Our law firm is composed of experts in various fields from establishment of a Korean corporation. We will provide a kind and detailed explanation, and do our best from the customer’s perspective.
■ Company establishment process in Korea
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Reporting foreign exchange to bank
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Registration of establishment to court
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Business registration to tax office
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Opening banking account of the company
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Registering as a Korean corporation (if needed).
Our work scope is just as above. We will guide and assist you in detail.
■ Generally recommended types of company
In most cases, it is established as a stock company. It can be established as a limited company, and there are differences as shown in the table below.
| stock company | limited company | |
| purpose | Suitable for large companies with many shareholders | Suitable for small businesses |
| capital | You can start a company with a small amount of money, but In order to receive the benefits under the Foreign Investment Promotion Act, it is recommended to establish an establishment with more than KRW 100 million. | |
| unit of equity | KRW 100 or more | |
| share transfer | Generally available | Approval from the general meeting of members is required. |
| corporate bonds | Approval from the board meeting is required. | NOT available |
| director | A corporation with less than KRW 1 billion in capital may have one or two directors. | One or more registered executives are required. |
| auditor | Companies with less than KRW 1 billion in capital are not required. | NOT required |
| external audit |
If two or more of the following conditions are met: total assets of KRW 12 billion, total liabilities of KRW 7 billion, sales of KRW 10 billion, and 100 employees, an external audit by an accounting firm is required. | If the number of employees (investors) is 50 or more and a total of 3 or more conditions are met, including the requirements for establishment of a joint stock company, an external audit by an accounting firm is required. |
A limited liability company can also be established. If you have any questions, please ask and I will explain in detail.
When submitting documents prepared (COI, POA, etc.) to the registry office(court), a notarized translation is required. The fee of notarization of translation may be added later.
A Korean Corporation(외국인투자기업), which has some tax benefits, can be established by initially remitting KRW 100,000,000 or more.
Let us know the shareholders’ information(company name, address, representative, COI, etc.). Please provide us with your shareholder information and we will guide you through the rest of the process.
If you have any question, please feel free to email us.
Best Regards,
Law Office Inpyeong.
