South Korea Company Incorporation
formation period
About 30 days of the date on which the object of investment has been paid in full.
An application for foreign-invested company formation is filed after receiving the certificate of business formation issued by the jurisdictional tax office.
Required documents (one copy each)
● Application form for formation of a foreign-invested enterprise (Refer to appendix)
● Certified copy of corporate formation (original copy)
● Copy of certificate of purchase/deposit of foreign currency
● Shareholder ledger
Upon submitting an application with the above documents attached, a foreign-invested company formation certificate shall be issued.
Enterprise Solution Case
5 Step Guide to Setting up a Business in Korea for Foreigners
Step 1: Check for Eligibility
First, foreigners can open a business in Korea if your visa permits them to. You can check out all the available visas in Korea here.
Step 2: Choose your Business Structure
Korea has many business structures, similar to western countries but with some important differences. Therefore I have provided a summary of the main types. Please contact us for more detailed information.
Step 3: set up Your Business
Next, you will need to set up your business in Korea. The requirements for LTDs and LLCs are complex and best explained by your chosen financial or legal professional.
Step 4: Bank Setup
Once you have completed your business set up, you can set up your business bank account.
Preparation Stage
You will likely need the following documents:
● Passport
● ARC Card
● Office lease agreement
● House contract (if any)
● Job contract or sales/business agreement with a client
● Your home country tax number, like SSN / tax file number, etc., (if any)
● (For Americans Only): You will need to fill out FBAR/FATCA form provided by the bank
● Be ready to download the bank app
Step 5: Basic Ongoing Obligations
Once you set up a business in Korea, whether it is profitable or not, you must be tax compliant. Tax compliance means the following tax returns must be submitted on time. Filing your taxes in Korea for foreigners can be a complicated process. Therefore, it is highly recommended you have a tax accountant you can trust.
● Vat filing
● Due every three months for Corporations
● Due every six months for Sole-proprietorships (Individual Companies)
● Yearly income tax returns
● Due March 31st for Corporations
● Due May 31st for sole-proprietors and contractors