Registration of a Subsidiary Company in South Korea. Service offer

i. The amount of foreign investment (i.e. paid-up capital of the subsidiary) relating to the registration must first be reported to and approved by the authorized local foreign exchange bank (‘Approval’). The bank acts as the government’s agent. To obtain such Approval, it is usually necessary to submit notarized powers of attorney from a foreign investor and provide the details of a foreign company. Obtaining the Approval is the first step in the registration of a new company. The bank also conducts due diligence on the foreign investor-shareholder and anti-money laundering checks. Once the incorporation is complete, the company can open an account at another bank to transfer funds from the Approval bank. Almost all major global banks have offices in Korea.

ii. After obtaining the Approval and prior to the registration with the Company Registry Office, it is necessary to establish a subsidiary as such, which involves the preparation of certain documents, mainly the Articles of Association, as well as documents for the appointment and registration of directors and officers of the local company.

iii. The subsidiary company must then register with the Commercial Registry Office of the District Court at the company’s place of business, and this procedure constitutes the incorporation of the subsidiary as a legal entity. The second step in the registration of a subsidiary company is obtaining an extract from the Company Registry. The registration tax has to be paid in advance along with a few minor out-of-pocket expenses. The registration tax amount depends on the paid-up capital of the new legal entity, but is usually between USD 1 500 and USD 2 000. This registration tax is payable to the Company Registry Office.

iv. After that, the incorporated company will be registered with the local tax authorities to obtain a tax identification number and a Business Registration Certificate/Tax Certificate. For that, the local tax authorities will need to receive a copy of the executed lease agreement and the corresponding floor plan. Obtaining a Business Registration/Tax Certificate (BRC) will be the third step in the registration of a new legal entity and is necessary for the new legal entity to officially start doing business. Once the BRC is issued, the local legal entity will be allowed to engage in the business activities specified in its Articles of Association (unless special licences are required) and will also be registered for VAT.

v. Depending on the paid-up capital amount, a company may need to register as a Foreign Invested Enterprise with an authorized foreign exchange bank. If the paid-up capital is KRW 100 million or more, the Approval bank will issue a Foreign Invested Enterprise Registration Certificate (FRC) to the local company.

vi. If a foreign individual plans to reside in Korea as director of a local company and therefore needs a residence visa, the authorities can only issue such a visa if the paid-up capital exceeds a certain significant amount, which is usually KRW 100 million (~USD 75 817), and the local company has FRC status.

vii. If a local company plans to engage in export business, it needs to obtain certain licences such as an export licence.

• Details of the appointed director(s) and statutory auditor; together with a notarized Acceptance of Appointment letter from each director and statutory auditor (personal details required: full name / nationality / date of birth / residential address);
• Minutes;
• Notice to the Minutes;
• Letter of Confirmation;
• Certificate of Good Standing or Certificate of Incorporation for the for the parent company;
• Certificate of Incumbency for the for the parent company or a list of authorized directors, indicating the name and capacity of the person signing the relevant notification and Articles of Association on behalf of the legal entity;
• Application for registration of the corporate seal and a corporate seal certificate – executed and notarized by the representing director or sole director;
• Articles of Association;
• Corporate seal; and
• Address of the new legal entity, even if temporary, and finally, a copy of the executed office lease agreement and floor plan.

The approximate timeframe for registering a subsidiary company in Korea is from 2 to 4 months.

*The fees are valid as of April 2025.