A for-profit corporation branch (영리법인 지점) is a separate place of business established by a corporation to conduct operations in a different location. Except where a business-unit VAT special rule applies, each branch is registered separately for tax administration.
Corporate entity types of the head office
Branches in Korea may be established by any of the following domestic corporate forms (or by comparable foreign entities when registering a branch):
- 주식회사 (Chusik Hoesa, Stock Company) — Shareholders’ liability limited.
- 유한회사 (Yuhan Hoesa, Limited Company) — Members’ liability limited; more privately held.
- 유한책임회사 (Yuhan Chaekim Hoesa, Limited Liability Company) — Members’ liability limited; flexible governance.
- 합명회사 (Hapmyeong Hoesa, General Partnership) — Partners’ liability unlimited.
- 합자회사 (Hapja Hoesa, Limited Partnership) — Mix of unlimited (general) and limited partners.
Contracting note: A branch binds the head office. Confirm the branch registration and check the Corporate Registration Number (법인등록번호) to verify the entity type, registered representative(s), and any limitations on authority.
What for-profit corporation branch type can do
It conducts the company’s business locally within authority granted by the head office. Branches may enter into contracts, run operations, and issue tax invoices where registered to do so.
What to be aware of when contracting
- Confirm the branch registration and the scope of the branch’s delegated authority from the head office.
- Ensure that permits for regulated activities extend to the specific branch location.
- Clarify invoicing details (branch registration often appears on VAT invoices).
Licenses and permits
Where the branch undertakes regulated activities, relevant permits/notifications must be obtained for that site, not just at the head-office level.
Accounting and income-tax requirements
Corporate income tax is determined at the company level, but branches have separate VAT registration and compliance. The company maintains double-entry books, and external-audit requirements depend on the overall company size.