South Korea Company Registration Guide (公司注册指南) — Key Policies and Practical Steps for 2025

This guide summarizes how to register a company in South Korea in 2025, highlights recent policy directions and practical interpretations, and lays out step-by-step operations and Notes (precautions). It is written for foreign entrepreneurs, legal counsel and compliance officers who need a clear, actionable roadmap to form a legal entity in Korea.

Overview: What to expect in 2025

South Korea continues to position itself as an attractive destination for foreign direct investment, with ongoing administrative digitization, strengthened compliance for cross-border capital flows, and incentives targeted at technology, green energy and advanced manufacturing. Key practical points to keep in mind in 2025:

• Digital-first procedures: More steps can be completed online through the Supreme Court Registry Office (corporate registration) and National Tax Service portals, but some notarized foreign documents still require physical legalization or apostille.
• Foreign investment reporting remains mandatory to secure benefits and protections; late reporting can limit access to incentives.
• Employment and payroll compliance (four major social insurances and withholding tax) are actively enforced with heavier administrative fines for non-compliance.
• Local incentives (tax credits, grants, rent subsidies) are increasingly selective and tied to measurable outcomes (R&D, job creation).

Common Company Types (公司类型) — quick comparison

Step-by-step registration process (具体操作步骤)

1. Decide entity form and name

   Choose between 주식회사 (corporation), 유한회사 (LLC), branch or representative office. Verify name availability using the Supreme Court registry search.

2. Prepare founding documents

   Draft articles of incorporation, shareholders' agreement (if applicable), and deed of subscription. Foreign documents (e.g., power of attorney, board resolutions) usually need notarization and apostille or consular legalization and an official Korean translation.

3. Open a bank account and deposit capital

   Many banks require founders to visit Korea in person; some banks accept remote onboarding with certified documents. Keep remittance records — they are required for foreign investment filings.

4. Apply for corporate registration (법인 등기)

   File the registration with the local court registry. The process is increasingly available online, but a local representative or attorney often completes filings on behalf of foreign founders.

5. Register for tax and obtain business registration (사업자등록)

   Register with the National Tax Service (NTS) to receive a business registration number and VAT registration if applicable. Register as an employer for payroll withholding.

6. Foreign investment reporting

   If applicable, file a foreign investment report (through KOTRA/Invest Korea or the relevant portal) within the statutory time frame after funds are remitted to Korea to obtain investor protections and access incentives.

7. Register for social insurance and payroll

   Register employees for the four major social insurances (National Pension, National Health Insurance, Employment Insurance, Industrial Accident Compensation Insurance) and set up payroll withholding procedures.

8. Apply for visas and work permits

   Foreign staff who will work in Korea must secure appropriate visas (e.g., investment-related visas and professional work visas). Immigration rules are subject to change; consult immigration counsel early in the process.

9. Obtain sector-specific permits

   Depending on the business (financial services, food, medical devices, e-commerce), additional licenses or registrations may be required from ministries or local governments.

Key legal and tax compliance points

• Corporate governance: Maintain accurate minutes, shareholder registers and statutory books. Audits and reporting obligations vary by size.
• Tax reporting: Timely VAT, withholding and corporate income tax filings are essential. Use an experienced tax advisor to determine eligibility for incentives and treaty benefits.
• Transfer pricing: Cross-border related-party transactions must follow arm’s-length principles and proper documentation.
• Employment law: Compliance with labor contracts, minimum wage, working hours and the four major insurances is actively monitored.

Practical Notes (Precautions)

• Document legalization: Prepare notarized, apostilled and translated documents in advance; expect lead times for consular legalization in some jurisdictions.
• Local address requirement: A Korean address is typically needed for registration and licensing; virtual offices may be acceptable for some registrations but can limit eligibility for certain incentives.
• Bank relationships: Opening a corporate bank account can take longer for foreign-owned entities—plan for travel or use a service provider.
• Capital remittance proof: Maintain clear remittance trails and bank statements to support foreign investment filings and tax positions.
• Data privacy and e-commerce: If you handle personal data or operate online platforms, comply with Korea’s Personal Information Protection Act (PIPA) and related rules.
• Incentive conditions: Carefully read conditions for grants or tax credits — some require local job creation, R&D reporting, or achievement milestones.

Illustrative cases

Case 1 — Tech startup from Singapore

A founder chose a 주식회사 to attract venture capital. They notarized founding documents in Singapore, obtained apostilles, translated documents into Korean, and engaged local counsel to complete online corporate registration. Early engagement with a Korean bank enabled faster account opening and capital verification.

Case 2 — European manufacturer establishing an assembly JV

The foreign partner registered a branch initially to test supply chains, then converted to a 주식회사 once local procurement contacts were secured. They filed foreign investment notifications to qualify for customs and tariff facilitation.

Case 3 — E-commerce seller

A seller registering as an LLC used a local virtual office for registration and ensured VAT invoicing and customs compliance for cross-border shipments. They invested in PIPA-compliant customer data handling to avoid fines.

Where to get help

• Local corporate attorneys and certified public accountants (CPAs) for legal/tax structuring and filings.
• Official portals: Supreme Court Registry Office (company registry), National Tax Service (tax/business registration), Ministry of Justice / Korea Immigration Service (visas).
• Investment promotion agencies such as Invest Korea and local municipal investment offices for incentives.

For overseas company setup assistance and ongoing operational support, consider services like SailGlobal, which specializes in cross-border company formation and administrative support.

Final checklist before you launch

1. Ensure notarized and translated incorporations papers are complete.
2. Confirm bank account and capital deposit proof.
3. File corporate registration and business registration with NTS.
4. Submit foreign investment notification if applicable.
5. Register for payroll and social insurance before hiring.
6. Apply for visas for inbound staff and obtain any sector licenses.
7. Establish accounting and tax filing schedule with a local CPA.

Conclusion

Registering a company in South Korea in 2025 remains manageable with advance planning: decide on the optimal entity type, prepare legalized documents, secure bank relationships, comply with foreign investment reporting and employment obligations, and engage local advisors early. Policies continue to trend toward digital processing and outcome-based incentives, so staying current with official portals and working with experienced local counsel will reduce risk and speed time-to-market.