Company registration in South Korea.

Foreign businesses registering in South Korea can choose from three main structures. A limited liability company (Yuhan Hoesa) is suited to small and medium-sized businesses. Ownership is based on registered equity interests rather than shares, capped at 50 members, with at least one director and shareholder required and no residency or nationality restrictions.

A joint stock company (Chusik Hoesa) is the preferred structure for businesses seeking investment, scalability or a path to public listing. It allows public share issuance and typically requires a board of three or more directors for larger companies. It is subject to annual general shareholder meetings, statutory audits and tax reporting.

A branch office is an extension of the foreign parent with no separate legal personality, meaning the parent retains full liability. It can engage in revenue-generating activities but must register with the Korean tax office and foreign exchange authorities and appoint a local representative. See our guide to seven types of business entities in South Korea for a full overview.

A foreign-invested enterprise (FIE) is a company where a foreign investor contributes at least KRW 100 million and holds at least 10% of voting shares. Registering as an FIE provides benefits not available to standard companies, including:

• Eligibility for a D-8 investor visa allowing foreign investors and executives to reside and work in South Korea
• Access to tax incentives and investment support from the Korea Investment Promotion Agency (KOTRA)
• Eligibility for cash grants, site support and regulatory assistance in certain sectors and free economic zones

FIE registration requires a foreign investment notification with the relevant authorities before or at incorporation. Companies below the KRW 100 million threshold can still incorporate but will not qualify for FIE benefits or the D-8 visa.

Registration of a limited liability company or joint stock company typically takes three to six weeks end-to-end. The core steps, name reservation, capital deposit, incorporation filing and business registration certificate issuance, can be completed in two to three weeks under standard conditions. VAT registration, social insurance registration and sector-specific licence applications add time and are often processed in parallel.

The timeline extends where foreign investment notification is required for FIE registration, or where regulated sector licences are needed, which can add several weeks. A branch office registration follows a similar timeline but requires additional documentation from the foreign parent. See our guide to how to register a company in South Korea for a full process breakdown.

Both a Yuhan Hoesa and a Chusik Hoesa require at least one shareholder, who can be an individual or a legal entity of any nationality. There are no residency or nationality restrictions on shareholders.

Director requirements differ by structure:

• A Yuhan Hoesa requires at least one director with no residency requirement
• A Chusik Hoesa requires at least one director; larger companies typically appoint a board of three or more, and listed companies must include independent directors
• Neither structure requires a company secretary, with statutory responsibilities typically handled by a legal representative or certified attorney

There is no general residency requirement for directors in either structure, though appointing a resident representative director is practically advantageous for banking and dealings with local authorities. See our guide to required governance positions in South Korea for further detail.

Companies registered in South Korea are subject to ongoing obligations under the Corporate Tax Act and the VAT Act. Key requirements include:

• Corporate income tax at 10% up to KRW 200 million, 20% up to KRW 20 billion, 22% above that and 25% over KRW 300 billion, with the annual return due within three months of year-end
• VAT at the standard rate of 10% with quarterly filings
• Withholding tax on dividends, interest and royalties paid to non-residents, with reduced rates available under applicable double tax agreements
• Annual statutory audit for companies above revenue thresholds
• Monthly payroll tax withholding and national insurance contributions for companies with employees

Branch offices are taxed as a permanent establishment of the foreign parent and generally cannot access double tax treaty benefits. See our guide to taxation in South Korea for a full overview.