Q:
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How many types of branch are available for foreign companies (“headquarter”) registering an office in Korea?
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A:
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In general, there are two types of domestic branches in Korea, namely “Branch” and “Liaison Office”. Although both are categorized as domestic branches, their functions are totally different.
A branch can have sales and business activities in Korea to generate profits while a liaison office can only carry out non-sales function, such as quality control, advertisement, market survey, etc.
Branch Office in Korea is considered as a non-resident entity. That said, some local tax benefits are not applicable.
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Q:
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What is minimum requirement for setting up a branch in Korea?
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A:
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To set up a branch office, the company must have a physical office address in Korea and must appoint a branch representative, also known as branch manager. Relevant proofs are required to submit during the registration. For details, please refer to below Q&A of a general checklist.
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Q:
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Is it necessary to have a Korea Resident for the Branch?
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A:
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Even though there is no restriction on the nationality of the branch representatives set out by the Regulations, it is recommended to have at least one Korean resident representative to manage the branch for day-to-day business.
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Q:
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Is there any special requirement for the ownership, name and business nature of a branch in general?
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A:
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A branch must be fully owned by the headquarter. Its name must be identical with the headquarter with adding a word “Branch”. Unlike subsidiaries, the business nature of a Korea branch must be the same as the headquarter.
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Q:
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Is the branch considered as a separate legal entity?
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A:
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No, it is not a separated legal entity but treated as extension of the headquarter that is legally inseparable.
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Q:
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What is the minimum capital for set up a branch office?
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A:
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Different from a subsidiary, a branch is inseparable with its headquarter. That said, there is no capital for the branch. Minimum capital is not applicable for a Korea Branch.
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Q:
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What do I need to provide to set up a Korea Branch?
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A:
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Several documents should be prepared and presented to the related Authorities to set up a branch in Korea. Below is the general checklist for your reference:
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1.
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Legalized Identity documents, including passport and address proof for each branch representative;
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2.
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Legalized documents from head quarter, including:
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(1).
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Certificate of company registration issued by government;
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(2)
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Articles of association;
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(3).
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Copy of passport, ID Card and address proof of head office’s CEO, directors and shareholders;
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(4).
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Shareholder list which can show the ultimate beneficial owner;
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(5).
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Document attesting the appointment of Korea branch representative;
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(6).
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Minute of board of directors meeting;
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(7).
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Written resolution regarding the establishment of branch office in Korea such as location and date of the branch establishment;
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(8).
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Written Acceptance of Appointment from branch representative; and
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(9).
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Report of Branch representative’s Seal Impression.
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3.
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One set of original Tenancy Agreement in relation to the office space to be used by the Korea branch office for a term of not less than 12 months. It has to be "Local rent contract” written in Korean under local rent contract template; and
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4.
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Statement of Head Quarter Corporate objectives in point form.
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The above list is for reference only. Extra documents may be required subject to the case. We are glad to inform you that we could help arranging the Legalization as per required by the Authorities.
If necessary, we could also refer our partners to you for searching a suitable place in Korea for renting. Kindly contact with our professionals for further details about the service.
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Q:
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How long does it take to set up a branch?
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A:
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After receiving payment and all the required document, it shall take around 5 to 6 working weeks to complete the whole registration progress. Yet, the actual time may vary subject to the situation.
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Q:
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What is the obligation of a Branch?
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A:
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A branch has the obligation to comply with the compliance requirement set out by the Rules and Regulation of the Authorities. For example, if there are changes, the company has the obligation to inform the Authorities though its administrator.
It should also renew and prepare financial report and audit from time to time.
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Q:
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Is traveling to Korea required to set up a branch?
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A:
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There is no need to visit Korea directly to set up a branch. After providing all the necessary materials, we will proceed the registration. Physical visit is also not required for opening a bank account.
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FAQ
