4th July 2014
MGI Asia’s Hanmi Accounting Corporation has published an expert guide on how to set up and run a business in South Korea. It covers a wide range of areas, including foreign direct investment incentives, tax and business expenses.
Giving firms the lowdown on how to invest in Korea, the pitfalls and advantages of running a business and a breakdown of the pros and cons of establishing a branch versus a subsidiary, the booklet is a comprehensive outline of the key steps for companies looking for opportunities in the country.
It is the second in a series from MGI Asia, promoting thought leadership and technical ability. The next contribution in the series will be produced by MGI Menon & Associates from Singapore.
The latest guide, Setting up and Running a Company in Korea, is available in a flip-book PDF and outlines the three main business entities that foreign firms moving into Korea can use: liaison office, branch and subsidiary. It also details the pluses and minuses of setting up as a sole proprietor or as a regular corporation. The document goes on to cover registration with the Korean tax authorities for the different entities.
FDI incentives are an important focus, with an emphasis put on the different types available and where they can be applied, such as the country’s Free Economic Zones (FEZs), Foreign Investment Zones (FIZs) and Free Trade Zones (FTZs).
The third section covers the basic tax regime in Korea, from income tax to corporate tax, residence tax to value added tax. Section four deals with business expenses and how to reclaim these against tax.
To get in touch with Hanmi Accounting Corporation, visit the company website, or the firm’s MGI member profile page.