REGISTRATION OF LIMITED LIABILITY COMPANY IN SOUTH KOREA

A Limited Liability Company (“LLC”) known as ‘Yuhan Hoesa’ in South Korea, is a hybrid business entity that combines the characteristics of both corporations and partnerships. One of the most significant advantages of an LLC is that its owners (members) are shielded from personal liability for the company’s debts and obligations. This means that personal assets are generally protected in the event of business failure.

LLCs can be managed by their members or by appointed managers, allowing for a tailored approach to governance that suits the specific needs of the business.

The Process of LLC Registration in South Korea

The registration of an LLC in South Korea involves several key steps, each designed to ensure compliance with local regulations and to establish a legitimate business presence.

Declaration of Business Registration at the Bank 

The process begins with the declaration of business registration at a bank. Entrepreneurs are required to deposit the initial paid-up capital into an escrow account, which serves as the financial foundation for the LLC. This initial step typically takes about five working days.

Preparation of Registration Documents 

Following the financial setup, the next step is to prepare detailed registration documents. This includes compiling essential company information, activities, and other necessary requirements. Due to its complexity, this phase demands meticulous attention to detail and is ongoing.

 Documents Required for LLC Registration

The following documents are generally required for the registration of an LLC in South Korea:

– Application Form: This includes essential details such as the company name, paid-up capital amount, business activity, and tenancy agreement for the business address in Korea.

– Director’s Information:

  – Passport

  – Proof of address

  – Letter of acceptance (if applicable)

  – Seal impression (if applicable)

– Shareholder’s Information:

  – Passport

  – Proof of address

  – Shareholders’ resolution to consent to register a company in Korea

– If the Shareholder is a Corporation:

  – Certificate of Business Registration

  – Memorandum of Articles and Association

  – List of shareholders

  – Passport of the corporate shareholder’s representative

Submission to the Registry Office 

Once the registration documents are ready, they must be submitted to the Registry Office. This submission is a critical step, as it ensures that the business complies with South Korean regulations and is officially recognized.

Issuance of Business Registration Certificate 

After the submission is approved, the business owner will receive a Business Registration Certificate from the tax office. This certificate is essential for operating in South Korea and is typically issued within two working days.

Opening a Corporate Bank Account 

Following the receipt of the Business Registration Certificate, the next step involves opening a corporate bank account. This account is vital for managing the company’s finances and ensuring compliance with banking regulations in South Korea. This process usually takes about five working days.

Obtaining a Tax Registration Number 

Obtaining a tax registration number from the National Tax Service is necessary for all tax-related matters. This number is crucial for conducting business and is generally issued promptly, often within two working days.

Conclusion

Establishing an LLC in South Korea offers a robust framework for entrepreneurs looking to enter the market. The limited liability protection, flexible management options, and streamlined registration process make it an appealing choice for many.

While the steps involved in registering an LLC may seem intricate, they are designed to facilitate a smooth transition into the South Korean business landscape. For those considering this path, understanding the nuances of the registration process and the required documentation can provide valuable insights into successfully launching a business in this dynamic economy.

HOW CAN WE HELP?

• We provide comprehensive support throughout the LLC registration process in Japan, ensuring compliance with all regulations.
• We assist in preparing essential documents and the company seal, ensuring they meet all requirements for incorporation submission for the respective obligations.
• We offer services to help you open a corporate bank account, obtain necessary business licenses, and register for taxes, ensuring your LLC is fully operational.