Incorporation
Doing business in Korea starts with establishing a local corporate entity.
Establishing a legal corporate entity in Korea is the first step to doing business in Korea. The following is the table of comparison for the type of business forms for foreign entrepreneurs and investors doing business in Korea.
Joint Stock Company or Limited Liability Company (LLC) |
Branch Office | Liaison Office | |
---|---|---|---|
Type | Separate Entity | Part of Parent Company | Part of Parent Company |
Director | At least 1 director regardless of nationality | At least 1 representative regardless of nationality | At least 1 representative regardless of nationality |
Shareholder | A foreign individual or corporation can own 100% of shares | N/A | N/A |
Capital Investment | No requirement * If you would like to register your company as a foreign direct invested enterprise, a minimum of 100m won investment is required. (usually for D-8 visa purpose) |
N/A | N/A |
Accounting | Required | Required | N/A |
VAT (10%) Filing | Required regardless of revenue size | Required regardless of revenue size | N/A |
Audit Requirement | Only when exceeded certain criteria | Only when exceeded certain criteria | N/A |
Business Activity | No limitation | Limited to Parent company’s activity | Revenue generation is not allowed. Costs center only. |
Timeline for registration | 3 weeks | 3 weeks | 3 weeks |
Required documents | 1. Application form 2. Information of director and shareholder 3. Resolutions (prepared by Pearson) 4. Tenancy Agreement |
1. Application form 2. Information of parent company 3. Resolutions (prepared by Pearson) 4. Tenancy Agreement |
1. Application form 2. Information of parent company 3. Resolutions (prepared by Pearson) 4. Tenancy Agreement |
Can apply for | D-8 visa | D-7 visa | D-7 visa |
Incorporation Process
Each step requires different set of documents and registration method. When all the documents are prepared, incorporation and acquisition of business license take around 7-21 days.
However, there are also other types of legal entities and corporations that a foreigner can establish to do business in Korea. We provide customized services for each different case of incorporation. The following is the list of incorporation services that we provide.
For more information on setting up a business entity in Korea, you may download our A Guide to Doing Business in Korea at the bottom of this page. You can also refer to our Insights section for more detailed information for each step.