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Business Registration Certificate

lastmod 2025-09-14created 2025-01-2124 edits

About the business registration certificate.

Check the Statistics Korea Korean Standard Industrial Classification (KSIC), then convert it to the industry code posted on Hometax.

Excel file needed for the conversion: Industry_Code_-Standard_Industrial_Classification_Linkage_Table-_HomeTax.zip - Industry code - Standard Industrial Classification linkage table - posted on Hometax

You can get the tax reduction for SME startups (a must for anyone in an IT-related industry working on a computer!). The relevant industries are:

  • Computer programming
    • For program development and maintenance work under service contracts
    • System Integration (SI)
    • System Management (SM) - operation and maintenance
  • IT consulting (technical support)
  • Application software development and supply - this is for app developers on Kmong, Saramin Gig, etc.

Refer to the IT-related classification codes of the Statistics Korea Korean Standard Industrial Classification (KSIC). After visiting the Statistics Korea classification portal, go to the following menu: 

경제 분류 > 한국표준산업분류(KSIC) > (좌측 메뉴) 검색 > 분류내용보기(해설서)

When the new popup appears, open the J. Information and communication (58~63) item.

58. Publishing

  • 582. Software development and supply
    • 5821. Game software development and supply
      • 58211. Wired online game software development and supply
      • 58212. Mobile game software development and supply
      • 58219. Other game software development and supply
    • 5822. System and application software development and supply
      • 58221. System software development and supply
      • 58222. Application software development and supply

62. Computer programming, system integration and management

  • 620. Computer programming, system integration and management
    • 6201. Computer programming services
      • 62010. Computer programming services
    • 6202. Computer system integration consulting, construction and management
      • 62021. Computer system integration consulting and construction services
      • 62022. Computer facilities management
    • 6209. Other information technology and computer operation related services
      • 62090. Other information technology and computer operation related services

Advertising agencies

71310

Initial setup right after registering a Korean: 사업자등록증

  • Place of business (avoiding the overcrowded Seoul metropolitan area gives you reduction benefits)
  • For the National Pension, once you are enrolled as a regional subscriber, as soon as you register the business the National Pension Service sends you a letter. (Telling you to enroll in the National Pension since you registered a business..)
  • Choose the industry carefully. (You can add one later, but there is no reduction benefit. Better to register again as a new business.) 1
  • Tax reduction for SME startups (a must for anyone in an IT-related industry working on a computer!)
  • Register a business account and a business card
    • A bankbook with your trade name printed on it from the bank means nothing. (It has to be registered as a business account/card on the National Tax Service's Hometax.)
  • Receipts are mandatory
    • Get qualified evidence (receipts defined by tax law)
      • Tax invoice - for large amounts, just ask for a tax invoice.
      • Credit card receipt - just swipe the card. The simplest.
      • Cash receipt - after paying cash at places like small shops, enter the 10-digit business registration number, not your phone number.
    • Phone bills, rental fees, etc. - can be recognized as business expenses - the automatic payments must be set up on the business card.
  • Employee payroll reporting - must be reported right away.
    • Write an employment contract (fine of up to 5 million won)
    • Comply with the minimum hourly wage (9,620 won as of 2024, 2,010,580 won when converted to a monthly salary) - essential if you don't want to be reported to the Ministry of Employment and Labor.
    • When hiring part-timers for 15 hours or more a week, also consider the weekly holiday allowance (a labor matter)
    • Four major social insurances reporting (annual total remuneration report once a year, loss-of-coverage report on resignation, etc.)
    • Tax filing
  • If you work with family, payroll reporting is mandatory
  • Schedule for self-employed / sole proprietors
    • Once a month
      • Four major social insurances acquisition report
      • Payroll tax filing
    • Once every 6 months (January, July) - general taxpayers
      • VAT filing
    • Global income tax filing in May of the following year, all together (every May)
  • Be sure to check the records of lump sums spent on the initial business setup.
    • As long as there is a record of payment, all of it can be expensed.
    • Key money - usually expensive, so a contract is written, and it can be expensed with that.
    • Construction and facility investment costs
    • Fixtures and supplies investment costs
    • At the very least, a record of the transfer is enough. (Don't just hand over cash because the contractor asked for cash)
    • Cash is absolutely not allowed!!
  • Weddings, funerals - can be expensed as entertainment expenses (text message screenshot, wedding invitation)
  • Yellow Umbrella Mutual Aid (Noran Usan Gongje) - get one issued when opening a business account
  • Types of government-supported startup support packages
  • Getting an accredited certificate
    • You don't need to buy the bundled 110,000-won one.
    • Two 4,000-won business accredited certificates
      • 1 for electronic tax invoices
      • 1 for general use

Business start date

The day business activity actually begins (issuing tax invoices, transaction contracts, etc.) is considered the business start date.

Withdrawing a business closure

Go to the "VAT" division of the tax office. However, you must not get a "certificate of business closure" issued.

Sample

Sample PDF download:

Similar terms

In the United States, the concept corresponding to Korea's Korean: 사업자등록증 is generally expressed with the following terms:

Business License
The most commonly used; it means the legal permit to operate a business.
Certificate of Incorporation
A registration document issued by the state government when a corporation is formed.
EIN Confirmation Letter (Employer Identification Number)
A business identification number confirmation letter issued by the U.S. Internal Revenue Service (IRS).
DBA (Doing Business As) Certificate
A certificate required when a business uses a registered trade name.
Business Registration Certificate
Means a general registration certificate; the name may differ from state to state.

Which term to use depends on the business type (corporation, sole proprietor, LLC, etc.), so it is important to choose the term that fits the situation.

See also

Favorite site

References

  2. Application_for_Individual_Business_Registration_-_rodemtax.pdf ↩

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