Procedures for setting up a company in Korea

Korea, with its developed economy and dynamic business environment, is an attractive destination for many foreign investors. In order for the process of establishing a company in Korea to be fast and simplified, investors also need to find out information to understand the above process. Viet An Law would like to provide information through the article below.

Choosing a company name and address when setting up a company in Korea

Look up the name of the business

Regulations on business names in Korea:

• The business name must comply with the provisions of the Korean Commercial Law and other relevant regulations.
• The name of the enterprise must not be identical or confusing to the names of the registered enterprises.
• The name of the business must not contain words that are prohibited or violate fine customs.
• The business name must not infringe intellectual property rights, including registered trademarks.

You can visit the website of the Ministry of Justice of the Republic of Korea to look up the availability of the business name through the following link: https://www.moj.go.kr/moj_eng/index..do

Choosing the address of the company’s headquarters

Business address requirements in Korea:

• Registered office address: All companies registered in Korea must have a registered office address.
• Physical address: This must be a verifiable physical address. PO box addresses are generally not accepted.
• Legal Use: The company must have the legal right to use this address, which can be through a lease or ownership.

Apply for setting up a company in Korea

List of documents to prepare

• Charter of the company;
• List of shareholders or members;
• Dossier of registration office address;
• Business plan;
• The identity document of the legal representative has been consularly legalized and translated

Filing company incorporation documents at the Korea Commercial Register

After preparing the dossier, customers can submit it directly or online through the website: https://www.krs.co.kr/kor/

If the application is approved, you will receive a Certificate of Registration from the Korean Commercial Register – confirming that your company is duly registered and has the right to conduct business in Korea. This certificate will include essential information such as the company’s name, head office address, and business registration number, which will serve as the basis for the company’s later legal and business activities.

Register for tax identification number and social insurance after establishing a company in Korea

Registration of tax identification numbers

The company needs to register for a tax identification number after completing the business registration procedures.

A tax identification number registration dossier usually includes:

• Business registration certificate.
• The company’s charter.
• Information about the legal representative.
• Documents proving the company’s address.

Submission: Applications can be submitted in person at the NTS office or through the online registration system.

Steps can be found through the website of the National Tax Service of Korea (NTS) https://www.nts.go.kr/ or https://www.nts.go.kr/english/main.do . The NTS tax website offers the following services:

• Instructions for registering for a TIN tax identification number: The website provides a detailed guide to the process of registering for a tax identification number, including the necessary documents and steps.
• Applicable taxes: You can find information about the taxes that apply to businesses in Korea, including corporate income tax, value-added tax (VAT), and other taxes.
• File electronically: NTS encourages businesses to file electronically through their online system. The website provides guidance and tools to support e-filing.
• Online Support: The NTS website offers online support services, including answering questions and advising on taxes.

Open a bank account and contribute capital when setting up a company in Korea

Documents for opening a bank account

• Business registration certificate.
• Tax registration certificate.
• The company’s charter.
• Identification documents of the legal representative.

After completing the procedures for opening a bank account, the capital contribution is the next step for the company to officially operate. Members or shareholders will contribute capital in an agreed form, which can be cash, bank transfer, or other assets such as land use rights, machinery, and equipment. After contributing capital, it is necessary to make a record of capital contribution, clearly stating information about the capital contributor, the amount or value of the capital contribution, and the time of capital contribution. In case of capital contribution with assets, the valuation of assets and making a record of delivery and receipt are mandatory. All capital contribution documents should be carefully stored to ensure transparency and serve as a basis for future financial activities.