Services · Company formation
How to open a business in South Korea as a foreigner
The law allows 100 won of capital, but a foreigner has to invest about $74,700 for an investor visa. We cover company forms, remote registration, government costs, taxes from 10% and a Korean bank account.
Is it worth opening a company in South Korea in 2026
Korea abolished the minimum share capital for companies back in 2009, and the registration tax on a new company, together with the local education tax, starts at 135,000 won, about 100 US dollars (example calculation at roughly 1,350 won per dollar). Foreign founders face a different threshold: for the company to count as a foreign investment and open the way to the D-8 investor visa, each foreign investor puts in at least 100 million won, about 74,000 dollars.
The registration itself follows clear rules. You can sign documents before a notary at home and have them filed in Korea under a power of attorney. The state trade and investment agency KOTRA (Korea Trade-Investment Promotion Agency) and its Invest Korea service set out the procedure step by step, and the tax office issues a business registration in 2-5 days.
The uncomfortable truth lies elsewhere. Every document has to be in Korean, the tax office needs a lease for premises it is entitled to inspect, the company charges 10% VAT from its first sale, and banks vet foreigners closely. Russian citizens also run into Korean sanctions against several Russian banks, including Sberbank and VTB.
It suits those who sell to Korean customers or buy in Korea, IT and content companies with Korean partners, and people ready to invest 100 million won and move on a D-8 visa. It does not suit anyone looking for a company without an office or staff to serve clients in other countries, or those whose money sits only in Russian banks. If you need a trading company with minimal formalities, compare company registration in Hong Kong and in Singapore.
We will calculate online the cost of registering and running your company for the first year.
Which company to open in Korea: jusik hoesa, yuhan hoesa or LLC
Korea's Commercial Act (Sangbeop, 상법) recognises five types of company, but Invest Korea says plainly that most legal entities in the country are stock companies. For a foreigner the choice usually comes down to three forms, while a branch or liaison office only works for a foreign company.
| Form | What it is | Management | Who it suits |
|---|---|---|---|
| Stock company - jusik hoesa (주식회사) | The most common form. Shareholders are liable only up to their contribution | With capital under 1 billion won, 1-2 directors without a board are enough, a statutory auditor (gamsa, 감사) is optional. A director's term is at most 3 years | Most people: for Korean customers, banks, investors and the D-8 visa |
| Limited company - yuhan hoesa (유한회사) | The equivalent of a private limited company. Members are liable up to their contribution | At least one director, no board, auditor optional. The law sets no limit on a director's term | Subsidiaries of foreign groups and a small circle of members |
| Limited liability company - yuhan chaegim hoesa (유한책임회사) | Modelled on the US LLC, introduced in 2012 | No directors: an executive (eommu jiphaengja, 업무집행자) chosen from the members or from outside, including a company, runs the business | Joint projects where members want to write their own rules |
| Branch - jijeom (지점) | An office of a foreign company without a separate legal entity. Pays tax only on Korean-source income and does not obtain foreign-invested company status | A representative in Korea, court registration under the foreign exchange law | A foreign company that sells in Korea in its own name |
| Liaison office - yeollak samuso (연락사무소) | An office of a foreign company that may not sell | No court registration, the tax office assigns a code | Market research and business contacts |
| General and limited partnership - hapmyeong hoesa (합명회사) and hapja hoesa (합자회사) | Entities where some or all members are liable for debts with all their assets | Under the members' agreement | Almost no one |
The main difference is transparency and formalities. A stock company re-elects its directors at least every 3 years and registers each re-election, while the limited company and LLC have looser rules. Banks and partners, however, know the jusik hoesa best.
How much capital a Korean company needs: 100 won or 100 million won
100 won or about $74,700: that is the gap between what the Commercial Act allows and what a foreigner needs for investor status. Amendments that took effect on 28 May 2009 removed the old minimum of about $37,400. Formally, a single share with a par value of at least 100 won is now enough.
The threshold for foreigners. The Foreign Investment Promotion Act (외국인투자촉진법) grants foreign-invested company status only if a foreigner has put at least $74,700 into the company. If the investment is smaller, the company is still perfectly legal, but the money is handled under the Foreign Exchange Transactions Act (외국환거래법) and there is no investor status.
Why the status matters. Without it there is no D-8 visa (Business Investment), the status that lets a foreign investor live in Korea and run their company. Under the Foreign Investment Promotion Act, each foreigner applying for this visa must invest about $74,700 individually, not the founders together.
The capital has to work. If an individual foreigner has invested less than about $224,100, the Invest Korea visa guide says a D-8 application must show that the money was spent on the business: receipts, office fit-out costs, account statements. You also need a lease, photos of the office and of the signage.
Example calculation: at about $5 per dollar, about $74,700 is roughly 74,000 US dollars and about $224,100 about 222,000 dollars. If you do not plan to move, the capital can be more modest, but banks and partners do look at its size too. More on moving in the relocation section.
How to register a company in Korea remotely: steps and timing
You can register a Korean company without ever setting foot in the country. According to Invest Korea, a founder may be a foreigner who does not live in Korea, and a judicial scrivener (beommusa, 법무사) files the documents with the court under a power of attorney. A trip is most often needed only for the bank.
What the founder does at home. A foreigner who is not registered as a resident in Korea signs instead of using a Korean seal, and the signature is certified by a notary. The consent to act as director, proof of address and the power of attorney are notarised with an apostille: Russia, Belarus and Korea are all parties to the Hague Convention. Any translator may translate the documents into Korean, and the translation does not need to be notarised.
Address and officers. Korean law does not require a company secretary, as Hong Kong or Singapore do, and a resident director is not mandatory either. But for business registration the tax office wants a lease for the premises, and if there are no staff in Korea to handle taxes, a notice appointing a tax agent.
| Step | What happens | Timing |
|---|---|---|
| 1. Company details | Name check in the Supreme Court's online registry (iros.go.kr), business activity, capital, directors, financial year | Up to the founder |
| 2. Documents abroad | Passport, certified signatures, proof of address, powers of attorney, apostille, Korean translation | Depends on the notary in your country |
| 3. Foreign investment notification | Filed with KOTRA or a designated foreign exchange bank, a representative can file it | Same day |
| 4. Capital transfer | Money arrives from abroad in a temporary or non-resident account, the bank issues a certificate of payment for shares | Usually a few business days |
| 5. Registration tax and court filing | The tax is paid to the local government, the filing goes to the court registry office (deunggiso, 등기소) within 2 weeks after the incorporation review | Usually about 1-2 weeks |
| 6. Tax registration | Business registration number from the National Tax Service (NTS). Apply within 20 days of starting business | 2 days, up to 5 days if the tax office inspects the premises |
| 7. Company account | The capital moves from the temporary account to the company's account | Up to the bank |
| 8. Foreign-invested company registration | With the same body that took the notification, within 60 days after the capital is fully paid | After tax registration |
The whole process usually takes 3 to 6 weeks, not counting document preparation in your country. A small stock company with capital under 1 billion won whose founders take all the shares needs no Korean notary, and a bank balance certificate can replace the certificate of payment for shares.
How much it costs to open a company in South Korea
The registration tax on the very same company is three times higher in Seoul than in Busan, because the rate is tripled in the zone around the capital. This is the main government cost; the other charges run to tens of thousands of won.
Under the Local Tax Act, the registration tax (deungnok myeonheose, 등록면허세) equals 0.4% of paid-in capital, but no less than $85. On top of it comes the local education tax (jibang gyoyukse, 지방교육세) at 20% of the registration tax. The tripled rate applies in the overcrowding control area of the capital region (gwamil eokje gwonyeok, 과밀억제권역): Seoul, most of Incheon and 14 cities in Gyeonggi Province, including Suwon, Seongnam and Goyang. Some industries are exempt.
| Item | Outside the Seoul zone | Seoul and the surrounding zone |
|---|---|---|
| Registration tax | 0.4% of capital, minimum $85 | 1.2% of capital, minimum $255 |
| Local education tax | 20% of the registration tax, minimum $20 | 20% of the registration tax, minimum $55 |
| Court registration fee | ~$15 for electronic filing, paper filing costs more | Same |
| Company seal | ~$25 (Invest Korea estimate) | Same |
| Notary in Korea | Not needed for a small stock company whose founders take all the shares. Otherwise ~$150, according to Invest Korea | Same |
Example calculation for capital of about $74,700. In Busan the registration tax is about $300 and the education tax about $60, about $375 in total with electronic filing. For downtown Seoul, Invest Korea puts government costs, the seal and the notary at about $1,270 excluding the cost of support: about $900 of registration tax and about $180 of education tax.
Not in the table: the cost of our support (quoted after reviewing the documents), the notary and apostille in your country, translations, accounting and rent. When renting premises in Korea a deposit is usually paid, and it can exceed all the registration costs combined.
The registration tax in Seoul is three times higher, and a visa needs an investment from $74,700
The law does not forbid registering a company in South Korea on your own, and you do not have to travel there. But mistakes cost more than the fees: an address in the Seoul zone where another city would be cheaper, an investment below the threshold for foreign-invested company status and the investor visa, an office the tax office does not accept on inspection, documents without an apostille. We choose the city and structure, register the company, obtain foreign investment status and prepare the visa pack.
The cost of support depends on the structure and investment amount; a manager will calculate it in the chat.
What taxes a company pays in South Korea
From 2026 Korea raised corporate income tax by 1 percentage point across the whole scale, back to the 2022 rates: for financial years starting on or after 1 January 2026, profit up to 200 million won is taxed at 10% instead of 9%. With local tax that makes 11%, below Singapore's 17% headline rate. But a Korean company pays tax on its worldwide profit, not just on income earned in Korea.
| Tax | Rate in 2026 | What to know |
|---|---|---|
| Corporate income tax (beobinse, 법인세) | 10% on profit up to 200 million won, 20% from 200 million to 20 billion won, 22% from 20 to 300 billion won, 25% above 300 billion won | A progressive scale: each rate applies only to its own slice of profit |
| Local income tax (jibang sodeukse, 지방소득세) | From 1% to 2.5% on the same brackets | Paid separately, on top of corporate income tax |
| VAT (bugagachise, 부가가치세) | 10%, exports of goods and some services to non-residents at 0% | No threshold for companies: the simplified regime for turnover under 104 million won is open only to sole proprietors. Returns are quarterly, within 25 days after the quarter, and tax invoices must be electronic |
| Withholding tax on dividends to non-residents | 22%: 20% plus local tax at 10% of the tax | A tax treaty with the recipient's country may reduce the rate |
Example calculation. A company earns 150 million won of profit. Corporate income tax is 15 million won and local tax 1.5 million won, 16.5 million won in total, or 11%. When dividends go to a non-resident without a tax treaty, another 22% is withheld.
Dividends to Russia and Belarus. The treaty with Belarus gives 5% for a holding of 25% or more and 15% otherwise. The treaty with Russia provides for 5% or 10%, but by Decree No. 585 of 8 August 2023 Russia suspended Articles 5-21 and 23 of that convention, including the dividends article. Relying on the reduced rate is risky: Murblz specialists check it before any payout.
Taxes in your home country. If the founder remains a tax resident of Russia or another country with controlled foreign company (CFC) rules, they usually need to notify their tax authority of their stake in the Korean company. More on the CFC notifications and reporting page.
Annual reporting of a Korean company and the beneficial ownership register
A Korean company files its corporate income tax return and pays the tax within 3 months after the end of the financial year. There is also an interim payment: the return and payment for the first 6 months are due within 2 months after the half-year. The company chooses its own financial year in the articles.
What else the company files. VAT returns every quarter. If there are employees, the company withholds tax from their wages and usually remits it monthly. For non-residents with no staff in Korea, Murblz specialists handle this work together with a partner holding a Korean tax accountant licence (semusa, 세무사).
Corporate duties. A stock company director's term is at most 3 years (Article 383 of the Commercial Act), after which the director is re-elected or replaced. A change or re-election has to be registered within 2 weeks, and the registration tax on it, including education tax, is 48,240 won. For late filing, a court may impose a fine of up to 5 million won under Article 635 of the Act, and it is paid not by the company but personally by the responsible director.
Audit. The Act on External Audit of Stock Companies, Etc. (주식회사 등의 외부감사에 관한 법률) covers stock companies and limited companies. An audit is required with prior-year assets or revenue of 50 billion won, and for a stock company also when two of four conditions are met: assets from 12 billion won, liabilities from 7 billion won, revenue from 10 billion won, 100 or more employees. A limited company has five conditions, adding 50 or more members, and must meet three. A small company stays below these thresholds.
Beneficial ownership register. In 2026 Korea has no single state register of companies' ultimate owners. Banks identify beneficial owners under the Act on Reporting and Using Specified Financial Transaction Information. On 16 September 2026 the government announced a new anti-money laundering strategy: the Korea Financial Intelligence Unit (KoFIU) will collect and verify this data from banks, and in the long term companies and trusts will file their owners' details with a register themselves.
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Bank account in Korea for Russian and Belarusian citizens
A Korean company can be registered under a power of attorney, but its account is opened by a bank that decides for itself whether to take you on. The Invest Korea guide on bank accounts for foreigners opens by saying that you need to prepare documents and visit the bank. To move the capital from the temporary account to the company's account, the bank asks for the registry extract, the company seal certificate, the tax registration certificate and the original identity document of the representative director.
In person or by proxy. Certain banks open a company account under a power of attorney, while others require the director to come in. Each bank sets its own rule, so it is wise to plan a trip to Korea from the start. The bank will also ask why the company needs the account and request contracts, a business description and proof of the source of funds.
Russian citizens. Korean law does not bar Russians from being founders and directors. The limits come from sanctions: since March 2022 Korea's Ministry of Economy and Finance has banned transactions with seven Russian banks, including Sberbank and VTB, and it later added Russian individuals and companies to its lists. Any financial transaction with listed persons requires prior approval. In practice, capital and payments are best routed from an account in a third country.
Trade with Russia and Belarus. Korea restricts exports to both countries. Beyond strategic goods, after the list was expanded on 9 September 2024, 1,402 items need a licence from Korea's trade authority, including machine tools, construction machinery and batteries. A company that wants to trade with Russia or Belarus needs its goods checked before the first deal.
Entry. Under a 2013 agreement, Russians can enter Korea visa-free for up to 60 days, with no more than 90 days in any 180 and no right to work. To live in Korea and run the company on the ground, a separate status of stay is needed, such as the D-8 visa. Belarusian citizens should check the visa regime with the Korean embassy before travelling.
More on accounts on the business accounts and personal accounts pages.
What we do
Korea takes careful preparation: documents in Korean, certifications and apostilles in your home country, a real office and strict banks. We handle the organisation, and whatever Korean law reserves for licensed professionals is done by our partners.
- we assess whether Korea fits your goal and say so plainly if another country works better;
- we help choose the form: stock company, limited company or LLC, subsidiary or branch;
- we prepare incorporation documents and powers of attorney, arrange notarised signatures, translations and apostilles;
- we arrange the foreign investment notification, the capital transfer and the court filing through partner licensed judicial scriveners;
- we help with a registered address and with renting an office the tax office will accept;
- we bring in Murblz accounting and tax specialists for tax registration, VAT, returns and post-registration notifications;
- we prepare a compliance pack for the bank and help open the company account;
- if you plan to move, we arrange the D-8 visa application through partners.
Legal representation - registration filings, immigration documents, disputes - is handled by our partners with a local licence. Other countries are covered in company registration and company registration abroad.
See also
Business account · Personal account · Investment property · Country taxes · All country programs
FAQ
How much does it cost to open a company in South Korea?
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