South Korea company registration

Doing business in South Korea

Since 2003, Healy Consultants Group 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 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 reserved our Client’s preferred business name with the Ministry of Strategy and Finance.
  - Healy Consultants Group 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 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 to timely accurately and completely discharge their monthly and quarterly and annual legal, accounting, audit and tax obligations;
  - Healy Consultants Group asked our Client for a professional reference;

Doing business in South Korea

Case study

Setting up a South Korean LLC for crypto trading

Engagement planning

Company incorporation

Post company incorporation

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