Open a Subsidiary in Korea: Registration and Requirements

If you want to open a subsidiary in Korea in 2026, our local specialists can assist you through the entire registration process. Discover below if this legal entity suits your interests.

Quick Facts
Applicable legislation (home/foreign country)	The subsidiary must respect South Korean laws.
Best used for	– commercial activities; – trading operations; – other activities as needed by the parent company.
Minimum share capital (YES/NO)	Yes, 100 million WON (approx. 70,000 USD) for registration as foreign direct investment.
Time frame for the incorporation (approx.)	Approx. 3 weeks.
Documents to be filed by the parent company	– information about the parent company; – Articles of Association; – proof of legal address; – proof of share capital.
Management (local/foreign)	The subsidiary can have a foreign manager who can obtain a Korean residence visa.
Legal representative required (YES/NO)	Yes, a subsidiary must have a local representative.
Local bank account (YES/NO)	Yes, a local bank account is required when setting up a subsidiary in Korea.
Independence from the parent company	The subsidiary is fully independent of the parent company.
Liability of the parent company	The foreign entity is not liable for the subsidiary’s debts and obligations.
Corporate tax rate	10%, 20%, 22%, and 25% rates (from 2026), depending on the taxable income.
Annual accounts filing requirements	Annual accounts and financial statements must be filed on an annual basis.
Possibility of hiring local staff (YES/NO)	Yes, the subsidiary can operate with local workforce.
Travel requirements for incorporating branch/subsidiary (YES/NO)	No, there is no need to travel to Korea for opening a subsidiary.
Double tax treaty access (YES/NO)	Yes, Korea has more than 90 double tax agreements.

What are the types of companies that can expand their operations through subsidiaries in South Korea?

The subsidiary is a business form that can be used by both foreign and Korean companies. However, it is more often employed by the former.

Is it possible to register a Korean subsidiary remotely?

Yes. For this purpose, we have dedicated packages starting at USD 3,500, VAT included.

What are the characteristics of a subsidiary company in Korea?

If you are interested in setting up a company in Korea through a subsidiary, here is how you can tell if it is the right option for you:

from a legal point of view, the subsidiary is a domestic company, and so it can be registered as a private or public limited liability company (we recommend the former);
from an operational point of view, it is an independent company, which can complete other activities than the parent company, thus ensuring better adaptation to the Korean market conditions;
from a taxation point of view, the subsidiary will pay the corporate tax on its worldwide income.

Here is also an infographic on how to establish a Korean subsidiary:

Are there any specific requirements for Korean subsidiaries with foreign ownership?

Yes, they must file a foreign investment notification (a report, not an authorization) with the Korea Trade-Investment Promotion Agency (KOTRA) or a foreign exchange bank. Then, parent companies must notify the Ministry of Trade, Industry and Resources (formerly MOTIE), a delegated official agency, or Invest Korea.

What are the steps to open a subsidiary in South Korea?

The registration procedure entails the following:

drafting a set of documents that must be filed with the Commercial Register;
obtaining a company seal;
opening a local bank account;
establishing a local address;
obtaining a tax identification code;
registering for social security as an employer.

Subsequently, each employee must be registered for social security and health insurance.

What documents are required to establish a subsidiary in Korea?

The documents that need to be filed are:

details of the foreign company;
identification papers of the representative (copy of passport, etc.)
foreign investment notice form for the capital contribution;
power of attorney (when notice is given by the representative).

The parent company must file its Certificate of Incorporation (issued by the Commerce Department or the equivalent of the Korean Trade Register).

Our Korean company registration agents can represent foreign businesses in the process of setting up subsidiary businesses. The advantage of working with us is that we can handle the procedure on your behalf without you having to travel here until necessary.

What is the most suitable business for a Korean subsidiary?

The main way to create a Korean subsidiary is to incorporate it as a private limited liability company.

We also have a video on this topic:

Must a Korean subsidiary bear the same name as the parent company?

No. This requirement applies only to Korean branches, another business form which can be explained in detail by our local specialists.

Must I appoint a local director if I open a subsidiary in Korea?

No, it is not mandatory. But you can transfer an executive from your home country, for whom you must also apply for a work and residence permit.

How long does it take to open a subsidiary in Korea in 2026?

You can expect the procedure to take about one month to complete.

How are subsidiaries taxed in Korea?

The following corporate tax rates must be considered:

10% for an annual profit of up to KRW 200 million;
20% for an annual profit ranging from KRW 200 million to KRW 20 billion;
22% for annual profits from KRW 20 billion to KRW 300 billion;
25% for profits of more than KRW 300 billion per year.

In case you would like to know more about subsidiaries in Korea or for help in setting up such a business here, please speak to our company formation representatives in Korea.