An individual who intends to obtain approval from the local authorities to set up a holding company in Korea or to change an existing legal entity into a holding company has to submit to the Fair Trade Commission an application which contains certain information. In this article, our company formation advisors in Korea explain different aspects related to setting up holding companies in this country.
Table of Contents
Information needed to apply for a holding company in Korea
The data required for applying to set up a holding company in Korea are:
• The nature of the foreign legal entity which will be set up;
• The name of the individual who intends to subscribe for the shares (in case of the changing into a holding company – the name of the legal entity and its shareholders);
• The amounts of the subscription and the subscription ratio (in case of the changing into a holding company – the shareholding ratio, the shareholding ratios of the shareholders of the legal entity);
• The nature of the activities in which the subscribers of the shares are involved in (in case of the changing into a holding company – the nature of the activities the legal entity is changed into);
• Other information: our Korea company formation agents can provide more details on what this other information consists of.
A holding company in Korea is a legal entity which owns shares in other companies in order to control the activities of these companies, the total book value of which on the balance sheet has to account for at least 50% of the total assets of the legal entity.
Employment is one of the most complex aspects of running a business. But did you know that not only payroll, but also HR can be handled by an accounting firm? Our South Korean accountants can help you with most of the labor regulations that imply registering employment contracts and calculating wages in accordance with the law.
General holding companies and financial holding companies in Korea
With regards to the regulations which they have to obey, general holding companies in Korea and financial holding companies in this country do have certain common characteristics.
Firstly, they are not allowed to simultaneously own financial and non-financial subsidiaries (general holding companies cannot control financial companies and subsidiaries, while the financial holding ones cannot own non-financial entities and subsidiaries). Our Korea company registration consultants can offer more information on this matter.
If you need to know more about Korea holding companies, or for assistance in starting a business in Korea, we kindly invite you to contact our friendly staff. We can also help you if you need to open a company in other countries, such as Seychelles, through our local partners.