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Company Incorporation Guide
Korea Company Incorporation Guide (WFOE)
This guide summarizes requirements, documents, costs, step-by-step process with estimated timelines, and post-incorporation obligations for a wholly foreign-owned enterprise in Korea.
Overview · 01
Basic Requirements
- Share Capital: Minimum KRW 10,000,000 (≈ USD 7,100).
- Shareholder: Foreign corporate or individual investor permitted.
- Officers: 1 Representative Director (mandatory), 1 Nominator (no shareholding; filing purpose), and a Supervisor required if paid-in capital ≥ KRW 1 billion (a director cannot double as supervisor).
Example
Capital KRW 500M → supervisor optional / KRW 1.5B → supervisor mandatory.
Documentation · 02
Required Documents
(a) Investor
| Type | Key Documents (Notarized & Apostilled / Consularized + Translation) |
|---|---|
| Foreign Company | Incorporation/registry, Articles, shareholder/director lists, Board minutes, HQ POA (with rep. passport & address proof), shareholder list, translations. |
| Hong Kong Company | CI, BR, NNC1/NAR1, A&A (High Court notarization), Board minutes, HQ POA (passport & address proof), shareholder list, translations. |
| China Company | Business license & Articles (notarized & apostilled), Board minutes, HQ POA (passport & address proof), shareholder list, translations. |
| Individual (Foreigner) | Passport, address proof (last 3 months), POA, Consent to Act as Director (notarized & apostilled), translations. |
(b) Officers
- Foreigners: Passport, address proof (≤3 months), POA, director consent (notarized & apostilled).
- Koreans: Seal, seal certificate, resident registry.
Pricing · 03
Costs (USD)
| Item | Amount | Notes |
|---|---|---|
| Incorporation fee | 2,050 | Incl. govt fee 700 / Seoul; 1 rep. + two individual shareholders baseline. |
| Corporate shareholder add-on | 200 | Applies when a body corporate is a shareholder. |
| Bank account opening | 1,080 | Kookmin Bank, etc. |
| Virtual office | 400/yr~ | Real office in Gangnam → KRW 600k+/mo. |
| Translation | Quoted | Per page/volume. |
| Bookkeeping & tax | 150/mo~ | Based on volume & revenue. |
Process · 04
Procedure & Estimated Timelines
- 1Structuring & kickoff (2-3 business days) — finalize cap table, officers, purposes, capital; deliver checklist/templates.
- 2Docs, notarization & apostille (1-3 weeks) — collect investor/officer docs; legalize; translate.
- 3Virtual (escrow) account (1-2 business days) — open initial virtual account for capital.
- 4Capital remittance & confirmation (2-5 business days) — deposit ≥ KRW 10M; obtain bank confirmation.
- 5Court registration (6-8 business days) — file with Commercial Registry; obtain corporate registry extract.
- 6Share acquisition filing / ancillary registrations (2-3 business days, parallel)
- 7Business & VAT registration (3-5 business days) — at district tax office; appoint tax agent if needed.
- 8Corporate bank account (7-14 business days) — KYC/EDD, approval, account issued.
Total: typically 4-6 weeks (varies with legalization pace and bank KYC).
Compliance · 05
Post-Incorporation Obligations
- VAT: Quarterly filings and payments; e-tax invoices management.
- Payroll & Withholding: Monthly/biannual filings; four social insurances.
- Accounting & CIT: Annual financial statements; corporate income tax return.
- External Audit: Mandatory if thresholds met; directors cannot serve as supervisor.
- Labor compliance: Employment contracts, working hours, paid leave, severance, OHS.
- Corporate changes: Prompt registry updates for director/address/capital changes.
- Governance: Annual general meeting; minutes retention; shareholder register upkeep.