Company Law of South Korea
1. Jusik Hoesa (Stock Company)
Jusik Hoesa is the only form of corporate entity that is allowed to publicly issue shares. The vast majority of corporations in Korea chose the Jusik Hoesa corporate form. It is also the most common corporate form that foreign companies chose for their subsidiaries.
2. Yuhan Hoesa (Limited Liability Company)
Yunhan Hoesa is a closely held company that is prohibited from having more than 50 shareholders. In recent years a few foreign companies have chosen the Yuhan Hoesa, however, most foreign companies are advised and will form a Jusik Haesa. A few companies, recently, have chosen this form because of possible U.S. tax benefits.
3. Hapja Hoesa (Limited Partnership)
In a Hapja Hoesa one or more partners may have unlimited liability and one or more partners may maintain limited liability. The entity, as all incorporated entities, is responsible for corporate taxes.
4. Hapmyeong Hoesa (Partnership)
In a Hapmyeong Hoesa two or more partners form the partnership. The partners must maintain unlimited liability. The entity, as all incorporated entities, is responsible for corporate taxes.
1. What is the legal system (civil law, common law or a mixture of both)?
Historically, the laws of South Korea were influenced by the European civil law system. US laws have influenced more recent legislation.
Registration formalities
The following activities, among others, must be completed to incorporate a joint stock company: * Draft the articles of incorporation (articles). * Subscription of shares by the promoter(s) and other subscriber(s). * Payment of subscription money. * Investigation by the directors and auditors into whether the incorporation has complied with applicable laws and the articles, and investigation by the appointed inspector or appraisers into whether any elements of abnormal incorporation, such as promoters' special benefits, contribution in kind and transferred property in advance, have been
Jusik Hoesa is the only form of corporate entity that is allowed to publicly issue shares. The vast majority of corporations in Korea chose the Jusik Hoesa corporate form. It is also the most common corporate form that foreign companies chose for their subsidiaries.
2. Yuhan Hoesa (Limited Liability Company)
Yunhan Hoesa is a closely held company that is prohibited from having more than 50 shareholders. In recent years a few foreign companies have chosen the Yuhan Hoesa, however, most foreign companies are advised and will form a Jusik Haesa. A few companies, recently, have chosen this form because of possible U.S. tax benefits.
3. Hapja Hoesa (Limited Partnership)
In a Hapja Hoesa one or more partners may have unlimited liability and one or more partners may maintain limited liability. The entity, as all incorporated entities, is responsible for corporate taxes.
4. Hapmyeong Hoesa (Partnership)
In a Hapmyeong Hoesa two or more partners form the partnership. The partners must maintain unlimited liability. The entity, as all incorporated entities, is responsible for corporate taxes.
1. What is the legal system (civil law, common law or a mixture of both)?
Historically, the laws of South Korea were influenced by the European civil law system. US laws have influenced more recent legislation.
Registration formalities
The following activities, among others, must be completed to incorporate a joint stock company: * Draft the articles of incorporation (articles). * Subscription of shares by the promoter(s) and other subscriber(s). * Payment of subscription money. * Investigation by the directors and auditors into whether the incorporation has complied with applicable laws and the articles, and investigation by the appointed inspector or appraisers into whether any elements of abnormal incorporation, such as promoters' special benefits, contribution in kind and transferred property in advance, have been