Korea Subsidiary Registration Process — Step-by-Step Foreign Investor Guide 2026

Establishing a wholly-owned Korean subsidiary (100% foreign-owned corporation) is the most common entry route for multinational companies entering South Korea. This guide provides a step-by-step breakdown.

Why Choose a Subsidiary?

• Liability protection: Parent company not liable for subsidiary's debts
• D-8 visa eligibility: Investors and executives can obtain long-term visas
• Market credibility: Korean customers often prefer dealing with a locally registered entity
• Tax treaties: Benefit from Korea's extensive tax treaty network

Pre-Registration Checklist

Before starting the registration process, ensure you have:

• Decided on company name (check availability at Supreme Court registry)
• Determined share structure and authorized capital
• Identified at least 1 director (can be foreign national)
• Secured a Korean business address (physical or virtual office)
• Prepared capital funds (minimum KRW 100 million for FDI)
• Had overseas corporate documents apostilled

Detailed Registration Steps

Phase 1: Document Authentication (2–4 weeks, done abroad)

All documents from the foreign parent company must be:

1. Notarized by a local notary
2. Apostilled (for Hague Convention countries) or legalized at Korean Embassy

Documents to apostille:

• Parent company corporate registry extract (issued within 3 months)
• Board resolution authorizing Korean subsidiary establishment
• Articles of incorporation of parent company
• Director passports (certified copy)

Phase 2: Temporary Bank Account & Capital Deposit (1 week)

1. Open a temporary account at a Korean bank designated for FDI
2. Wire the investment capital from overseas
3. Obtain a balance certificate from the bank

Phase 3: FDI Notification (2–3 days)

Submit to a foreign exchange bank:

• Foreign Investment Notification Form
• Evidence of investor identity
• Capital remittance records

Receive: FDI Notification Confirmation

Phase 4: Corporate Registration (1–2 weeks)

File with the competent district court registry:

Required filings:

• Application for incorporation
• Articles of incorporation (정관) — must be notarized
• Minutes of inaugural general meeting
• Certificates of director/auditor appointment
• Capital verification report from Korean CPA
• Bank balance certificate
• FDI notification confirmation

Registration tax: 0.4% of capital (minimum KRW 112,500)

Phase 5: Business Registration (1–3 days)

Within 20 days of corporate registration, register with the National Tax Service (NTS):

• Business registration application
• Corporate registration certificate
• Lease agreement for office address
• Director's ID

Receive: Business Registration Certificate (사업자등록증)

Phase 6: Post-Establishment (1–2 weeks)

• Corporate bank account: Open operational bank account
• 4 Major Social Insurance: Register employees with NPS, NHIS, EI, WCI
• D-8 visa: Apply for investor/executive visa if needed
• VAT registration: Automatically included in business registration

Common Mistakes to Avoid

1. Wrong notarization: Not all countries require apostille — check if Korea has a treaty
2. Document expiry: Korean registries require documents issued within 3 months
3. Address issues: Virtual office acceptance varies by industry
4. Capitalization: FDI minimum is USD 100,000, not KRW 100,000

Post-Registration Compliance

Korean corporations must:

• File annual corporate tax return by March 31
• File VAT returns quarterly
• Hold annual general meeting and maintain minutes
• File changes (director, address, capital) with registry within 2 weeks

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