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Case Study

Subject
Comparison between Branch and Liaison office of Foreign Entity(2)
Writer
Manager
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1315
Date
2014-04-29
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(1)   Setup of Liaison office

As the Liaison office operates only the preliminary and supportive activities for the business, it cannot be classified local company and therefore there are no responsibility of tax report both CIT and VAT. Office is merely received the Unique Number Card from National Tax Service and also have to file/return the withholding tax and the summary of VAT.

Office is no operating of business activities and can’t issue the Tax Invoice. If office want to do a business activity, office have to return the Unique Number Card and apply the Registration of Business Code again. 

 

<Reference 1>Procedure of Local Branch Office (file the registration to MOJ)

(1)   Registration of Local Business (Branch) Office

(2)   Local Business office Opening Notice to Korean Exchange Bank in Korea

(3)   Application of Registration of Business Code from National Tax Service

(4)   Opening Bank Account from Korean Exchange Bank

 

Required Documents by each step

 

(1)   Registration of branch office of local business

Document for proving HQ’s existence (HQ’s registration of Company)

-        Certificate from Home country’s government, registration of Company, Certificate of Business Code, etc.)

Document for proving the official representative in Korea (Notarization from foreign Embassy or Counselor)

-        One of the Appointment Letter, Minutes of Shareholder’s meeting and Minutes of BOD meeting

                Identified Documents which are included Company’s AOI or company type (Public Limited Company, Limited Liability Company, etc.).

-        It must be notarized by Home Country’s Government Authority or Home country’s Embassy in Korea.

                Minutes of Board of Director (Setup of Liaison office and appointment of representative) - Must be notarized by Home Country’s Government Authority or Home country’s Embassy in Korea however it’s duplicated No. however in addition, BOD have to resolve the setup of Branch office in Korea.

                  Copy of Authorized Permission or Certified Copy which is required in Home country for the setup of Branch office in Korea.

                 Signed Letter of Acceptance from Local Representative, Certificate of company seal, Certificate of Personal Registration.

                     In case of the foreign representative, Notice letter of company seal, Letter of acceptance (sign and notarize the signature in Home country’s lawyer or government authority), Certificate of resident registration in Home Country and passport copy.

(*) If the above documents are prepared by English or other Korean, it must be translated in Korean and attached the original foreign documents. 

 

(2)   Notice of Local Branch office setup as a foreign company

Notice Paper of Local Branch office setup

Certificate of Branch office registration

Certificate of official company seal

Appointment letter of local representative, Copy of ID Card or Passport

AOI of Parental company

 

(3)   Notice of Business Registration No.

Notice Paper of Business Registration No.

Certificate of Branch office registration

Certificate of company registration of parental company

Copy of office Rental agreement

Notice Paper of Local Branch office setup

Opening Balance sheet as of the date of setup

 

(4)   Bank account opening in Korean Foreign Exchange Bank

Copy of Representative’s ID Card or Passport

Certificate of Business Registration

Company Seal

Copy of Certificate of Branch office registration

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