Currency
South Korean Won (KRW)
Payroll Frequency
Monthly
Employer Taxes
10.67% - 29.17%
Aadmi streamlines South Korean company formation services and makes it easy and trouble-free. The procedure is to register a company with the Supreme Court’s Corporate Registry and the National Tax Service, selecting the appropriate structure (sole trader, partnership, or limited company), and being compliant with all South Korean business laws. A limited company is chosen by most entrepreneurs in South Korea for its reputation, ease of change, and friendly foreign investment policies.
With our professional assistance, establishing your company in South Korea is hassle-free, keeping you compliant and focused on expansion.
A South Korean Limited Company, also referred to as a “Chusik Hoesa” (joint-stock company), is a privately held business organization regarded as an independent legal entity on incorporation. One director and one shareholder are the minimum to establish it. Shareholders are liable for their capital contributions only. Whereas shares cannot be traded publicly by private companies, larger public companies can trade shares once listed at the Korea Exchange.
Foreign businesses operating abroad can establish a branch in South Korea. A branch is not an independent legal body from its parent firm and is governed by the laws of South Korea for the conduct of business. The parent firm has full responsibility for the obligations and liabilities of the branch.
Foreign investors can also establish a partnership with Korean entities. Partnerships are shared ownership and management where all the partners bear the responsibility for profits, losses, liabilities, and operations. Foreign enterprises can utilize Korean partners’ established networks, industry knowledge, and local market understanding, which makes this model favorable for shared risk management and local integration.
There is no minimum paid-up capital in South Korea to form a limited company. Practical capital contributions are usually necessary to finance the business’s operational requirements.
100% foreign ownership is allowed by South Korea in the majority of industries. Once registered as a domestic company, it then comes under the South Korean laws and regulations like any other Korean firm.
A local resident director is not required by South Korean law. A foreigner can be the sole director of a company.
No statutory requirement exists for appointing a corporate secretary. If appointed, no restriction exists in terms of nationality or residence.
A South Korean local office address registered at the time of incorporation is required. It should be able to receive mail and serve as the official registered office.
What Company Incorporation Documents are to be filed?
In contrast to some nations, there is no name reservation procedure required in South Korea. The suggested name is filed when incorporating and cannot be a replica of an already registered name. There is a facility for name search through the online corporate registration portal of the Supreme Court.
Company registration in South Korea normally utilizes these procedures:
File Articles of Incorporation, capital payment certificate, a business plan, identification documents, office lease agreement, and other supportive documents with the concerned authorities.
The Legal Registry Office of the Supreme Court oversees company registrations. A business registration certificate, required for business operation, is issued by the National Tax Service (NTS).
Corporate bank account opening in South Korea is a very important post-incorporation activity. It usually involves:
Banks might insist on visits and other KYC paperwork. Well-known banks are Shinhan Bank, Kookmin Bank, Woori Bank, and Hana Bank.
The national tax agency of South Korea that collects corporate income tax, VAT, payroll taxes, and monitors tax compliance. Every business is required to register with the NTS within 20 days of opening.
Enterprises with a turnover of over KRW 30 million (around USD 22,000) are required to register for VAT. VAT returns are submitted quarterly or semiannually, depending on the type of business.
Employers deduct and remit withholding taxes from employees, including:
All employers need to register their employees in the four compulsory social insurance programs:
Employers in South Korea need to have a retirement pension plan in place or offer severance pay that is no less than 30 days’ average wage per year of employment. Employers are required to register the retirement plan with the Ministry of Employment and Labor.
2026
2027
