What is a Branch Office?
A branch office is an extension of the foreign parent company that can conduct business activities in Korea without being an independent legal entity. Unlike a liaison office, it can sign contracts and engage in commercial activities.
Establishment Process
Branch offices must be registered with a foreign exchange bank under the Foreign Exchange Transactions Act. No Ministry of Justice approval is required. After registration, a business registration certificate must be obtained before starting operations. Processing time varies by the competent authority and your case; please confirm individually.
Tax Obligations
Branch offices are subject to corporate tax on income generated in Korea. Payments to the parent company must comply with transfer pricing regulations, and VAT obligations also apply.