South Korea Company Formation |
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South Korea company formation is an excellent way to legitimately conduct business in South Korea, one of the most highly advanced Asian economies. The following information will help you determine whether South Korea company registration is the optimum corporate structure to meet your business objectives: |
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Advantages of South Korea Company Registration |
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Company registration in South Korea allows 100% foreign ownership. The minimum number of shareholders required for a South Korea company is one, for a Yuhan Hoesa (limited liability company).
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South Korea Limited Liability Company (LLC) formation requires a minimum of one director, with no restrictions on nationality. |
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South Korea is a member of the Organisation for Economic Cooperation and Development (OECD) and has a high gross domestic product (GDP). As such, the local market is attractive for foreign investors planning for a South Korean company.
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South Korean corporation tax has become less of a burden through the corporation tax rate cut from 25% to 20% for the tax base of 200 million Korean Won (KRW) (approximately US$170,000). A rate of 10% applies if income is 100 million KRW (approximately US$85,000) or less. Non-resident individuals are liable to personal income tax only on assessable income derived in Korea.
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5.
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Non-resident individuals are liable to personal income tax only on assessable income derived in Korea.
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South Korea is positively ranked as the world's 34th-freest economy in the Heritage Foundation's 2013 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.
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According to the Doing Business 2012 survey by the World Bank, South Korea is the world's 8th-easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business. |
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It is easy to open global corporate bank accounts to support South Korea company formation. Healy Consultants works with internationally recognised banks such as Industrial Bank Of Korea, HSBC Bank, and Korea Exchange Bank to provide corporate bank account services. |
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Disadvantages of South Korea Company Registration |
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1. |
South Korea business registration is difficult for foreign investors who have no working knowledge of the Korean language. All company documentation is in Korean and official translations are expensive. |
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2. |
A minimum capital of 10 million KRW (approximately US$10,000) is required for starting a South Korean business. |
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After South Korea company registration, all companies are required to maintain accounts and keep a register of shareholders at the registered office. These records must be kept in Korean. |
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Annual tax returns must be filed to the National Tax Service of South Korea after starting a business in South Korea. |
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South Korea is negatively ranked as the 45th-least corrupt country in the 2012 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. |
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A lease agreement for a Korea office is required by foreign investors before completing company incorporation in South Korea. A virtual office is not allowed in South Korea. |
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Success Tips on doing business in South Korea; |
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Government agencies play an important role in doing business in South Korea, like all countries. All businesses deal with government agencies on a regular basis. This is where foreigners setting up a business in South Korea should exercise restraint and be patient as much as possible as Government authorities would always have the final say in any matter. |
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Your joint venture partner or South Korean shareholder must not merely be a nominee for the sake of meeting the rules of foreign company incorporation. You should choose a partner that actually brings a lot to the table, including local knowledge necessary for your business to succeed in South Korea.
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When you’re starting a new business it’s important to find out which South Korean registrations and licenses apply to your Firm. This can be a complex area; as local, state, territory and federal governments handle registration and licensing for various aspects of your business. |
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Other South Korea Company Registration Support Services |
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Healy Consultants offers a range of South Koreas services to support business registration in South Korea, including accounting and taxation, IT support and obtaining corporate finance. |
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Healy Consultants also provides tailored packages for clients that a South Korean virtual office for invoicing purposes.
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Following South Korean business formation, entrepreneurs should consider the Intellectual Property (IP) laws of South Korea. Healy Consultants will assist our Clients with trademark and patent registration. Registering your brand, trademark and designs is important in South Korea. Note that brands and trademarks can only be registered in the name of South Korean residents or South Korean registered companies. |
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There are government grants and other incentives available to assist business in South Korea. These include employee development, innovation and exporting. Healy Consultants assists our Clients locate the grants and assistance programs most relevant to their South Korean company. |
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Healy Consultants offers a comprehensive range of research services for client registering a South Korean company. These include i) industrial or business analysis ii) economic and political overview iii) competitor analysis iv) customer analysis v) regulation analysis vi) market entry strategies vii) business partner matching |
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| Contact Us | ||||||||||||||||||||
For more information about South Korea business registration, contact email@healyconsultants.com or telephone us at (+65) 6735 0120. |
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Buy Healy Consultants' Asia Business Set Up book. To order, call (+65) 6735 0120 or contact email@healyconsultants.com
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