- Knowledge
Advantages of Korean company registration
1. Tax advantages
Korean companies mainly pay value-added tax (10%) and corporate tax (10%), and the low tax rate reduces the tax burden on enterprises, bringing significant benefits to investors.
2. Business environment
Registering a company in South Korea with a wide range of business operations, covering industries such as trade, e-commerce, manufacturing, consulting, and financial asset holding. There are no restrictions on foreign companies opening accounts in Korean won or US dollars, and the China Korea Free Trade Agreement allows most imported goods to apply for tariff refunds, while some goods require licenses for import and export.
3. Brand Expansion
South Korea is located in the core of Northeast Asia, and registering a company helps brands expand their international influence. The China South Korea Free Trade Agreement strengthens cooperation in trade, investment, and other areas, and South Korea actively participates in global economic and trade cooperation to consolidate its international status.
4. Policy support
The South Korean government has introduced multiple supportive policies to attract foreign investment. Newly established enterprises can receive financial support, such as low interest loans, venue provision, as well as comprehensive services such as technical support and market promotion, to help enterprises smoothly carry out business.
1、 Types of Korean companies
01. Main types of companies
02. Special forms of foreign-funded enterprises
Local legal person: foreign-owned company/limited company, which shall comply with the Foreign Investment Promotion Law.
Liaison Office: For market research only, no profit-making activities are allowed.
2、 Core Requirements for Korean Company Registration
01. Basic requirements
Shareholders/Directors:
At least one shareholder (without nationality restrictions)
At least 1 resident director (may be a foreigner, but the residence address in South Korea is required)
Registered capital:
Co., Ltd.: 100 million Korean won (approximately 75000 US dollars)
Limited company: No minimum requirement (recommended 10 million Korean won)
Registered address: requires an actual office address in South Korea (virtual office can be rented)
02. Additional conditions for foreign investment
Foreign investment needs to be declared to Korean banks (FDI declaration), with a shareholding of ≥ 10% or an investment of ≥ 100 million Korean won.
For some industry restrictions (such as media and agriculture), the Foreigner Investment Permit shall be applied in advance.
3、 Korean company registration materials
（1） Basic materials
Copy of shareholder/director's passport (notarized and authenticated)
Articles of Association (정관)
Proof of registered capital remittance (foreign capital needs to be transferred through a Korean bank account)
Registered address lease contract or proof of use right
（2） Foreign special materials
Parent company business license (certified by the Korean embassy abroad)
Investment Plan (including explanation of funding sources)
Foreign Investment Declaration Form (외인투자신고서)
（3） Document compliance requirements
Non Korean documents need to be translated into Korean and notarized
Chinese documents need to be notarized by China → authenticated by the Ministry of Foreign Affairs → authenticated by the Korean Consulate General
4、 Korean company registration processCheng
Step 1: Pre review of company name (1-3 days)
Log in to the registration system of the Supreme Court of South Korea to check if the name is duplicate
Name format: Korean English (e.g. "주식회사 AICo Korea")
Step 2: Open a capital account (1 week)
Open a temporary account at Korean banks such as KEB Hana and Shinhan to transfer registered capital
Step 3: Notarize the company's articles of association (1 week)
Entrust the Korean Notary Office (공증사무소) to draft and notarize the articles of association
Step 4: Registration with the Legal Affairs Bureau (2-3 weeks)
Submit materials to the registration office of the local court (법동ー소)
Obtain the Legal Person Registration Book (법イ등ち부등본)
Step 5: Tax and Social Security Registration (1 week)
Tax bureau applies for tax number (사업동등록증)
Social security for registered employees of the National Pension Corporation
Step 6: Open an official bank account (1-2 weeks)
Submit the legal person registration book and seal certificate (イ감증명イ)
5、 Notes on Korean Company Registration
1. Tax compliance
Value added tax: Annual sales exceeding 48 million Korean won require registration for value-added tax (부가가치세)
Annual Audit: The company is required to submit an audit report (with an audit fee of approximately 5-10 million Korean won)
2. Employment Management
Hiring foreign employees requires applying for an E-7/E-9 visa
Compulsory participation in the four major insurances: National Pension, Health Insurance, Employment Insurance, and Work Injury Insurance
3. Common risks
False address: Using a virtual address requires filing, otherwise facing a fine of 10 million Korean won
Capital withdrawal: Registered capital must be retained for at least 1 year, and early withdrawal may be subject to investigation
6、 Common Problems in Korean Company Registration
Can foreigners control 100% of Korean companies?
Sure, except for restricted industries such as national defense and media, foreign investment can fully control the company/limited liability company.
Is registration requiredGoing to Korea in person?
No, you can entrust a Korean lawyer or agency to handle it, but opening a bank account requires the presence of a director (some banks support video interviews).
What is the annual maintenance cost after company registration?
Basic expenses:
Accounting and bookkeeping: approximately 600000 to 1.2 million Korean won per year
Address rental: approximately 3-6 million Korean won/year
Social security expenses: 8-10% of employee salary
What tax benefits can Korean companies enjoy?
Foreign investment discounts:
Manufacturing/technology industry: 50% corporate income tax exemption for the first 5 years
Economic Free Zones (such as Incheon): Exemption from local taxes for 7 years
