South Korea is where tradition meets technology, a country where innovation isn’t just a buzzword, but a daily reality. With a hyper-connected digital infrastructure, a thriving startup ecosystem, and strong government support for new ventures, Korea has emerged as a strategic base for ambitious entrepreneurs.
If you’re considering expansion into Asia, registering a company in Korea could be exactly the opportunity you’re seeking.
Why Start a Business in South Korea?
- Advanced economy with GDP exceeding $1.6 trillion
- Strong government support for foreign investment and innovation
- Thriving startup ecosystem with access to venture capital and global markets
- Strategic location in Northeast Asia, connecting China, Japan, and Southeast Asia
Entering a New Market Requires More Than Vision
Expanding into a foreign market demands more than just ambition. It requires:
- The right legal structure
- Full compliance with local regulations
- A clear, actionable strategy
This guide will walk you through the step-by-step process of company registration in South Korea so your growth is sustainable and compliant.
Step-by-Step Business Registration in Korea
1. Choose the Right Business Entity
Your choice of entity impacts taxes, liability, and operations.
- LLC (Yuhan Hoesa) – Flexible, limited liability structure for SMEs
- Joint Stock Company (Chusik Hoesa) – Suitable for larger firms with shareholders
- Branch or Representative Office – For foreign companies establishing a local presence
2. Select and Register Your Business Name
- Must comply with Korean corporate naming rules
- Should reflect your brand identity
- Registered with the Corporate Registry
3. Draft Articles of Incorporation
Outlines your company’s mission, governance, and shareholder rights.
Must be notarized before submission.
4. Submit Incorporation Documents
Typically includes:
- Articles of Incorporation
- Proof of capital deposit
- ID documents (passport, ARC if applicable)
- Payment of registration fees
5. Obtain Necessary Business Licenses
Industry-specific requirements:
- Restaurants – Sanitation permits
- Tech companies – Sector-specific approvals
6. Register for Tax and Social Insurance
- Register with the National Tax Service (NTS)
- Enroll employees in National Pension, Health Insurance, Employment Insurance
7. Maintain Ongoing Compliance
- File annual reports
- Hold shareholder meetings (if applicable)
- Renew business licenses as needed
Additional Steps for Foreign-Owned LLCs
If you’re a foreign investor establishing an LLC:
- Notify a Foreign Exchange Bank (FEB) of your investment
- Deposit capital into a temporary Korean bank account
- Register with the Korean court system
- Complete tax registration
- Open a permanent corporate bank account
- Apply for Foreign Direct Investment (FDI) status within 30 days of capital deposit
Which Business Entity Is Right for You?
| Entity Type | Key Features | Best For |
|---|---|---|
| LLC (Yuhan Hoesa) | Limited liability, flexibility | SMEs |
| Joint Stock Company (Chusik Hoesa) | Transparent, shareholder-driven | Larger enterprises |
| General Partnership | Unlimited liability | Close professional groups |
| Limited Partnership | Combines investors & managers | Co-investment ventures |
| Branch Office | Operates under foreign parent | Companies expanding operations |
| Representative Office | Market research only | Non-revenue operations |
Before You Begin: What You’ll Need
- Capital investment (varies by industry)
- Business plan with clear strategy
- Legal documents (passport, ID, ARC if applicable)
- Registered address (physical or approved virtual office)
Your Partner for Korea Company Setup
Starting a business abroad can be overwhelming — but you don’t have to do it alone.
At Pearson & Partners Korea, we:
- Simplify the incorporation process
- Ensure full legal and tax compliance
- Connect you to local partners and opportunities
📞 Ready to register your company in Korea?
Schedule your consultation today and start your journey to success.
Frequently Asked Questions (FAQ)
1. Can a foreigner start a company in Korea?
Yes. Foreigners can own and operate businesses in Korea, either as sole proprietors, through an LLC, or other legal entities, subject to meeting capital and compliance requirements.
2. How long does it take to register a company in Korea?
Typically 2–4 weeks, depending on the entity type, documentation readiness, and any additional licensing required.
3. Can I register a company in Korea without being physically present?
All steps do not require the physical presence of both directors or shareholders, the POA allows us to do all of the steps on your behalf.
4. Do I need a Korean partner to start a business in Korea?
No, foreign investors can own 100% of a Korean entity in most industries, except for restricted sectors like defense, media, or certain agriculture.
