Understand the Jurisdictions Setup Requirement Before Proceed Your Company Registration in South Korea
If you are looking for information on company registration in South Korea, then you have landed on the right page. Also known as the Asian Dragon, South Korea has slowly grown to become a global economic power. It turns into a real magnet for investors interested in accessing more markets in the Asian region. The local economy is not only prosperous but also, it is very friendly to foreign investors.
Besides, the government has taken a series of measures to promote entrepreneurship and foreign investments in the country. Thus, if you want to start business in South Korea, now would be an ideal time to incorporate. Some of the flourishing sector ripe for foreign investments include automobiles, engineering, food processing, and electronics. At 3E Accounting, our duty is to help you in the smooth process of registering your company in South Korea.
Types of Businesses You Can Incorporate in South Korea
There are seven main types of businesses you can potentially consider. They include the following:
- Private Limited Company – yuhanchaek-inhoesa
- Limited Partnership Company – hapjahoesa
- General Partnership Company – hapmyunghoesa
- Limited Liability Company – yuhanhoesa
- Joint Stock Company – chusikhoesa
- Branch office
- Representative/Liaison Office
The ultimate business entity you incorporate will depend on your business goals, the specific rules and regulations governing the operations of businesses in your preferred industry, and the tax implications.
At 3E Accounting, we have very qualified business incorporation executives. They will accord you with all the advice you need to choose the right business entity. However, most of the foreign investors interested in starting ventures in South Korea usually begin by registering a liaison office since this does not require any complicated registration procedure. All you need is to register and seek approval from the tax authorities and the national bank.
Some foreigners also prefer kicking off their investment in South Korea by opening a branch office – which is also relatively easy to open. To open a branch office, an investor must register the branch with a specified foreign exchange bank, and then complete the business registration process in the court.
For investors interested in establishing a commercial entity or a limited liability company, a minimum share capital of 50 million Korean Won will be necessary. Additionally, a founder must be clearly nominated at the time of registration, and a notary must certify a company status. For such companies, the day to day running is always in the hands of the board of directors.
The Tax System for Foreign Companies in South Korea
The country happens to be one of the countries with a territorial tax system as far as company registration in South Korea is concerned. With this system, every foreign company operating in Korea will be taxed only on the income generated from domestic sources. The companies are also liable for value-added tax which has to be reported to the tax authorities within twenty days following the commencement of operations. The VAT rate in South Korea is at 10%.
How 3E Accounting Can Help You
At 3E Accounting, we have every expertise and can offer sound and reliable advice on company registration in South Korea. Our team comprises of experienced accountants, tax experts and attorneys who will not just help you choose the most appropriate business entity to register in South Korea, but also will guide you through the registration process. We will ensure that you meet all the requirements, including compliance with industry-specific guidelines so that nothing will stop you from having your company incorporated. Contact us now and learn more about how our incorporation services will be of help to you.