A for-profit corporation’s head office (영리법인 본점) is the principal place of business of a company. It can engage in any lawful business authorized by its articles and registrations, including manufacturing, distribution, technology services, and more.
Corporate entity types included (Korea)
The following Korean corporate forms fall under the “for-profit corporation” category for commercial and tax purposes:
- 주식회사 (Chusik Hoesa, Stock Company) — Shareholder liability is limited to capital contributions; directors/officers act for the company. Widely used across industries and for raising capital.
- 유한회사 (Yuhan Hoesa, Limited Company) — Members’ liability is limited; typically closely held with comparatively fewer disclosure/formality requirements than a stock company.
- 유한책임회사 (Yuhan Chaekim Hoesa, Limited Liability Company) — Members’ liability is limited with flexible internal governance (similar to an LLC). Often chosen for speed and contracting simplicity.
- 합명회사 (Hapmyeong Hoesa, General Partnership) — Partners have unlimited joint and several liability. Less common for external financing; verify partner authority carefully.
- 합자회사 (Hapja Hoesa, Limited Partnership) — At least one general partner (unlimited liability) and one or more limited partners. Confirm the general partner’s identity and authority when contracting.
Contracting note: Regardless of form, check the Corporate Registration Number (법인등록번호) for the entity type, registered representative(s), and any limitations on authority.
What for-profit corporation head office type can do
It enters into contracts, owns assets, employs staff, and may establish branches. It issues tax invoices for taxable supplies and is responsible for full corporate compliance across taxes, labor, and reporting.
What to be aware of when contracting
- Verify registry details (company name, registered address, representative director) and that the signatory has binding authority.
- Confirm VAT status and the ability to issue compliant tax invoices.
- For regulated industries (finance, healthcare, F&B, energy), ensure the company holds the requisite licenses covering the contemplated activity.
Licenses and permits
Licensing depends on the business line. Core examples include financial services licenses, medical or pharmaceutical approvals, food hygiene permits, and energy or industrial permits. The entity form does not itself confer sectoral permission.
Accounting and income-tax requirements
A domestic corporation maintains double-entry bookkeeping and prepares financial statements. It is subject to corporate income tax on taxable income and, if thresholds are met, statutory external audit under the Act on External Audit and its Enforcement Decree. VAT applies to taxable supplies.