Our website uses  cookies for statistical purposes.

Our Articles

Open a Subsidiary in Korea

Open a Subsidiary in Korea

Set up as a local business, a subsidiary in Korea maintains closer relationships with the local business community and is able to offer the local company the chance to take advantage of the incentives put in place by the local government, mainly the tax incentives, if certain criteria are met. 

As follows, our company formation advisors in Korea explain how to set up a subsidiary in this country and various matters related to this subject.

How to open a subsidiary in Korea

To open a subsidiary in Korea in 2023, the following procedure is necessary:

• After the authorization to proceed with an investment has been obtained from the Korea Trade-Investment Promotion Agency (KOTRA), the company has to notify the local Ministry of Trade, Industry and Energy (MOTIE), a delegated official agency or Invest Korea, a non-profit organization of KOTRA;

• Choose and establish an office in the country;

• Register with the Tax Office: investors have to register their office or investment with the domestic tax office. Because of the language barriers, the Korean legislation complexity and the possibility of having many misunderstandings, it is advisable to seek the service of a reputed company registration firm in Korea to help you with this;

• Search for qualified workforce: locals are attracted by foreign companies because of the wages, work conditions, reputation, traveling opportunities, the chance to practice or learn English and the ability to transfer to the parent office or into another foreign subsidiary.

You can also trust our lawyers if you are interested in Korean immigration. We can advise on how to apply for a wide range of visas, including long-term resident permits. The last category has the benefit of enabling permanent residency in South Korea after living here for a certain period of time.

Other requirements for subsidiaries in Korea in 2023

A subsidiary company in Korea is required to organize a yearly meeting of the directors to approve the financial statements. It also has to hold a general meeting of shareholders each year.

Such a company in this country usually must lodge externally audited financial statements and the statutory accounts have to be reported to the local tax authorities yearly, together with the corporate income tax returns. 

Our Korea company formation agents can provide further details on the other requirements imposed for subsidiaries in this country.

In case you would like to know more about subsidiaries in Korea in 2023, or for help in setting up such a business here, please speak to our company formation representatives in Korea.

Payroll services and HR services are also available with our South Korean accountants. You can count on our assistance in creating the required documentation for employment, salary payments, and other connected matters. Do not hesitate to contact us for information on any of our options, including guidance on how to reduce taxes.

The economy of South Korea is expanding. With a population of more than 51 million, South Korea is one of the economies in the world that is expanding the fastest. It ranks top 10 globally in terms of nominal gross domestic product (GDP) and top 30 globally in terms of purchasing power parity (PPP).

The South Korean economy offers a unique blend of stability and strong growth rates that is very alluring to foreign investors. Also, there is a highly qualified workforce, strong R&D capabilities, and a dominant position in high-end electronics thanks to an effective educational system.

Once you come into the country, you must register with the local authorities. You also need the proper visa in order to live here. There are severe regulations for Korean residency depending on the type of visa you have gained to move here. If you are a new comer to this country, contact our lawyers who can help you.