THE SIMPLEST WAY TO

Business In Korea

Because opening a Korean bank account from abroad is typically restricted for foreign individuals, the capital contribution is often remitted through an account opened by a duly appointed Korean representative or other legally authorized recipient account. As the foreign founder does not have a Korean bank account under their own name, a lawful recipient account capable of receiving the capital contribution must be secured in advance. 

Preparation of the Articles of Incorporation (Draft)
 

Designation of a Korean Representative Director or Co-Promoter
 

Remittance of Capital from Overseas to the Korean Individual Account
 

Issuance of Certificate of Capital Deposit

Proceed with Corporate Incorporation Registration 

Notes / Important Considerations

• Indicate “Capital Contribution” (or similar wording) in the wire transfer memo.

• Ensure the remittance is not characterized as a loan.

• A written agreement is recommended to prevent any tax misunderstanding as a “gift.”

Our Attorney as Representative Director

Highest level of legal stability 

Procedure

• Execution of an Engagement Agreement

• Provision of a Trust or Escrow Account

• Remittance of Capital from Overseas to the Trust Account

• Transfer of Funds to the Corporate Bank Account upon Completion of Incorporation

Advantages

• Minimizes the Risk of Misappropriation of Funds

• Clear Traceability and Proof of Source of Remittance

• Stronger Legal Position in the Event of Disputes

When our Managing Attorney is appointed as Representative Director under a separate agreement, procedural coordination and compliance management can be conducted in an integrated manner. Our firm operates under licensed legal qualifications and established internal controls for fund management and regulatory compliance. 

In the event that our firm is appointed as Representative Director under a separate agreement, our involvement is confined to corporate maintenance and regulatory compliance matters. The founder, as the shareholder, retains full responsibility for operational control and commercial activities. 

Requirements for a Korean Corporate Registered Office Address 

A corporation’s registered office address in Korea must satisfy the following legal and administrative conditions under the Korean Commercial Act and tax regulations. 

1. Must Be a Physical, Verifiable Address

• The address must be a real, physical location capable of receiving mail.

• A P.O. Box alone is not acceptable.

• Virtual offices are permitted, but documentary proof of the right to use the address is required.

2. Proof of Lease or Right of Use

One of the following documents is generally required for business registration:

• Lease Agreement

• Sublease Consent Letter (if subleasing)

• Letter of Consent for Gratuitous Use (if using an affiliate’s or acquaintance’s property)

Tax authorities may request documentary evidence of occupancy or usage rights.

3. Industry-Specific Restrictions

Certain business sectors impose stricter address requirements, for example:

• Food manufacturing or sales – sanitation and facility standards

• Private academies – minimum floor-space requirements

• Travel agencies – insurance and office requirements

• Medical institutions – separate licensing and facility standards

A simple virtual office may be rejected for licensed or regulated industries.

4. Building Zoning and Permitted Use

• The building’s registered use classification must be compatible with the intended business activity.

• Conflicts between residential zoning and commercial/manufacturing activities may result in rejection.

• Officetels may be used, but industry limitations can still apply.

5. Eligibility for Corporate Registration

• The address must be valid for commercial registry filing.

• Full unit details (building, floor, suite number) must be specified.

• Leasing under a foreign individual’s name is legally possible, but additional scrutiny may occur during banking or tax procedures if the individual lacks a Korean residence status.

6. Bank Account Opening Considerations

• Using only a virtual office address may increase the likelihood of bank account denial.

• On-site inspections or physical presence verification may be requested by banks.

7. Possible Tax Office Inspection

• Newly established corporations, foreign-invested entities, or regulated industries may be subject to on-site verification by the tax office.

• Signage, office equipment, and actual accessibility can be reviewed.

Tax and Accounting Service 

It is highly recommended that the company engage a certified Korean tax accountant to ensure proper tax compliance and statutory filings. 

• Bookkeeping Service
  This service involves the ongoing recording and management of the company’s financial transactions, including income, expenses, invoices, and account reconciliation. Proper bookkeeping is essential for accurate tax reporting and financial transparency.

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• VAT (Value-Added Tax) Filing
  Businesses engaged in taxable activities in Korea are generally required to file periodic VAT returns. This process includes calculating output and input VAT, preparing reports, and submitting them to the National Tax Service within statutory deadlines.

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• Withholding Tax Filing
  When the company makes payments such as salaries, professional fees, or certain service payments, it may be legally obligated to withhold tax at source and remit it to the tax authority. Timely filing and payment are necessary to avoid penalties.

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• Four Major Social Insurance Registration and Reporting
  Companies employing personnel in Korea are typically required to register and manage contributions for the four national social insurance programs: National Pension, National Health Insurance, Employment Insurance, and Industrial Accident Compensation Insurance. This includes employee enrollment, monthly contribution calculations, and reporting obligations.