Teach you how to register a Korean company from 0 to 1!

The advantages of registering a Korean company

There are many advantages to registering a South Korean company. Firstly,  in order to attract foreign investment and promote development, South Korea  provides a large amount of policy support for newly established enterprises,  such as tax exemptions for those who meet the conditions, thereby reducing  the operating costs of the enterprise. Secondly, South Korea's automotive and  parts industries are globally leading, which brings huge potential to related  enterprises. In addition, South Korea has a high population density, young  people love online shopping, and the consumption level is even higher.

In summary, now is indeed the golden age for registering companies in South  Korea. Register early and enjoy the dividends!

How to choose the type of Korean company?

To conduct business in Korea, registering a Korean company is essential. The  first step in registering a Korean company is to choose the company type! How  to choose a company type? Which one is better? Here are 5 types of Korean companies:

company with limited liability

There are many types of registered enterprises. A company with minority ownership  can accommodate up to 50 shareholders. Shareholders are not responsible for  any debts or obligations incurred by the company, and their liability is limited  to their share capital. There are few requirements for opening a limited liability  company in Korea, and at least one director of any nationality is required.  It is recommended to have a registered capital of 1 million Korean won for  a limited liability company in Korea.

stock company

The most common business entity in South Korea, and also a popular business  entity for foreign investors to establish subsidiaries in South Korea. It is  a commercial entity that allows for the public issuance of stocks. In a joint-stock  company, shareholders have limited liability to the company, which depends  on their capital investment. In addition, with the approval of the board of  directors, stocks can also be freely transferred. Therefore, a shareholders'  meeting must be held at least once a year.

Partnership relationships

A partnership is a business structure in which two or more individuals work  together and distribute all profits and losses from the business. There are  three types of partnerships in South Korea, namely general partnerships (Hapmyeong  Hoesa), limited partnerships (Hapja Hoesa), and limited liability partnerships  (Hapja Johap).

branch

If you want to expand the Korean market, your company can open a branch of  a foreign company in Korea. As the branch is an extension of the parent company,  it can only carry out business activities similar to those of the parent company.  Therefore, the parent company is fully responsible for all debts incurred by  the Korean subsidiary. In addition, there is no limit to the number of investments  or ownership.

representative office

Many foreign trade business owners start from representative offices (also  known as liaison offices) because their registration procedures are simple.  The representative office is applicable to foreign investors who do not intend  to conduct business in Korea. Representative offices are not allowed to conduct  commercial activities or generate income in Korea, such as selling goods or  services. They can engage in non-commercial activities such as market research  and development.

Korean company registration process

The next step after selecting the company type is to conduct pre-approval  of the company name, ensuring that the selected name has not been used by other  companies and complies with relevant regulations in Korea, in order to prepare  the materials for registering the company application.

Preparation materials:

Materials for Korean company name, determination of registered capital, determination  of shareholders and directors, determination of registered address, determination  of business scope, etc

Corporate Notarization/Hague Certification

Notarize at the notary office in the city where the legal representative is  located, and obtain dual authentication from the foreign affairs office and  embassy or Hague authentication. The authentication documents include the legal  representative's identity certificate, employment commitment letter, seal declaration  letter, power of attorney, etc. (depending on the actual situation of the seller)

Registration information

Successfully completed the registration of legal representative and business  tax registration, and the registration of the Korean company has been completed!

Key point: Free opening of Coupang local stores, registration success rate  of 100%!

How to maintain a Korean company after registration?

After registering a Korean company, registration and maintenance are also  crucial! South Korea does not require annual review, only tax declaration according  to requirements. In the first year, only accounting and tax reporting are required.  Subsequent years will require registration address renewal and accounting and  tax reporting. Failure to handle this in a timely manner will affect the operation  of the store!

South Korea is divided into two types of taxes, value-added tax and corporate  tax:

value added tax:

1】 It refers to the declaration and payment of taxes on the additional value  generated during the provision of goods or services, as well as the import  of goods.

2】 Tax rate of 10%

3】 Sellers are required to declare once every quarter, while small and micro  enterprises can declare on a semi annual basis and implement a deduction system.  The declaration months are January, April, July, and October each year, and  the declaration must be completed before the 25th of that month.

Corporate tax:

1】 Also known as corporate income tax, it refers to the tax levied on the  income of legal persons. The taxable objects of corporate tax include for-profit  legal persons and non-profit legal persons. Corporate associations and foundations  should also be taxed like ordinary legal persons.

2】 Levying based on the company's net profit. The tax for net profits less  than 200 million Korean won is 10%, the tax for profits between 200 and 200  billion Korean won is 20%, and the tax for profits above 20 billion Korean  won is 22%.

3】 The seller declares once a year, according to the natural year. The deadline  for the final settlement and declaration of corporate income tax for legal  entities or branches is March 31st of the following year.