Establishment ofa branch office or liaison office in Korea

1) Establishment of a branch office

The process of establishment of a branch officeof in Korea is the same with that of a domestic branch of a domesticcorporation. The difference is that they should make a notification about theirestablishment to a foreign exchange bank. Establishing a branch office does notrequire to have capital.

★The process is as it follows;

√ Make a notification to a foreignexchange bank about establishment of a branch office

√ Registration of a branch office

√ Get issued a business licensefrom a tax office having jurisdiction over the branch office

√ open a bank account with thebusiness license

2) Establishment of a liaison office

A liaison office does not carry out businessesthat generate profit in Korea, but instead undertakes non-sales functions suchas research and R&D. Unlike a branch, a liaison office does not need toundergo registration, and is issued in identification number equivalent to thebusiness registration number at a jurisdictional tax office in Korea.

★Theprocess is as it follows;

√ Make a notification to a foreign exchange bank about theestablishment of a liaison office.

√ Get issued an identification number from a jurisdictional tax officein Korea which means that it does not allowed to carry out businesses thatgenerate profit in Korea and issue an invoice.

√ With the identification number, open a bank account

When aliaison office intends to carry out businesses that generate profit shouldchange itself into a branch office, cancelling its identification number andapplying for business license.