Business confirmation certificates

Requirements for the Disabled-Owned Business Confirmation Certificate — Representative Requirements, Employment Ratio, On-Site Inspection

With a disabled-owned business confirmation certificate, a business can receive public procurement benefits such as negotiated contracts with public institutions and bonus points in competitive bidding. For a sole proprietor, the representative must be a registered person with a disability. For a corporation, a person with a disability must be registered as an executive officer with authority to represent the company, and if there are co-representatives, the representative with a disability must hold more voting shares than the representative without a disability. The on-site inspection checks actual management, to confirm that the business is not one that has merely borrowed the name of a person with a disability.

Procedure

  1. 1. Check the requirements by type of business

    For a sole proprietorship, the business must be registered in the name of the person with a disability. For a corporation, a person with a disability must be registered as an executive officer with authority to represent the company, and if there are co-representatives, the representative with a disability must hold more voting shares than the representative without a disability. For a cooperative, persons with disabilities must make up a majority of the members and hold a majority of the contribution units, and the chairperson must be a person with a disability.

  2. 2. Check the employment ratio

    The requirement that persons with disabilities make up 30% or more of employees applies only to medium enterprises; small enterprises under the Framework Act on Small and Medium Enterprises (determined by sales thresholds for each industry) are exempt from the employment ratio requirement. First determine by sales whether the business is a small enterprise, and if it is a medium enterprise, calculate the employment ratio from the register of workers.

  3. 3. Prepare documents and apply online

    Apply through the Public Procurement Information Network for SMEs (SMPP). The processing period is 7 days, but it is extended if supplementation of documents is requested. Prepare a business registration certificate issued within the last 3 months.

  4. 4. Prepare for the on-site inspection

    The inspection looks at whether the representative actually approves decisions and signs contracts. It is important to leave the representative's signature and approval records on employment contracts, lease agreements and contracts with business partners, and for the representative to personally manage the corporate bank account and the means of authentication for corporate online banking.

Required documents

  • Business registration certificate (issued within the last 3 months)
  • Certificate of value-added tax base
  • Certificate of all registered matters of the corporation (for corporations)
  • Statement of changes in stocks, etc.; register of shareholders or members (for corporations)
  • Certificate of disability
  • Partnership agreement (for joint business operators)
  • For medium enterprises: statement of withholding tax payment status, register of employees with disabilities

Fees

There is no official fee for issuance of the certificate itself. Agency fees in the industry are around several hundred thousand won and vary depending on whether the corporation's shareholding structure needs to be put in order or materials need to be prepared for the on-site inspection. We will inform you after consultation, based on the status of the business.

Legal basis and review date

  • Act on the Facilitation of Entrepreneurial Activities of Persons with Disabilities, Article 2
  • Act on the Facilitation of Entrepreneurial Activities of Persons with Disabilities, Article 9-2
  • Act on the Facilitation of Entrepreneurial Activities of Persons with Disabilities, Article 18-2
  • Enforcement Decree of the Act on the Facilitation of Entrepreneurial Activities of Persons with Disabilities, Article 2
  • Enforcement Decree of the Act on the Facilitation of Entrepreneurial Activities of Persons with Disabilities, Article 11-2
  • Enforcement Decree of the Act on the Facilitation of Entrepreneurial Activities of Persons with Disabilities, Article 11-3

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

  • A structure in which only the name is borrowed can lead to cancellation of the confirmation and disadvantages in public contracts.

Frequently asked questions

What are the requirements for the disabled-owned business confirmation certificate?
For a sole proprietor, the representative must be a registered person with a disability. For a corporation, a person with a disability must be registered as an executive officer with authority to represent the company, and if there are co-representatives, the representative with a disability must hold more voting shares than the representative without a disability. A medium enterprise must also meet the requirement that persons with disabilities make up 30% or more of its employees; small enterprises are exempt from this requirement.
How long is the disabled-owned business confirmation certificate valid?
It is valid for 3 years from the date of issuance. You must obtain confirmation again before expiry so that public procurement benefits are not interrupted.
What does the on-site inspection of a disabled-owned business look at?
It checks whether the representative with a disability actually manages the company. It looks at signatures on contracts, approval records, and who manages the bank account and the means of financial authentication.
What are the benefits of the disabled-owned business confirmation certificate?
Negotiated contracts with public institutions become possible, and bonus points are given in competitive bidding. The system under which public institutions give purchasing priority to products of disabled-owned businesses can also be used.
Can a corporation with co-representatives be a disabled-owned business?
Yes, but the representative with a disability must hold more voting shares or a larger equity interest. Check the shareholding structure first.

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.