Company Formation in Korea
Company Formation in South Korea :
How to from a company in South Korea?
There are some simple and easy ways for foreigners to form a Company in South Korea. South Korea, strategically located between China and Japan. South Korea is an ideal international trading hub for investors to open their next business venture in Asia.
The Advantages of Incorporation
There are no restrictions in South Korea when it comes to foreign currency accounts or the repatriation of capital earnings, which may be good news for foreign investors. A limited liability company can be established and incorporated within one week as long as the requirement for a minimum of one shareholder and one director of any nationality is fulfilled.
South Korea’s Foreign Investment Promotion Act allows 99.8% of Korea’s industries to be opened for foreign investors and the significant amount of investment protected for the investors at the same time.
What you can expect when incorporating a Company in South Korea?
The following are regulations for investors should be aware of when doing business in South Korea:
- Taxes on corporate incomes are 10% for the first 200 million won.
- Incomes between US$180,000 and US$20m are taxed at 20%.
- Vat amounts to 10% on the sales and transfer of goods and services. Electronic invoicing for VAT is compulsory and quarterly VAT filings are compulsory.
- Non-resident companies are subject to withholding tax.
- Resident foreigners are tax based on their worldwide income after staying in South Korea for more than 5 years out of a 10-year period.
- There are no export duties imposed.
- Annual tax returns are required to be filed at the National Tax Service of South Korea.
Are you ready to get started incorporating your company in South Korea?
LegalGlobe is here ready to help you. We are professional with years of expertise and know-how will help ensure your company incorporation process goes smoothly. Please visit us or you make an appointment with any of our experts.