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

Procedure

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

• Startup company confirmation application (Enforcement Rule of the Support for Small and Medium Enterprise Establishment Act, Form No. 2; filed electronically through the startup company confirmation system)
• Business registration certificate (for a corporation, a certified copy of the corporate register)
• Sales materials such as financial statements for the preceding year or a certificate of value-added tax base
• Materials confirming the number of regular workers (such as a list of persons enrolled in the 4 major social insurance schemes)
• If there was a conversion to a corporation or a business succession, materials showing how it took place

Fees

There is no issuance fee for the startup company confirmation certificate or the SME confirmation certificate. Agency fees in the market are generally in the range of tens of thousands of won to several hundred thousand won, and vary if an assessment of affiliated enterprises or a review of startup recognition is needed. We will tell you the exact amount after a consultation, based on the business history.

See fees and official charges for this service →

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 2026-10-05

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