A non-profit corporation (비영리법인) pursues public or charitable objectives (education, culture, research, social welfare, professional associations). It may operate paid programs or facilities, but tax treatment depends on whether an activity qualifies as profit-making business.
Corporate status & registry
In most cases, a non-profit corporation (법인) has a Corporate Registration Number (법인등록번호) issued by the court registry. Accordingly, you can obtain its Corporate Registry Certificate(s) (법인등기사항전부증명서) for the head office and, if applicable, any registered branch/office. If the entity is an unincorporated group (비법인 단체), it will not have a 법인등록번호 or corporate registry file and typically uses a unique identification number (고유번호) for tax administration. As a practical indicator, a Business Registration Number with middle code “82” often denotes a non-profit corporation, but you should still confirm via the corporate registry.
What non-profit corporation type can do
It can run mission-aligned programs, hold events, manage facilities, and engage vendors. When charging fees or selling goods, it should determine whether those activities are purpose-related or taxable profit-making operations.
What to be aware of when contracting
- Confirm representative authority and any restrictions from charters or public-funding rules.
- Check the Corporate Registration Number (법인등록번호) and obtain the latest Corporate Registry Certificate to verify entity name, registered representative(s), and any limitations on authority (e.g., joint signatures).
- Clarify whether the transaction is part of a profit-making business (affects VAT and corporate tax).
Licenses and permits
Licensing follows the activity, not the entity form. Running schools, clinics, or welfare facilities requires approvals from the competent authorities. For regulated lines, ensure the relevant license/registration explicitly covers the service, location, and period.
Accounting and income-tax requirements
Non-profits generally pay corporate income tax only on income from enumerated profit-making activities. They should maintain separate accounting between purpose business and profit-making operations. VAT applies on taxable supplies; purpose-related, non-taxable activities are tracked separately.