Incorporation service
We are specialized in setting up subsidiary/branch/liaison office for foreign investors. Procedure details and templates required for the business establishment will be provided upon engagement.
What We Do
Deciding on which type of organizational structure a new company will setup is of key importance. This will determine certain legal, tax, and accounting issues the company will encounter in their business in Korea. Our business consultants can aid you by first listening to your needs; proceeding to explain the pros and cons of the different company forms; and then advising which corporate entity will best accomplish your goals.
· Chushik Haesa (CH: Joint Stock Company)
A joint stock company, or Chushik Hoesa, is the only corporate entity that is allowed to publicly issue shares. This is the most common corporate form for foreign companies intending to establish subsidiaries in Korea. Shareholders’ liability is limited to their capital investment injected to the company.
· Yuhan Hoesa (YH: Private Company)
Yunhan Hoesa, is a closely held with fewer shareholders and not allowed to be listed in stock market. Recently, growing number of foreign investors opt to this company format with the merit of lesser restrictions in directors, publication of financial statements, among others.
· Yuhan Chaekim Hoesa (YCH: Limited Liability Company)
YCH is intended to enjoy merits of CH and YH (similar to a LLC company in the US.). Only few however choose this form because of tax treatment.
A branch office is considered as the same legal entity of overseas head office. Tax incentive is limited, and legal impact can be imputed to foreign head office.
A liaison office is not allowed to perform any revenue generating activities. Mostly intended to be engaged in market research, R&D, advertisement, etc. for its foreign head office.