• Without this certificate, you cannot legally operate

7. Register for Taxes and Social Insurance 📊

To operate legally:

• Register for corporate income tax, VAT, and local taxes
• Enroll employees in:
  • National Pension Service
  • National Health Insurance
  • Employment Insurance

8. Set Up an Office and Bank Account 🏦

• Secure a registered office address (physical or virtual)
• Open a permanent corporate bank account after incorporation

Common Mistakes to Avoid ❌

• Not preparing documents in both Korean and English
• Failing to register under FDI rules — can complicate profit repatriation
• Delaying social insurance enrollment — can trigger fines and back payments

Final Thoughts: Simplifying the Process 🚀

Company registration in Korea is a structured but complex process for first-time investors.
With proper legal guidance, incorporation can be completed within weeks — enabling you to hire employees, sign contracts, and start operations faster.

At SMA Lawfirm, we handle the entire registration process:

• Entity selection & AoI drafting
• Capital deposit and FDI registration
• Court filings, tax registration, and social insurance setup
• Post-incorporation compliance support

📩 Ready to register your company in Korea?
Contact SMA Lawfirm and let us guide you through every step — from planning to successful launch.