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Business Establishment & Liquidation

Business Establishment

For foreign or foreign-invested companies intending to establish a business entity in South Korea, we provide regulatory compliance services for incorporation in line with laws and regulations of Korea.

■ Advice on the appropriate type of an entity to be established in South Korea

■ Report and registration with government authorities

FX bank : file a foreign investment report with a designated foreign exchange bank
District Court : Register the incorporation of the company with the District Court
Tax office : file a report on the establishment of the company with an appropriate tax office and obtain a business entity registration code for tax purpose
FX bank : register the company with the FX bank as a foreign-invested company

■ Registration of licenses and permits with various government departments

Liquidation

We provide regulatory compliance services to effectively liquidate and dissolve a foreign or foreign-invested company.

■ Termination of employees : a proper report should be filed with the labor authorities

■ Report and registration with government authorities

FX bank : file a notice for the cancellation of the registration as a foreign-invested company
District Court : the dissolution and the completion of the liquidation must be registered with the District Court
Tax office : report the closure of the business;
file a VAT return for the last period ending on the Dissolution Date;
file an annual corporate tax return for the last fiscal period ending on the Dissolution Date;
file a liquidation income tax return after the completion of liquidation; and
obtain a tax clearance certificate
Others : return various business licenses and permits of the company to the relevant governmental authorities

■ Repatriation of residual capital/cash to overseas shareholders or head offices

Bookkeeping & Financial Reporting

Prepare vouchers for cash receipts and disbursement transactions
Prepare and maintain accounting records including journal entries, general and sub-ledgers etc.
Prepare various financial reports such as AR & AP aging report, inventory report etc.
Perform monthly closing of general ledger and prepare monthly financial statements in compliance with the Korean GAAP
Report financial package to the head office or parent company

Payroll & Statutory Social Insurance Administration

Maintain payroll records for all concerned employees
Prepare monthly payroll report
Prepare monthly pay slip and distribute to each employee
Arrange for the deposit of net monthly salaries to each employee’s bank account
File monthly payroll withholding tax return with the tax office together with the tax payment
Perform year-end settlement of exact payroll withholding taxes
Compute severance payments and income tax thereon for terminated/resigning local employees
Statutory Korean social security schemes related assistance

Tax Filing & Consultation Services

■ Tax filing service

Prepare and file the quarterly VAT Return with the tax office
Prepare and file the Corporate Income Tax Return with the tax office
Prepare and file the Individual Income Tax Return with the tax office
Prepare and file the Withholding Tax Return on interest, dividend, royalty and other income
Prepare and file the amended tax return and claim for rectification
Review of the issues with regard to tax exemption and tax credit/deductions

■ Consultation services on various taxation matters

Provide taxation strategies regarding the establishment/liquidation of a corporation, restructuring of a corporation, share transfer etc.
Provide advices on the international taxation pertaining to
– Permanent establishments
– Tax treaty and avoidance of double taxation
– Transfer Pricing (TP) taxation
– Thin capitalization taxation
– Tax haven issues

■ Tax audit support and other services

Legal advice and support on tax audits
Support for filing of tax appeals with competent tax authorities
Perform preliminary tax reviews for potential tax risk identification and in preparation for a future tax audit
Obtain tax rulings from the tax authorities for settling disputes
Represent the company with the Office of National Tax Service and District Tax Office regarding all tax related matters

Corporate Secretarial & Management

■ Annual Corporate Secretarial Service

Prepare minutes of annual general meeting of shareholders/members
Custody and maintenance of corporate legal documents and materials

■ Modification of registered items with relevant governmental authorities as follows:

Name of the company
Address of principal office
Representative director / Director / Auditor
Capital injection or reduction

■ Management

Document storage
Opening bank account
Reporting intercompany loan to the relevant authorities

Other Services

■ Cash management & Payment Administration

Manage the Client’s bank account and arrange disbursements including payment of salaries, payment to vendors, settlement of petty cash replenishment vouchers etc.
Obtain bank statements and perform bank reconciliation
Prepare and submit regular/non-regular cash balance report and fund request to the head office
Keep bank related documents in line with the internal control system

■ Issuance of Electronic Sales VAT invoice

Support issuance of electronic sales invoices which should be issued to the other transaction party when a registered taxpayer supplies goods or services

■ Others

Visa application service for the expats and his/her dependents
Financial audit support (external regulatory and internal)
Change of a legal entity type
Assist in preparation and submission of various special documents and reports to the tax office and other relevant authorities
Other ad-hoc services as per the clients’ request