A Quick Guide For Starting A Business In South Korea
Updated: Sep 5
Are you looking for a perfect geographical location to set up your company? South Korea is the best place for this. Undoubtedly, the country's economy is the 10th largest economy in the world. Here is some good news for all foreigners. It is possible to start a company in South Korea. There are some options that foreign companies can select for their business registration in Korea.
Before knowing the possible options, there are some things that you should consider. It will help you to understand better at an early stage. Whether your business is small or large, you must know these factors. Find the primary considerations below and see what you should not avoid. Let's get into this!
Consider These Factors
The first factor is the business factor. It includes the industry and type of business. With this, check the existing trade agreements and relationships.
All businesses should ensure that they import their products legally to South Korea. For this, you must have valid licenses and permits.
One of the essential factors is the culture of the South Korea company registry. As it is a homogenous country and can be challenging to set up a company for various business visitors.
Similarly, language is also the main thing to consider when setting up a business. Many international businesses are often done in English, but with the local language, it will be easier.
Lastly, the Korean government has established numerous free economic zones. These are tax benefits and additional incentives for foreigners wanting to start a business in South Korea.
Now, let's move on to the business opportunities foreigners have. We are going to share brief details of each option with you. Here we have the three main options for business registration Korea:
According to Foreign Investment Promotion Act, any foreign-owned local enterprise is called "foreign investment" in South Korea. There will be no restriction on the name of the company. There is no need for minimum capital for the setup of a company. However, you must invest a minimum of HRW 100 million in establishing an FDI company.
Moreover, the companies are liable for taxation in Korea. They are also legally independent but limited to domestic corporations. No Korean resident can be a shareholder for them.
The following business option is to open a branch in South Korea. It will be to generate profits in Korea. This type of South Korea companies registry is not locally recognized. These are not considered direct foreign direct investments. InvestKorea is a national investment promotion agency that states foreign branches and headquarters are treated as a single legal entity. At the same time, there will be no limit on the investment amount.
According to InvestKorea, the liaison office has to make the registration at the tax department. After registering, the office gets its specific number, considered equivalent to business registration. Moreover, a liaison office does not have any restrictions on foreign ownership.
If you want to start a business, you might need the help of professionals. They will help you to enter the Korean business world. J&J Korea is a leading company that helps its clients in business registration in Korea.
PLUS: Video for EASY Guide!