South Korea company registration

South Korea company registration

Since 2003, Healy Consultants has been efficiently and effectively assisting our Clients with i) South Korea business registration ii) business licensing iii) South Korea business banking solutions iv) visa options and staff recruitment strategies and v) workspace rental solutions.

 LLCFree zone CompanyBranch OfficeRep OfficeLLP
Best use of company?SMEsInternational TradingBank branchesMarketingProfessional Services
Legally tax exempt if properly structured?NoYes (for 3 years)NoYesNo
Corporate bank account location?Woori BankCitibankKEB Hana BankSCB KoreaWoori Bank
Client must travel to Korea?NoNoNoNoNo
Can secure trade finance?YesYesYesNoNo
Limited liability entity?YesYesNoNoYes
GST payable on sales to local customers10%10%10%No10%
Withholding tax on payments to overseas shareholders?22%NoNoNo22%
Average total engagement costs?US$9,953US$9,953US$10,703US$9,343US$9,953
Average total engagement period?4 weeks4 weeks5 weeks5 weeks4 weeks
LLCFree zone CompanyBranch OfficeRep OfficeLLP
Accounting and tax considerations
Statutory corporation tax payable?20%0% (for 3 years)20%0%0%
Must file an annual Korea tax return?YesYesYesNoNo
Effective corporation tax rate on net profits of US$250,00013%0% (for 3 years)13%0%0%
Must file annual financial statements?YesYesYesNoNo
Investment income is legally tax exempt in Korea?NoYes (for 3 years)NoNoNo
Access to double taxation treaties?YesYesYesNoNo
This entity enjoys Government incentives?YesYesYesNoNo
Monthly GST reporting to the Government?NoNoNoNoNo
Legally tax exempt entity?NoYes (for 3 years)NoYesYes (if no services are provided in Korea)
Dividends received are legally tax exempt?NoNoNoNoNo
LLCFree zone CompanyBranch OfficeRep OfficeLLP
Company registration
Korea resident director\partner\manager required?NoNoYesYesNo
Minimum number of shareholders\partners?11Parent CompanyParent Company2
Minimum number of directors/managers?11111
Minimum paid up share capital?US$1US$90,000US$1US$1US$1
Shelf companies available?YesNoNoNoNo
Time to incorporate a new entity?2 weeks2 weeks3 weeks3 weeks2 weeks
Can easily convert to a local PLC?YesNoNoNoNo
Can have preference shareholders?NoNoNoNoNo
LLCFree zone CompanyBranch OfficeRep OfficeLLP
Business considerations
Can invoice local customers?YesYesYesNoYes
Can hire local staff?YesYesYesYesYes
Can rent local office space?YesYesYesYesYes
This entity can secure a residence visa for business owner?YesYesYesNoNo
Good entity for trademark registration?YesYesYesNoNo
LLCFree zone CompanyBranch OfficeRep OfficeLLP

Korea has signed free trade agreements?Yes
This country is a member of WIPO and TRIPS?Yes
The country is a member of the ICSID?Yes
Average customs duties suffered?8%

 LLCFree zone CompanyBranch OfficeRep OfficeLLP
Government foreign investment approval is required?NoYesNoNoNo

Average monthly office rental? (US$ per sq m)US$24
Minimum statutory annual salary?US$11,294
Average monthly US$ salary for local employees?US$3,180
Korea Won deposit interest rate? (1 year average)2%
US$ deposit interest rate? (1 year average)0.34%
Overseas remittance currency controls?No
Public register of shareholders and directors?Yes
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Good
Crowd funding available in this country?Yes

Contact us

For additional information on our company registration services in South Korea, please email us at Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi