South Korea Company Registration

South Korea is a global economic powerhouse, celebrated for its cutting-edge technology, robust manufacturing sector, and strong consumer spending. Thanks to a transparent legal framework, world-class infrastructure, and highly skilled workforce, the country draws businesses of all sizes. Foreign investors typically choose between two common business forms: Yuhan Hoesa (similar to an LLC) or Chusik Hoesa (a joint-stock company). Corporate tax rates are progressive—capped around 25%—and businesses enjoy minimal bureaucratic hurdles, making South Korea an ideal launchpad for expansion into the broader Asian market.

Types of Companies

1. Yuhan Hoesa (유한회사)
   
   • Closely resembles a limited liability company
   • Limited liability for shareholders
   • Often favored by smaller or medium-sized ventures
2. Chusik Hoesa (주식회사)
   
   • Equivalent to a joint-stock or stock corporation
   • Ideal for larger investments, especially those seeking to issue or trade shares
   • Requires a minimum of one director and one shareholder
     
     

Key Tax and Regulatory Considerations

• Progressive Corporate Tax: Generally up to 25% for higher-income brackets, with lower rates for smaller taxable amounts
• Value Added Tax (VAT): Standard 10% on goods and services, with periodic filing requirements
• Withholding Taxes: Applicable to certain payments to non-residents, typically subject to double-tax treaties
• No Official Minimum Capital: Although practical amounts are recommended for operational credibility
  
  

Registration Process and Requirements

1. Determine Company Type: Decide between Yuhan Hoesa (LLC-like) or Chusik Hoesa (joint-stock) based on your strategy
2. Name Reservation: Ensure the proposed company name is unique and compliant with Korean regulations
3. Draft Articles of Incorporation (AoI): Outline corporate structure, share capital, business objectives, and director/shareholder details
4. Verification and Capital Deposit: Verify the AoI with the local notary or relevant authority; deposit capital in a Korean bank account (if needed)
5. Business Registration: File all required documents with the local court registry or the relevant government portal
6. Tax and VAT Registration: Obtain a Business Registration Certificate from the National Tax Service (NTS)
7. Open Corporate Bank Account: Finalize operational banking once the company is fully registered
8. Licenses and Permits (If Required): Some sectors (e.g., finance, tech, gaming) may need additional regulatory approvals
   
   

Why South Korea?

• High-Tech Environment: A global leader in electronics, telecommunications, and software development
• Advanced Infrastructure: Exceptional internet speeds, extensive public transport, and efficient logistics
• Skilled Workforce: Well-educated talent pool with specialized expertise across various industries
• Strategic Asian Gateway: Excellent trade agreements and proximity to major regional markets
• Supportive Government Initiatives: Grants and incentives for R&D, startups, and foreign direct investment
  
  

Ongoing Compliance

• Annual Financial Statements: Must be prepared; audits are required above certain size thresholds
• Tax Filings: Submit corporate tax returns typically by the end of March (for December year-end companies), plus quarterly VAT returns
• Shareholder and Board Meetings: Maintain accurate records of meetings, resolutions, and corporate changes
• Labor Regulations: Register employees with social insurance programs and comply with local employment laws
  
  

Why Work With Us?
From comparing Yuhan Hoesa vs. Chusik Hoesa to managing compliance and tax filings, our experts streamline every aspect of forming and running your Korean entity. We help you navigate local regulations, harness government incentives, and leverage South Korea’s flourishing consumer and technology markets to drive sustainable growth.