Understand the Jurisdictions Setup Requirement Before Proceed Your South Korea Company Formation
South Korea is strategically located between China and Japan – two of the world’s biggest economies, and this makes it an ideal location for investors keen on getting into the Asian markets. If you are planning to start a business in South Korea, then you will be glad to know that any foreigner or foreign company can start a business in the country with relative ease. The types of companies and businesses and companies that can be started vary depending on the type of activities as well as the relevant laws and regulations governing that particular sector. At 3E Accounting, we specialize in company formation and business registration for foreign entities.
We help throughout the entire company formation process to ensure your success. We begin with an initial consultation to help you determine the kind of company you are interested. Next, our assistance extends to enabling you to get all the necessary documents and certificates, including visa application for your foreign managers and staff. To enable us to offer quality and reliable corporate business formation services in South Korea, we have a team of licensed Korean lawyers, accountant and tax experts who will ensure that proper due diligence is observed and your South Korea company formation is done according to the dictates of the relevant Korean laws.
The Types of Corporate Entities in South Korea
Foreigners or foreign companies without local residency in South Korea have three main options for starting or registering a business in the country. They include the following:
Local Corporation/FDI Company
This type of South Korea company formation is normally for local companies, but in instances where the ownership of the company belongs to a foreigner or a foreign company, it is categorized as a Foreign Direct Investment Company, FDIC.
Under the South Korean laws, there is a myriad of benefits that come with registering an FDI company compared to the regular companies. However, such an investment is only allowable in one of the following businesses:
- General Partnership Company
- Limited Liability Company
- Limited Partnership Company
- Joint Stock Company
- Private Limited Company
- Limited Liability Partnership
With our services, we will advise you on the most appropriate type of business you need to form from the above after we know about the exact nature of the activities your business deals with.
Branch Office
The FDI Company doesn’t necessarily function as a local corporation with foreign ownership. This is why a Branch Office can be an alternative since it wholly serves as a foreign corporation where both the Korean branch and the foreign headquarters are a single legal entity. In South Korea, Branch offices may carry out profit-making activities. Further, they are also subject to the same tax laws and rates applicable to local Korean companies.
Liaison Office
Just like the Branch Office, a Liaison Office is also a foreign corporation in South Korea. However, it may not carry out any profit-making activities.
On behalf of the mother company, it can only conduct non-sales activities such as:
- business development
- research and development
- advertisement
- market research
Start Your Company in South Korea Today
Get in touch with us to start with the process of South Korea company formation. We will avail every resource you need to make the formation process simple, but efficient. Contact us today for more info.