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South Korea company registration

DOING BUSINESS IN SOUTH KOREA IN 2023

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Since 2003, Healy Consultants Group PLC 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.

Compare different South Korea entities LLC FTZ company Branch Office Rep Office Cryptocurrency LLC
Entity locally known as Yuhan Hoesa Free Economic Zone Company Branch office RO Yuhan Hoesa
Best use of company? SMEs International Trading Bank branches Marketing Cryptocurrency trading
Legally tax exempt if properly structured? No Yes (for 3 years) No Yes No
Corporate bank account location? Woori Bank Citibank KEB Hana Bank SCB Korea NH Bank
Client must travel to Korea? No No No No No
Can secure trade finance? Yes Yes Yes No Yes
Limited liability entity? Yes Yes No No Yes
GST payable on sales to local customers 10% 10% 10% No N/A
Withholding tax on payments to overseas shareholders? 22% No No No 22%
Average total engagement costs? US$13,093 US$13,943 US$13,693 US$12,333 US$29,560
Average total engagement period? 4 weeks 4 weeks 5 weeks 5 weeks 3 months

See full table

Accounting and tax considerations LLC FTZ company Branch Office Rep Office Cryptocurrency LLC
Statutory corporation tax payable? 20% 0% (for 3 years) 20% 0% 20%
Must file an annual Korea tax return? Yes Yes Yes No Yes
Effective corporation tax rate on net profits of US$250,000 13% 0% (for 3 years) 13% 0% 13%
Must file annual financial statements? Yes Yes Yes No Yes
Investment income is legally tax exempt in Korea? No Yes (for 3 years) No No No
Access to double taxation treaties? Yes Yes Yes No Yes
This entity enjoys Government incentives? Yes Yes Yes No Yes
Monthly GST reporting to the Government? No No No No No
Legally tax exempt entity? No Yes (for 3 years) No Yes No
Dividends received are legally tax exempt? No No No No No
Company registration LLC FTZ company Branch Office Rep Office Cryptocurrency LLC
Korea resident director\partner\manager required? No No Yes Yes No
Minimum number of shareholders\partners? 1 1 Parent Company Parent Company 1
Minimum number of directors/managers? 1 1 1 1 1
Minimum paid up share capital? US$1 US$90,000 US$1 US$1 US$1
Shelf companies available? Yes No No No Yes
Time to incorporate a new entity? 2 weeks 2 weeks 3 weeks 3 weeks 2 weeks
Can easily convert to a local PLC? Yes Yes No No Yes
Can have preference shareholders? No No No No No
Business considerations LLC FTZ company Branch Office Rep Office Cryptocurrency LLC
Can invoice local customers? Yes Yes Yes No Yes
Can hire local staff? Yes Yes Yes Yes Yes
Can rent local office space? Yes Yes Yes Yes Yes
This entity can secure a residence visa for business owner? Yes Yes Yes No Yes
Good entity for trademark registration? Yes Yes Yes No Yes

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%

  LLC FTZ company Branch Office Rep Office Cryptocurrency LLC
Government foreign investment approval is required? No Yes No No Yes, if share capital is more than US$100,000

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 No No No Yes

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

  • Case study

    Setting up a South Korean LLC for crypto trading

    In April 2021, our Client, a USA based company approached Healy Consultants Group PLC to assist with setting up a South Korean LLC for crypto trading.

    Our Client provided all the due diligence documents required for company registration, signed the engagement letter and paid the first installment of our fees.

    • Engagement planning

      • Our Client travelled to South Korea and was in quarantine for 2 weeks.
      • Meanwhile, Healy Consultants Group PLC reserved our Client’s preferred business name with the Ministry of Strategy and Finance.
      • Healy Consultants Group PLC simultaneously prepared the registration forms to be signed by the Client
      • Following completion of quarantine, we arranged for our client to meet with our Korean partner for signature of the registration documents.

    • Company incorporation

      • Our Client met with our Korean partner at his office and signed all the registration documents.
      • Thereafter, we submitted them to the Ministry of Strategy and Finance to proceed with company registration.
      • Two weeks thereafter, Healy Consultants Group PLC obtained the Certificate of Incorporation and Certificate of Business Tax registration documents.

    • Post company incorporation

      • Healy Consultants Group then translated the company documents collated all corporate documents including certificate of incorporation, Certificate of Business Tax registration and company seal and handed them over to the Client at our Korea partner’s office.
      • Our Client could now proceed with bank account opening sign contracts, issue invoices, receive funds and pay suppliers through their newly-opened corporate bank account;
      • Our Client asked Healy Consultants Group PLC to timely accurately and completely discharge their monthly and quarterly and annual legal, accounting, audit and tax obligations;
      • Healy Consultants Group PLC asked our Client for a professional reference;

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Contact us

For additional information on our company registration services in South Korea, please contact our in-house country expert, Ms. Lee Wen Bin, directly:
Consultant at HC - Wen Bin
  • Ms. Lee Wen Bin
  • Client Engagements Department, Deputy Director
  • Contact me!
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