South Korea Company Formation |
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South Korea company formation is an excellent way to legitimately conduct business in this highly advanced Asian economy. The following information will help you determine whether South Korea company formation is the optimum corporate structure to meet your business objectives: |
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Advantages of South Korea Company Formation |
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1. |
South Korea company formation allows 100% foreign ownership. The minimum number of shareholders required for South Korea company formation is one for a Yuhan Hoesa (limited liability company).
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2. |
South Korea Limited Liability Company (LLC) formation requires a minimum of one director, with no restrictions on nationality. |
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3.
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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 South Korea company formation.
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4.
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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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6.
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South Korea is positively ranked as the world's 35th-freest economy in the Heritage Foundation's 2011 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 2011 survey by the World Bank, South Korea is the world's 16th-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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8. |
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 Formation |
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1. |
South Korea company formation 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 South Korea company formation. |
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3. |
After South Korea company formation, 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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4. |
Annual tax returns must be filed to the National Tax Service of South Korea following South Korea company formation. |
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South Korea is negatively ranked as the 43rd-least corrupt country in the 2011 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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| Contact Us | |||||||||||||||||||
For more information about South Korea company formation, 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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