Foreign companies seeking to test the Korean market can set up liaison offices for this purpose. Also known as a representative office, this is a non-corporate form suitable for specific activities with limited character only.
Below, our company formation officers in South Korea explain the procedure to create a liaison office and the activities it can engage into. You can rely on our experts no matter the type of entity you decide on.
The Korean representative office is a non-corporate form that is recognized by Company Law for certain activities. However, the law under which it falls is the Foreign Exchange Transaction Act. This is why its incorporation procedure must follow similar steps to those of registering a branch, for example. This means that:
These are the mandatory steps to complete in order to open a liaison office in Korea. However, additional requirements may apply such as registration for social security if the foreign business decides to hire employees. For this and for obtaining a tax code, you can rely on our accountants in Korea.
Just like when opening a company in Korea, the registration procedure of a liaison office relies on the submission of a set of documents from the parent company. These are:
It is useful to know that the parent company can dispatch an employee from its headquarters for whom a Korean residence permit and work visa can be obtained with the help of our lawyers.
When seeking to establish a long-term presence in South Korea, foreign businesses frequently start with representative offices. These business forms offer a platform for the foreign investor to carry out tasks such as, but not limited to:
Public relations activities are also permitted through this legal form. A representative office, however, is not allowed to engage in sales operations. This implies that it is unable to execute contracts, accept payment, or generate invoices and tax receipts.
Korean representative offices can also arrange business visits from corporate headquarters which makes the procedure for obtaining visitor visas much simpler.
One of the reasons foreign companies seek to test Korea’s business market is its rising economy. According to recent information, its economy is slowly but securely ascending, as the number of registered businesses is on the rise, and so are employment levels. Here are some highlights on these subjects:
If you want to open a liaison office in Korea and need assistance, please contact our local team!