Setup

Establishment of a liaison office

Author
admin
Date
2014-03-31 09:35
Views
1606
There are three types of entity available to foreigner's investment into Korea.
That is 1) liaison office 2) branch office and 3) subsidiary.

Liaison office is the simplest type of investment into Korea.
It is not considered as a profit-earning entity in Korea, so there is no income tax payable.

Next step is a branch office which can engage in simple type of business in Korea, such as earning a commission.
Full-fledged business entity in Korea is to setup a subsidiary in Korea, which is a stock company.

Unlike a branch office, liaison office is not obliged to register with the court, so it is company choice. However, it is more convenient for a liaison office to register with the court to do business in Korea. If registered with the court, it is possible to purchase a property like office car under the title of liaison office. Also it can enter into a lease agreement with the landlord under the title of it. So we recommend a liaison office to be registered with the court.