Business confirmation certificates

Issuance of Startup Company and SME Confirmation Certificates — The 7-Year Rule and Validity Period

Applicants for policy funds, guarantees, R&D projects or public tenders are often asked for a startup company confirmation certificate or an SME (small and medium enterprise) confirmation certificate. A startup company is an enterprise within 7 years from its business commencement date (for a corporation, the date of registration of incorporation), and the SME confirmation certificate is issued anew every year based on the settlement of accounts for the preceding year. Self-employed businesses such as restaurants are also eligible for a confirmation certificate as small enterprises or micro enterprises.

Procedure

Procedure type
  • Confirmation Difficulty Medium

    The authority reviews documents, and where needed carries out an on-site inspection, to confirm that statutory criteria such as company size, ownership or research staff are met before issuing a confirmation or recognition certificate.

  1. 1. Check which confirmation certificate is required

    First see whether the certificate named in the announcement or tender requirements is a startup company confirmation certificate or an SME (small enterprise or micro enterprise) confirmation certificate. The two have different issuance criteria and validity periods. Public institutions are required to purchase startup company products for at least 8% of their total annual purchases, so the startup company confirmation certificate is used in tenders.

  2. 2. Check whether the business qualifies as a startup company

    The business must be within 7 years from the business commencement date for an individual, or from the date of registration of incorporation for a corporation. Where a sole proprietor has converted to a corporation, the original business commencement date is used. A business taken over by inheritance or gift, or restarted in the same business type (at the sub-class level of the Korean Standard Industrial Classification) before 1 year has passed after closure, is not recognized as a startup. However, starting the same business type 1 year or more after the closure date, or a new business in a different sub-class, may be recognized.

  3. 3. Apply online and receive the certificate

    The startup company confirmation certificate is applied for free of charge, is issued within about 10 days if no supplementation is needed, and is valid for 3 years. The SME confirmation certificate can be applied for only online, through the SME Status Information System. For a sole proprietor with several places of business, sales and other figures are combined for the assessment.

  4. 4. Manage the yearly renewal schedule

    The SME confirmation certificate is valid for 1 year from the day 3 months after the end of the preceding business year. For a company whose business year ends in December, this is from April 1 to March 31 of the following year. A new certificate must be obtained once the settlement of accounts for the preceding year is finalized, so prepare in advance so that it does not clash with tender and support program schedules in March and April.

Required documents

Fees

Administrative service fee
  • from KRW 300,000
All administrative service fees exclude 10% VAT.

There is no issuance fee for the startup company confirmation certificate or the SME confirmation certificate. Our office fee starts from the amount shown above and may vary depending on whether an assessment of affiliated enterprises or a review of startup recognition is needed; we will give you an exact quote after reviewing your documents.

Legal basis and review date

  • Support for Small and Medium Enterprise Establishment Act, Article 2
  • Enforcement Decree of the Support for Small and Medium Enterprise Establishment Act, Article 2
  • Enforcement Decree of the Support for Small and Medium Enterprise Establishment Act, Article 3
  • Enforcement Decree of the Support for Small and Medium Enterprise Establishment Act, Article 14
  • Enforcement Decree of the Support for Small and Medium Enterprise Establishment Act, Article 15
  • Enforcement Decree of the Framework Act on Small and Medium Enterprises, Article 3-3
  • Enforcement Rule of the Support for Small and Medium Enterprise Establishment Act, Form No. 2

Checked against the statutes on

Statutes and public notices change, so each case needs to be checked individually. Statute titles are given in English for reference. The Korean statutes are the authoritative text.

Check these first

  • For a company whose business year ends in December, the SME confirmation certificate expires on March 31. Check whether it has been renewed before spring tenders and support programs.
  • If there is a history of business succession or reopening after closure, check first whether the business will be recognized as a startup.

Frequently asked questions

Until when can a startup company confirmation certificate be obtained?
It is available to enterprises within 7 years from the business commencement date for a sole proprietor, or from the date of registration of incorporation for a corporation. If a sole proprietorship was converted to a corporation, the period is counted from the original business commencement date, not the date of incorporation.
If I closed a business and start again, is it recognized as a startup?
Restarting in the same business type (at the sub-class level of the Korean Standard Industrial Classification) before 1 year has passed after closure, or taking over an existing business by inheritance or gift, is not recognized as a startup. Starting the same business type 1 year or more after the closure date, and a new business in a different sub-class, may be recognized as a startup.
Until when is the SME confirmation certificate valid?
It is valid for 1 year from the day 3 months after the end of the preceding business year. For a company whose business year ends in December, that is from April 1 to March 31 of the following year, and because eligibility is assessed on the settlement of accounts for the preceding year, a new certificate must be obtained every year.
Can a restaurant also get an SME confirmation certificate?
Yes. Self-employed businesses such as restaurants also fall under small enterprises or micro enterprises, depending on their size. The certificate is often requested when applying for policy funds or guarantees.
Is there a cost for issuance of the certificates?
There is no issuance fee for either the startup company confirmation certificate or the SME confirmation certificate. The startup company confirmation certificate is issued within about 10 days if no supplementation is needed.

Contact us

Hwang Yunsang Administrative Office in Songdo, Incheon prepares and submits administrative documents and explains the procedure. If your situation is similar, send us a message.

📍 2697, 26F POSCO Tower-Songdo, 165 Convensia-daero, Yeonsu-gu, Incheon, Republic of Korea · 📞 010-3374-2687 · 🌐 hwangadmin.com

This guide is general information based on public sources. Requirements, documents and deadlines differ by case and by the competent agency, so please confirm them before you proceed.