Issuance of Startup Company and SME Confirmation Certificates

Procedure

Procedure

1. 01

   Confirm the certificate and base year required: First check whether the notice or tender requirements call for a startup company confirmation certificate or an SME (small enterprise) confirmation certificate, and which business year it must be based on. The two certificates differ in legal basis, criteria and validity period, so one cannot replace the other.

2. 02

   Check startup eligibility: Calculate whether the company is within 7 years of commencing business and review the exclusions in Article 2 of the Enforcement Decree. Starting the same kind of business by inheritance or gift, reopening the same kind of business within 1 year after closure, a new corporation in which an existing corporation holds more than 50% of shares, an existing corporation's oligopolistic shareholder becoming the new corporation's oligopolistic shareholder, and a mere change of company form are not treated as a startup, and "same kind" is judged by the sub-subclass of the Korean Standard Industrial Classification.

3. 03

   Organize corporate conversion and shareholder materials: When a sole proprietor that is a startup company comprehensively transfers the rights and obligations of the existing business to a new corporation of which the proprietor is the representative, that corporation succeeds to the startup company status. Compare the shareholder registers at incorporation and at application and the representative's past business history, and prepare materials showing that no exclusion applies.

4. 04

   Check SME size and independence criteria: Calculate whether the average sales of the main industry fall within Appended Table 1 of the Enforcement Decree (e.g., KRW 40 billion or less for accommodation and food services) and whether total assets are less than KRW 500 billion. Also check, based on the shareholding as of the last day of the preceding business year, whether a corporation with total assets of KRW 500 billion or more is the largest investor holding 30% or more of shares, and whether average sales combined with affiliated companies exceed the threshold.

5. 05

   Apply online and respond to supplementation requests: Apply for the startup certificate through the Startup Confirmation System and for the SME certificate through the SME Status Information System. If a document review, on-site inspection or request for materials follows, supplement with materials of the same base date, and if you disagree with the startup confirmation result, file an objection within 7 days of receiving notice.

6. 06

   Manage validity and renewal: The startup certificate is valid for 3 years, and the SME certificate for 1 year from the day 3 months after the end of the preceding business year (April 1 to March 31 of the following year for companies with a December fiscal year-end). A startup confirmation obtained by false or other fraudulent means is cancelled, and the company cannot reapply for 1 year from the cancellation.

Filing route

Filing route

Deadlines & processing notes

Deadlines & processing notes

Basic documents

Basic documents

For companies with a December fiscal year-end the SME certificate expires on March 31, so submitting last year's certificate to a tender or support program closing after April may be treated as missing documents; obtain a new one as soon as the year-end accounts are finalized.