KR · N 37°34′ · E 126°59′
South Korea
A Korean stock company suits foreign businesses that need to contract, hire and sell locally. In open sectors, overseas owners can hold 100% and generally need no resident director, but must complete FDI notification, capital remittance, court registration and ongoing tax compliance.
Key points on one page.
- Tax
- From 2026, CIT is charged in four brackets of 10%/20%/22%/25%, plus local income tax of generally 10% of CIT; large MNE groups may face a 15% minimum tax
- Shareholders and directors
- Min. 1 shareholder; companies below KRW 1 billion capital may have 1 director; no residency requirement
- Share capital
- No statutory minimum under company law; each foreign investor needs KRW 100 million for FIPA foreign-invested status
- Local requirements
- Korean registered address required; no resident director or company secretary; regulated sectors need approvals
- Annual maintenance
- Annual corporate tax and quarterly VAT filings; external audit applies when statutory thresholds are met
- Incorporation timeline
- Approx. 2–4 weeks; document authentication, banking and sector permits can extend this
- Public disclosure
- Company, address, directors and representative director are searchable; unlisted shareholders and beneficial owners are generally not public
Facts last checked · 2026-10-23
This page summarises publicly available regulations for general reference only and does not constitute legal or tax advice. Rules in each jurisdiction may change at any time; please confirm the latest position with an Offshore Isle advisor.
References (7)›
- 01Invest KOREA — How Foreigners Can Start Business in Korea
- 02KOTRA — 2025 Guide to Establishing a Business in Korea
- 03PwC Worldwide Tax Summaries — Korea, Republic of: Taxes on Corporate Income
- 04National Tax Service — Filing Returns
- 05PwC Worldwide Tax Summaries — Korea, Republic of: Tax Administration
- 06National Tax Service (Korea) — Corporate tax rates for fiscal years from 2026
- 07EY Tax News — Korea enacts 2026 tax reform bill
02 · Advantages
Why South Korea
- 01Direct access to Korea’s high-spending market for contracts, invoicing, hiring and procurement
- 02Clear FDI notification and remittance framework with national treatment and profit-repatriation protection
- 03Permitted sectors can be wholly foreign owned, without a statutory resident director or company secretary
- 04Governance can be streamlined to one director below KRW 1 billion in capital
- 05Eligibility-based tax incentives are available for qualifying SMEs, R&D and investment
03 · Requirements
Formation requirements
- FDI notification: Notify KOTRA or a foreign-exchange bank before investment and remit capital through a bank
- Foreign investor: For FIPA registration, each investor ordinarily invests at least KRW 100 million and acquires 10%+ voting shares
- Directors: One director is possible below KRW 1 billion capital; no local-residency requirement
- Documents: Overseas shareholder certificates and powers of attorney normally need authentication and Korean translations
- Address and sector: Maintain a Korean registered address; verify ownership caps, licences or approvals for restricted sectors
04 · Compliance
Annual compliance
- Corporate tax: File and pay the annual return within three months of financial year-end, and handle interim filing
- VAT: Generally make quarterly preliminary and semi-annual final filings, with timely tax invoicing and records
- Accounting: Keep Korean-standard books and prepare financial statements; obtain an external audit if thresholds apply
- Registry and FDI data: Promptly update statutory registrations, shareholder records and FDI-registration changes
- Withholding: Report and withhold as required for payroll and payments of dividends, interest or royalties overseas
After incorporation, Offshore Isle sets a compliance calendar. We remind you in advance of annual returns, renewals and filings, and handle them on your behalf.
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