How to Establish a Liaison Office in Korea
1. When a Liaison Office Is Needed
A liaison office does not conduct profit-making business in Korea. Instead, it performs non-commercial functions such as market research and research and development.
Unlike a branch office, a liaison office does not need to undergo court registration. It receives an identification number equivalent to a business registration number from the competent tax office in Korea.
2. Establishment Procedure
Once you pay the legal service fee, we will guide you through the required documents. You will prepare some documents in your home country, while Hwaum Law Office prepares others.
When the documents arrive at Hwaum by airmail, the process proceeds as follows.
1) Notify a Designated Foreign Exchange Bank of the Establishment of the Foreign Company's Liaison Office in Korea
The establishment of a liaison office must be notified to a foreign exchange bank unless it involves a special sector requiring government approval, such as the financial industry.
Hwaum Law Office works with Woori Bank's Samsung-ro Branch to carry out tailored procedures promptly and accurately.
2) Register the Liaison Office with the Competent Tax Office
Because a liaison office does not operate for profit, it applies for an identification number rather than business registration.
In addition, there is generally no obligation to pay withholding tax if the foreign head office pays employees' salaries or if no employees work at the liaison office.
3. Timeline
The following timeline is stated on the existing page.
- D+0: Documents arrive in Korea
- D+3: Translation work
- D+3: Notify a bank of the liaison office's establishment
- D+5: Enter into an office lease
- D+7: Business registration with the tax office
- D+7: Completion
Service Fee
Liaison Office Establishment: US$1,800.00