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Starting a Business in

Korea, Rep

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Korea, Rep. It examines the procedures, time and cost involved in launching a commercial or industrial firm with between 10 and 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016.

Compare Korea, Rep to 189 other economies.

  • No. Procedure Time to Complete Associated Costs
    1

    Make company seal

    Agency: Seal maker

    Business founders can make a company seal at the Sealmaker for approximately KRW 30,000.
    1 day KRW 30,000
    2

    Register the company with Start-Biz and pay incorporation fees

    Agency: Small and Medium Business Administration (SMBA)

    Start Biz Online (www.startbiz.go.kr), has combined the Internet Register Office, the Local Tax Payment System, the Electronic Notarization System, the National Tax Information System, the Financial Common Network, and the Social Insurance Information System which are independently run, for the purpose of incorporation. Start Biz Online allows its users to process the entire incorporation process online, including checking the availability of trade name and obtain a certificate of name availability, opening a bank statement from a bank, filing the application package for incorporation and obtaining a corporate registration tax bill, register the company and obtaining a certificate of seal impression of corporation, registering and getting a tax identification number (TIN), submitting the rules of employment, and registering electronically for the Public Health Insurance Program, the National Pension Fund, Employment Insurance, and Industrial Accident Compensation Insurance.

    After checking the company name, uploading incorporation documents as well as filling company information, applicants can process to the payments for the corporate registration tax bill as well as the registration fee. Since applicant has already filled in the company information, there is no need to fill in separate forms for the payments. They will be automatically directed to the payment pages where they can make all payments, and re-directed to the Start-biz system once the payments are completed.

    In most of the cases, it takes 3 days to obtain the certificate of incorporation from the Start-Biz system. During this period, the court registry office reviews the documents and information provided by the applicants, and due diligence of company address is conducted by the tax office.
    3 days KRW 2,000 fee of e-registration+ 1.2% capital registration tax + education tax (20% of the registration tax) + KRW 20,000 (e-registration form)