Establishing a Limited Liability Company (LLC) in Korea is a common choice for foreign investors due to its less stringent disclosure obligations and restricted share trading. Below is a concise guide outlining the necessary documents and the responsible parties for each step in the process when foreign investors are injecting capital.
Initial Requirements
- Provide Office Address: The company must provide a physical office address in Korea.
Documents to be Prepared by the Shareholder (100% Owner of newCo)
- Power of Attorney (POA): Two copies are needed, including notarized English versions for the parent company and foreign investment purposes.
- Corporate Registry: The shareholder must provide a copy of the corporate registry.
- Shareholders’ List: This document verifies the ultimate ownership of the new corporation (newCo).
Documents to be Prepared by the Representative of newCo
- Copy of Representative’s Passport: A copy of the passport of the newCo’s representative.
- Acceptance Letter: An acceptance letter (in English) from the director.
- Certificate of Representative’s Home Address: Proof of the home address of the representative.
Reporting and Registration
- Report a Foreign Investment to Korean Foreign Exchange Bank: The company must report the foreign investment to the bank, and STAR BPO will assist with this process.
- Capital Injection: The company must ensure the capital injection is completed.
- Registration of Incorporation at Korean Court: STAR BPO will handle the registration of the corporation and the application for the corporate seal certificate.
Timeline and Actions by STAR BPO
- 3 Days: Court Registry: STAR BPO will apply for the court registration.
- 2 Days: Application of Korean Tax ID: STAR BPO will apply for the business registration.
- 1 Day: Bank Account Opening: STAR BPO will assist in opening a bank account for the new corporation.
Why Choose an LLC in Korea?
Foreign investors often opt to establish an LLC in Korea because it offers several advantages:
- Limited Disclosure Obligations: LLCs have fewer disclosure requirements compared to other corporate structures.
- Restricted Share Trading: Share transfers within an LLC are not as freely conducted, providing more control over ownership changes.
By choosing an LLC, foreign investors can benefit from a more straightforward and controlled corporate structure in Korea. For further details or assistance, please contact STAR BPO, which specializes in establishing foreign-invested LLCs in Korea, at siyoon@star-tax.kr.
