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Local Compliance InformationVentures & Start-upsOthers | Company Type and Character under the Korean Commercial Code | ||||||
| TYPE | Public Limited Company (PLC) |
Limited Liability Company (LLC) |
Unlimited Partnership Company (UPC) |
Limited Partnership (LP) |
Limited Liability Company (LLP) | |
| Definition | . Shareholders have an only liability which have to contribute their share portion. | . Unitholders are liable within their investment amount. | . All of the unitholder are liable to creditors unlimitedly and in solidum. | . A Company has two type of unitholders 1) a general partner : liable to creditors unlimitedly and in solidum. 2) Limited liability partner : liable to creditors within their investment amount. | . Unitholders are liable within their investment amount. | |
| Capital Minimum member |
KRW 100 ~1 Bil. | KRW 100 ~1 Bil. | over KRW 100 | over KRW 100 | over KRW 100 | |
| . Director 1 . (Not hold stock) Auditor 1 |
.Rep. Director 1 . Director 1 인 |
. Rep. member 1 . Member 1 |
.Rep. member 1 General member 1 Limited Liability member 1 | . Rep. Director1 .Director 1 ( Business conducting ) | ||
| Structure | Company representative | Rep. Director | Rep. Director | General partner | General partner | Business Conducting Manager |
| Decision-making | Shareholder's meeting | Unitholder's Meeting | General partner | General partner | Business Conducting Manager | |
| Business-conducting | Board of Director | Unitholder's Meeting | General partner | General partner | Business Conducting Manager | |
| Audit Operation |
. Initial capital is less than 1 billion(No need auditor) | .Auditor(no compulsory) | . No need | .No Need Limited Liability Partner(Authority to oversee) |
. No Need | |
| Merits | . Freely transfer the share as an equity. | . No need to announce of the financial statement vs PLC (Balance Sheets, Business report, reserves and profits dividends etc.) | . Each partner conduct his own liability and represent the company. . Suitable to small group with reliable relationship. |
.General Partner conduct and represent company. .Regardless of each investment and shares, profits can distribute as per the agreed method. |
. Member can participate the company management directly. | |
| De-merits | . A lot of the interested parties and regulations( Shareholder's meeting, Public Notice, etc. ) '. Imposed both corporate tax for company and dividend income Tax for shareholders. |
. Can't convert into securities. | . Unlimited liability for legal and financial burden | . Can be highly possible to arise the dispute among the members. | . Can't convert into securities and the transfer of unit are stipulated on AOI. | |
| Cases in Korea | . Most of local company in Korea. | . Lot of FDI company in Korea (Google Korea, Apple Korea, LVMH, etc. ) | . Rather than capital combination, kind of the family & human-related company | .Among the families, for the purpose of property inheritance, adopted by law, accounting, medical service firm. | . Usually matched the youth venture start-up company. | |
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