How to get a business registration certificate in South Korea?
South Korea's economy is growing at a steady pace, making it one of the most attractive markets for business expansion.
The first mandatory step is to register and obtain a licence. Without registration, you won't be able to: sign contracts; advertise your business on local social media and websites such as Naver or KakaoTalk; or list your products on Korean marketplaces. Foreign suppliers, large chains and retailers often use the dropshipping business model to deliver goods to and from Korea. How do I get a Korean business registration number?
You are a foreigner
Foreigners must obtain one of the following visas before registering a business: an F visa, a D-8-4 start-up visa or a D-8 corporate investor visa. The Foreign Investment Promotion Act (FIPA) allows you to incorporate a company locally under certain conditions. Under the FIPA, if a foreigner has invested at least 100 million won for management participation and has acquired at least 10% of the voting shares of a company, it is recognised as a foreign-invested company. Foreigners can contact the Seoul Global Centre for all registration issues and problems.
F Visa
If you have an F-2, 4, 5, 6 visa, it is very easy to register a business (sole proprietorship). You will need to provide an ID document and a lease agreement to the local tax office. This can also be done online through the National Tax Service (NTS) Hometax website. Hometax in Korea is used to pay taxes, receive tax refunds and generate electronic invoices.
As the Hometax website is only available in Korean, the international online platform Halla Systems Co. Ltd. helps foreign companies translate their documentation, set up their business and process payments.
OASIS Visa
Also known as a start-up visa or D-8-4, this visa is granted to foreigners who decide to start a business in Korea based on outstanding ideas and technologies. It can be obtained by accumulating a certain number of points. Alternatively, a minimum investment of $100,000 is required to obtain the appropriate visa (D-8, Corporate Investor) and certificate.
Types of Korean companies
There are several types of business structures in Korea that foreign entrepreneurs typically choose:
sole proprietorships
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Partnerships
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Limited liability companies
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Corporation or joint stock company
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Limited Liability Company
A foreign-invested company is a business that can be classified as a partnership, limited liability company, joint stock company or foreign branch under Korean law.
A sole proprietorship is suitable for self-employed individuals and small business owners.
Small and medium-sized enterprises
It is fairly easy to register a sole proprietorship and obtain a business licence in Korea. All you need to do is submit an application to the district tax office, along with an office lease and an ID card (foreigner registration card. A company can be registered at your home address and for more than one person. Note that the tax rate can be quite high on incomes of $50,000 or more.
According to a World Bank report, starting a business in Korea costs an average of 4.9 million won ($4,125) and takes 8-9 days.
Taxes
VALUE ADDED TAX. VAT returns are filed every 3 months. Individual entrepreneurs (sole traders) VAT return - every 6 months.
Annual tax returns. Corporations, sole proprietors and contractors must file an annual tax return by 31 March.
Want to promote your product?
You will need a digital marketing registration to advertise on websites and social media. You will need two things to register: a business registration certificate and a secure shopping certificate, which you can get from the place you want to advertise.
Business Banking
Once registered, a business can open a bank account. You will need to provide: passport, Alien Registration Card (ARC), office lease. Note that not all banks offer services in English. Halla Systems specialists speak Korean and assist clients in registering their business in Korea and opening a local bank account.