South Korea has a straightforward process when it comes to importing goods into the country. The start of the process is the conclusion of a contract, and the culmination is the import payments. The import payments encompass a large number of activities, including the conclusion of import contracts, establishing import permission, clearance of customs regulations, and actual payment. There are other steps that are usually optional, on which the nature of the actual goods and the kind of transaction that was carried out has a direct consequence.

Imported goods must enter through one of the established channels: the ports of entry. The duties that are then calculated by the customs officials need to be disbursed, and the delivery is then carried out. There are occasions when the item that needs to be imported is deemed to be an import restricted item, at this time the import authorization is strictly required. As per the Mitt’s Export and Import Notice, the restricted item must have an import recommendation, which can be obtained from a competent authority or association. The organization must be in accordance with the regulations of import announcements and must conform to the special notice outlined by the Ministry of Trade and Industry. However, freely importable items do not need any recommendation.

An import license is mandatory in South Korea, and can be obtained from the Ministry of Trade and Industry. It is also possible to appoint the president of a foreign bank as a delegate, who can issue import licenses. This is applicable except in the case of counter-trade.

South Korean foreign trade is subject to a great deal of legislation. One of these is the External Trade Act, which specifies the procedure for the export and import of goods. There is also the Foreign Exchange Management Act which related to foreign exchange matters, including matters such as the settlement of export or import payments. And lastly there is the Customs act, which deals mainly with customs clearance, among other things.

As the eleventh biggest economy in the world South Korea offers numerous business opportunities. And this tip will cover various procedure and paperwork that is required to start a business in South Korea.

Checking out Trade Name

Any entrepreneur willing to start business in South Korea first has to take a trade name certificate. This certificate process only takes a day and availability can be checked with the Supreme Court website. There is absolutely no charge for checking the availability of the company name, only condition is that no other organization is running the same business in same city or South Korean term ‘Kun’.

Making the Seals

The next in line is getting the seals and other paperwork done for the company. In case of an entrepreneur they can use their personal seal. It is similar to sole proprietary firm in United Kingdom and United States.

Incorporation of the company

Next step in starting a business is to incorporate the company by registering it with the registrar of the company department. The notarization process often takes a day and company has to show the total capital more than 10 million Korean wan.

Next is Opening the Bank Account

The promoters starting a business in South Korea next need to open the bank account and deposit complete subscription amount in lieu of the share they are subscribing in the company.

Paying the Corporate Registration Tax

The corporate registration tax varies in different areas of South Korea. The basic components of corporate registration tax are – capital registration tax, education tax, railroad bond tax and registration tax of Supreme Court Stamp.

Registration with District Tax Office

To start the business operation an entrepreneur has to register their business with local tax office and get a commencement of business certificate. This process often takes 20 days and each business will be issued a tax identification number and VAT number.

Filing Public Health Insurance Program

Companies with more than one employee need to register themselves with National Insurance Program.

Finally the company has to submit the rules of employment to the office of Ministry of Labor in South Korea. This process only takes a day and company has to submit the proof of accident insurance in case they are hiring more than 10 employees.