Quick answer
A foreigner or overseas company can own 100% of a Korean company in most industries. Registration runs in this order: choose the entity, prepare shareholder documents, file the foreign investment (FDI) notification, pay in the capital, sign or notarize the articles, register at the court registry and pay registration tax, then register with the tax office. There is no statutory minimum share capital, but FDI status requires at least KRW 100 million and a 10% voting stake. Once parent-company documents are ready, the Korean side usually takes about two to four weeks.
This page is the full process in one place, written for founders and overseas companies setting up in Korea. Every legal threshold below links to the statute it comes from. Reviewed by a Korean attorney on 10 October 2026.
Who this guide is for
- Overseas companies setting up a Korean subsidiary to sell, hire or sign contracts locally.
- Foreign individual founders incorporating a startup or trading company, often together with a D-8 investor visa.
- Teams comparing options before choosing between a subsidiary, a branch and an employer of record.
If you only need to research the market and will not earn revenue in Korea, a liaison office may be enough. Compare the three set-ups in subsidiary vs branch vs liaison office.
Step 0: Choose the vehicle
| Vehicle | Korean name | Liability | Typical use | Notes |
|---|---|---|---|---|
| Stock company | Chusik Hoesa (주식회사) | Limited | Default for subsidiaries and anyone planning to raise money or add shareholders | Board/director structure, shares freely transferable |
| Limited company | Yuhan Hoesa (유한회사) | Limited | Closely held subsidiaries wanting lighter governance | Often translated “LLC” — see Yuhan Hoesa setup |
| Limited liability company | Yuhan Chaegim Hoesa (유한책임회사) | Limited | Small partnerships-style ventures | Also called “LLC” in English, but a different legal form |
| Branch | 외국회사 지점 | Parent is liable | Overseas company trading in Korea without a separate entity | Not a Korean company; foreign-exchange reporting applies |
| Liaison office | 연락사무소 | Parent is liable | Market research and support only | Cannot earn revenue |
Most foreign investors choose a Chusik Hoesa. If you are weighing it against a Yuhan Hoesa, read Chusik Hoesa vs Yuhan Hoesa. Do not assume “LLC” in an English document means the same Korean form — two different Korean entities are both translated that way.
The registration process, step by step
1. Settle the name, purpose and people
- Company name. Korean law bars registering a name identical to one already registered for the same type of business in the same city or county (Commercial Registration Act, Art. 29). There is no separate name-reservation filing; the check is done against the registry before filing.
- Business purposes. List every activity you will carry on. Regulated activities (food import, travel, education, finance and others) need licences on top of registration.
- Representative director and directors. A non-resident can serve. The registered office address must be in Korea.
2. Prepare shareholder documents abroad
What the court and the bank need depends on who the shareholder is:
| Shareholder | Core documents | Authentication |
|---|---|---|
| Individual | Passport, signature or seal certificate, power of attorney | Notarization plus apostille (or consular legalization) |
| Overseas company | Certificate of incorporation or good standing, board resolution approving the investment and appointing a signatory, power of attorney | Notarization plus apostille (or consular legalization) |
Countries that are parties to the Apostille Convention use an apostille; others need consular legalization at the Korean embassy, which takes longer. This step is usually the slowest part of the whole project. See apostille and notarization requirements.
3. File the foreign investment (FDI) notification
A foreign investment under the Foreign Investment Promotion Act is an investment of KRW 100 million or more in which the foreigner holds 10% or more of the voting shares (or appoints an officer) (Enforcement Decree, Art. 2(2)). It must be notified in advance (Act, Art. 5(1)), in practice at a foreign exchange bank or KOTRA, before the money is sent.
FDI status matters because it is the basis for the D-8 visa, for clean repatriation of dividends and capital, and for certain tax and location incentives. If you invest less than KRW 100 million, you can still form a company, but it will not be a registered foreign-invested company.
4. Pay in the capital
The investor remits the capital from abroad to the Korean account designated for the company being formed. The bank then issues the capital certificate the court needs. For a company with capital under KRW 1 billion formed by its promoters, a bank balance certificate can be used instead of a custody certificate (Commercial Act, Art. 318(3)).
Korean company law sets no minimum share capital. The KRW 100 million figure people quote comes from FDI rules and D-8 practice, not from the Commercial Act.
5. Adopt the articles of incorporation
Articles take effect when notarized. The exception: for a company with capital under KRW 1 billion formed by its promoters, the articles take effect once every promoter signs or seals them — no notarization (Commercial Act, Art. 292). Most first subsidiaries fall within this exception.
6. Register at the court registry and pay registration tax
The incorporation is filed with the commercial registry of the district court for the registered office. On filing you pay:
- Registration license tax: 0.4% of the paid-in capital, minimum KRW 112,500 (Local Tax Act, Art. 28(1)(6)).
- Tripled rate in large cities: a company set up in Seoul or another overcrowding-control area of the capital region pays three times the rate, so the minimum becomes KRW 337,500 (Art. 28(2)). Capital increases within five years of incorporation are taxed the same way.
- Local education tax: 20% of the registration license tax (Local Tax Act, Art. 151(1)(2)).
- A small court filing fee.
The company legally exists from registration. Order the corporate seal and seal certificate at the same time — Korean banks and agencies still rely on them (corporate seal guide).
7. Register with the tax office and as a foreign-invested company
- Business registration (NTS): within 20 days of starting business; you may apply earlier (VAT Act, Art. 8(1)). The business registration number is what you need to invoice, hire and open the operating account. Details in business registration after incorporation.
- Foreign-invested company registration: within 60 days after the capital is paid in (Enforcement Decree, Art. 27(1)). Older guides say 30 days; that is out of date.
8. Open the corporate bank account and prepare to hire
Banks run their own KYC: beneficial owners, source of funds, business substance and often an in-person meeting with the representative. Prepare for it early with the corporate bank account requirements. Before your first hire, set up payroll withholding and the four social insurances. Your first-quarter checklist is in the first 90 days after incorporation.
How much does Korea company registration cost?
Separate four buckets: statutory charges, professional fees, the share capital itself (which stays in the company) and operating costs.
Statutory charges on registration, using the formula above:
| Paid-in capital | Outside large-city area | Seoul / overcrowding-control area |
|---|---|---|
| KRW 10 million | 112,500 + 22,500 = KRW 135,000 | 337,500 + 67,500 = KRW 405,000 |
| KRW 100 million | 400,000 + 80,000 = KRW 480,000 | 1,200,000 + 240,000 = KRW 1,440,000 |
| KRW 300 million | 1,200,000 + 240,000 = KRW 1,440,000 | 3,600,000 + 720,000 = KRW 4,320,000 |
Run your own numbers in the Korea incorporation cost calculator. Figures are registration license tax plus local education tax, before the court filing fee, notary and apostille costs abroad. Professional fees are a fixed-fee quote after scoping, because they depend on the shareholder structure, documents and licences involved. More detail: Korea company formation costs.
How long does it take?
| Phase | What drives the time |
|---|---|
| Shareholder documents abroad | Notary and apostille availability; consular legalization takes longer |
| FDI notification and remittance | Bank review and the international transfer |
| Court registration | Completeness of the filing |
| Tax registration and bank account | Tax office review; bank KYC and the representative’s availability |
Once the overseas documents are signed and apostilled, the Korean steps typically take about two to four weeks. Licensed businesses take longer.
Do I need to visit Korea?
Usually not for incorporation itself: documents can be signed abroad and filed in Korea under a power of attorney. The bank account is the step most likely to need the representative in person. See forming a Korean company without visiting.
Common mistakes
- Sending money before the FDI notification. Capital that arrives first may not count as foreign investment.
- Investing just under KRW 100 million and then needing a D-8 visa or FDI benefits.
- Board resolutions that do not name the signatory or the amount, so the court or bank rejects them.
- Choosing an “LLC” from an English template without checking which Korean form it maps to.
- Ignoring the large-city surcharge when budgeting, or registering in Seoul when the business could be elsewhere.
FAQ
Can a foreigner own 100% of a Korean company?
Yes, in most industries. A short list of sectors is closed or capped for foreign investment, so check your business purposes before filing.
Is KRW 100 million required to register a company in Korea?
No. Company law has no minimum share capital. KRW 100 million is the threshold for FDI status and is the practical starting point for the D-8 investor visa.
Do the articles of incorporation need to be notarized?
Not if the company is formed by its promoters with capital under KRW 1 billion — signatures of all promoters are enough. Larger companies, or companies formed with outside subscribers, need notarization.
What corporate tax rate applies after incorporation?
From 2026 the rates are 10% up to KRW 200 million of taxable income, 20% up to KRW 20 billion, 22% up to KRW 300 billion and 25% above that (Corporate Tax Act, Art. 55).
Should I use an employer of record instead?
If you only need one or two employees and no local contracting, an EOR can be faster. Once you sign customers, hold inventory or plan to scale, your own entity is usually the better long-term choice. Compare them in EOR vs direct hiring.
How SAEMUNAN Law Firm handles your registration
We run the whole sequence in English: entity and structure advice, the shareholder document list for your country, FDI notification, court registration, tax and foreign-invested company registration, and bank onboarding support. You get a fixed-fee quote after a short scoping call, and one Korean attorney is responsible from start to finish.
Next step: send us your inquiry with your shareholder structure and target date, or see the Korea company formation service.