Considering starting a corporation in Korea as a foreigner? Wondering about the exact steps and costs involved? While the process might seem straightforward at first glance, it actually requires navigating a variety of documents and screening stages—many people run into obstacles during preparation.
A well-prepared plan and accurate documentation are absolutely essential. Many applicants get stuck on funding sources or administrative processes, so today we'll break down everything you need to know, step by step.
1. Preparing to Set Up a Foreign-Owned Corporation
From the very beginning, it's important to make sure nothing gets overlooked during preparation. The key factors are: your capital, securing office space, and having all the required paperwork in order.
| Item | Details |
|---|---|
| Capital | Minimum KRW 100 million to be recognized as foreign investment |
| Office | Must secure a commercial space suitable for your business |
| Necessary Documents |
|
2. Steps to Establish a Corporation
Most real-world issues arise during the procedural stages themselves. Here’s a general outline of the typical process:
| Step | Details |
|---|---|
| 1. Foreign Investment Declaration | File your investment declaration at a bank or KOTRA |
| 2. Transfer Capital | Send the investment funds from overseas to Korea |
| 3. Corporate Registration | Apply for incorporation at the district court |
| 4. Business Registration | Register your business with the National Tax Service |
| 5. Foreign-Invested Enterprise Registration | Register for immigration and bank reporting purposes |
Important Notes for Corporate Registration
- Register using the electronic certification system at the registration office.
- Check your chosen company name in advance to ensure it’s not already taken.
- If you change major shareholders or executives, additional documents will be required.
3. Estimated Costs When Establishing a Corporation
Generally, setup costs are divided into fixed and variable expenses throughout the process.
| Expense Item | Estimated Range |
|---|---|
| Corporation Registration Tax & Education Tax | About 1%+α based on capital |
| Notary Fees | KRW 20,000 ~ 300,000 |
| Attorney Fees | KRW 3,000,000 ~ 5,000,000 |
| Other Registration Fees | KRW 100,000 ~ 500,000 |
4. Common Mistakes and Precautions
5. Foreign-Owned Corporation FAQ
Q1: Is it mandatory for foreign investors to invest at least KRW 100 million?
A1: Legally, a KRW 100 million minimum is required for your investment to qualify as a “foreign investment.” However, some industries may require even more, so always check the standards for your business sector.
Q2: How long does the setup process take?
A2: If all requirements are met, expect about 1–2 months. Complications or special circumstances may increase the timeline.
...
- Capital: minimum KRW 100 million
- Prepare your business plan
- Commercial lease agreement
- Foreign investment declaration
- Corporate registration & business registration
Contact & Consultation
If you’re considering setting up a foreign-owned corporation in Korea, reach out to Vision Administrative Office.
Phone: 02-363-2251
Email: 5000meter@gmail.com
Address: (04614) 324, Toegye-ro, 3F, Jung-gu, Seoul (Sungwoo Building)
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