Do you want to set up an offshore company? Here are several things to consider while establishing offshore company in South Korea.
An offshore corporation is one that was formed in a country other than the one where its headquarters are located. The offshore company's location will be distinct from the country's head/main office. When a firm owner develops or expands the same company in a different country, the company is considered an offshore company.
The offshore company is subject to the regulations, laws, and tax authorities of the foreign country in which it is registered rather than the regulations, laws, and tax authorities of the country in which its founders/owners reside.
Offshore Company Formation Requirements
- What are the requirements for a company formation in South Korea?
The rules and regulations will be determined by the country or territory in which your company is established. Furthermore, the possible constructions will be determined by the jurisdiction. Thus you must first choose a location. After deciding on your jurisdiction, you must decide on your corporate structure.
Entity Types in South Korea
As a beginner in the Korean business sector, you will need to gather as much knowledge as possible on the many legal forms available in the country. The most common and well-known forms of enterprises that can be established in Korea are FDI Companies, Limited Liability Companies, Branch Offices, and Liaison Offices.
You can proceed with the registration of your South Korean corporation after settling on the company's business entity. You have 20 days after starting your business to apply for company registration. If there are multiple businesses to register, each one must be registered separately.
Factors to Consider When Doing Business In South Korea
Product Licensing and Approval
Some products and services may require licenses and permissions to import/export or buy/sell. Ascertain that all criteria of customs and import rules are met legally.
Cultural and Language Factors
Understanding and adapting culture and language are critical while doing business in other nations. Respect for age and seniority is fundamental in Korean culture, with social interactions influenced by the social order. All official/legal paperwork will be in Korean, with certain banks accepting English documents.
Tax Registration
Corporate tax in South Korea is progressive, with enterprises required to pay a corporate income tax rate of 10% on the first KRW 200 million of income. All South Korean firms must register for Value Added Tax (VAT) with the National Tax Service within 20 days of opening. South Korea's typical VAT rate on goods and services is 10%.
Conclusion
If you are familiar with the incorporation process, forming a company in South Korea is simple. J&J Korea tries to give our clients a smooth experience while establishing a business in South Korea. From the consultation stage through selecting the correct type of offshore company formation, essential documents and certificates, power of attorney, and more, our team of professionals will assist you.
Contact us for more information on the incorporation process and the comprehensive service package we provide to our clients.