
Hello from Samdo Accounting Firm’s Foreign Corporate Division!
Closing a foreign corporation’s branch in Korea involves several steps. Below is a general outline of the process for closing a foreign corporation’s branch in Korea.
1. Submission of Branch Closure Notification
Submit the Branch Closure Notification Form for Foreign Companies to the designated foreign exchange bank. You will need the following documents:
Branch Closure Notification Form
Proof of Closure from Headquarters
Original Branch Registration Form
2. Filing of Business Closure Notification
File a Business Closure Notification with the relevant tax office, returning the previously issued business registration certificate. Ensure that all necessary tax filings and payments are completed before submitting the closure notification.
3. Repatriation of Liquidation Proceeds
Complete the branch’s dissolution and liquidation registration. The dissolution and liquidation registration legally finalize the branch closure and address all outstanding liabilities. To repatriate funds from the sale of domestic assets to the home country, notify the designated foreign exchange bank. Required documents include:
Copy of the Branch Closure Notification Form
Documentation verifying the sale of domestic assets (e.g., contracts)
Tax Clearance Certificate
Statement of Business Capital, Retained Earnings, and Reserves
Balance Certificate (must match the amount in the liquidation report)
Copy of the Final Liquidation Registry Certificate
If unable to provide the Final Liquidation Registry Certificate, submit alternate documents, such as the Business Closure Fact Confirmation Certificate, Appointment of Liquidator, Creditor Notification Proof (2-month newspaper announcements), and Confirmation of Wage Arrears for Korean Employees.
The repatriation of proceeds is permitted within the remaining assets, and you’ll need to prepare a remittance application, withdrawal account passbook, and passbook seal for the transfer.
For tax filings, court registrations, and other formal procedures, it is advisable to schedule the process with legal professionals such as judicial scriveners. Their expertise can help prevent complications and ensure that all steps are smoothly managed.
This concludes our brief guide to closing a foreign corporation’s branch in Korea. Please feel free to contact us for further assistance or with any questions.
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