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Understand the Jurisdictions Setup Requirement Before Proceed Your South Korea Company Incorporation Services
South Korea, strategically located between China and Japan (which are two of the world’s biggest economies), is an ideal international trading hub for investors seeking for a good location to open their next business venture in Asia.
The Advantaged of South Korea Incorporation
Among some of the advantages that lie in store for the investor incorporating their company in South Korea include the following:
- There are no restrictions in South Korea when it comes to foreign currency accounts or the repatriation of capital earnings, which can be good news for investors.
- A limited liability company in South Korea can be established and incorporated within a week as long as the requirement for a minimum of one shareholder and one director of any nationality is fulfilled.
- South Korea is advanced technologically when it comes to its air, land and sea transport network, which allows businesses a quick delivery of good and raw materials within the country especially.
- South Korea’s Foreign Investment Promotion Act allows 99.8% of Korea’s industries to be opened to foreign investment and provide a significant amount of protection for the investors at the same time.
- Incheon International Airport is also a leading logistics and transportation hub in Northeast Asia.
What to Expect When Incorporating a Company in South Korea
The following are regulations that 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. 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.
South Korea Company Incorporation Services
Incorporating a company in South Korea can easily be done by enlisting the help of professional incorporation services agencies, Osung Accounting Corporation to assist with the following procedures but not limited to:
- Appoint the minimum number of shareholders required for the incorporation
- Make a company seal
- Register the company with Start-Biz
- Pay the required incorporation fees
In an attempt to attract foreign direct investment into South Korea, the government has provided tax incentives for small and medium-sized enterprises. As part of its plan to further develop the nation, South Korea will welcome tenders that will help develop its infrastructure system and attract more global investors.
Are you ready to get started incorporating your company in South Korea? 3E Accounting is here to help. Our team of seasoned professional with years of expertise and know-how will help ensure your company incorporation process goes smoothly so you can get your business up and running in to time. Contact Osung Accounting Corporation today to get your incorporation process started!