South Korea represents an attractive jurisdiction where foreign entrepreneurs can rapidly and easily set up a business. In this article, our company formation consultants in Korea analyze the share capital in Korea which is necessary for various types of legal entities here.
The minimum capital requirement for the most common legal entities in Korea
The two most common types of legal entities in Korea are the joint-stock company and the limited liability company.
For a Korea joint-stock company formation, there is no minimum capital requirement set in place. However, if the investor is a foreign citizen, an amount of KRW 100 million is needed for every one of such investor to qualify for the benefits according to the Foreign Investment Promotion Law (FIPL).
The shareholders of a joint-stock company in Korea have responsibilities which are limited to the extent of their capital investment.
Stocks of such entities can easily be transferred, even though it depends on the approval of the board of directors.
This type of companies must organize shareholder meetings at least once a year to analyze the financial statements and dividends.
As about the limited liability company, there is no capital requirement either in order to open such a company in Korea.
At the same time, if the company has a foreign entrepreneur, a capital of KRW 100 million is required for each such entrepreneur to qualify for the advantages according to the FIPL in this country.
Other aspects related to the share capital in Korea
A legal entity on Korea has to appoint minimum three directors, comprising a representative director and an in-house statutory auditor, except when the entity has a total capital of less than KRW 1 billion.
In such a case, there can be only one or two directors. Our Korea company formation consultants can provide more details related to this matter.
For further information about the minimum share capital in Korea, please feel free to get in touch with our friendly staff. We also provide assistance related to starting a business in Korea, if necessary.