South Korea company registration

DOING BUSINESS IN SOUTH KOREA IN 2019

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.

Summary table of South Korea company registration

Summary	LLC	Free zone Company	Branch Office	Rep Office	LLP
Best use of company?	SMEs	International Trading	Bank branches	Marketing	Professional Services
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	Woori Bank
Client must travel to Korea?	No	No	No	No	No
Can secure trade finance?	Yes	Yes	Yes	No	No
Limited liability entity?	Yes	Yes	No	No	Yes
GST payable on sales to local customers	10%	10%	10%	No	10%
Withholding tax on payments to overseas shareholders?	22%	No	No	No	22%
Average total engagement costs?	US$11,953	US$12,953	US$12,703	US$11,343	US$9,953
Average total engagement period?	4 weeks	4 weeks	5 weeks	5 weeks	4 weeks

See full table

Accounting and tax considerations	LLC	Free zone Company	Branch Office	Rep Office	LLP
Statutory corporation tax payable?	20%	0% (for 3 years)	20%	0%	0%
Must file an annual Korea tax return?	Yes	Yes	Yes	No	No
Effective corporation tax rate on net profits of US$250,000	13%	0% (for 3 years)	13%	0%	0%
Must file annual financial statements?	Yes	Yes	Yes	No	No
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	No
This entity enjoys Government incentives?	Yes	Yes	Yes	No	No
Monthly GST reporting to the Government?	No	No	No	No	No
Legally tax exempt entity?	No	Yes (for 3 years)	No	Yes	Yes (if no services are provided in Korea)
Dividends received are legally tax exempt?	No	No	No	No	No
Company registration	LLC	Free zone Company	Branch Office	Rep Office	LLP
Korea resident director\partner\manager required?	No	No	Yes	Yes	No
Minimum number of shareholders\partners?	1	1	Parent Company	Parent Company	2
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	No
Time to incorporate a new entity?	2 weeks	2 weeks	3 weeks	3 weeks	2 weeks
Can easily convert to a local PLC?	Yes	No	No	No	No
Can have preference shareholders?	No	No	No	No	No
Business considerations	LLC	Free zone Company	Branch Office	Rep Office	LLP
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	No
Good entity for trademark registration?	Yes	Yes	Yes	No	No

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	Free zone Company	Branch Office	Rep Office	LLP
Government foreign investment approval is required?	No	Yes	No	No	No

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