Essential Guide to LLC Directorship: Understanding the Legal Requirements
The establishment of a Limited Liability Company (LLC) in Korea involves a spectrum of considerations, chief among them being the selection of a director. As stipulated by Commercial Law Article 561, the appointment of a director is a prerequisite for an LLC, with specific requirements for both residents and non-residents.
For non-resident directors, the law imposes no restrictions, making it an open field for potential candidates. However, it's worth noting that North Korean passport holders are exempt from this provision.
Resident directors, on the other hand, must be visa holders with appropriate work permits. This could pose a challenge for E series visa holders who would require an additional work permit to qualify.
When compared to a C-Corporation (C-Corp), an LLC holds several advantages. For instance, there's no requirement for an auditor, nor is there a need to extend directorship every three years as is the case with C-Corps.
To successfully establish an LLC, you need to consider the following details:
1. Company name
2. Directors' names
3. Shareholders' names
4. Business address
5. Purpose of the business
6. Paid-in-capital
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**FAQs:**
1. **How many directors are required for an LLC?
One director is required for an LLC as per Commercial Law Article 561.
2. **Are there any restrictions on non-resident directors in an LLC?
There are no restrictions on non-resident directors except for North Korean passport holders.
3. **What are the requirements for resident directors in an LLC?
Resident directors must be visa holders with a valid work permit.
4. **Does an LLC require an auditor or directorship extension like a C-Corp?**
No, an LLC does not require an auditor or directorship extension every three years like a C-Corp.
5. **What details are needed to establish an LLC?**
To establish an LLC, you need the company name, directors' names, shareholders' names, business address, purpose of the business, and paid-in-capital.
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**Keywords:**
LLC, Directorship, Commercial Law, Non-Resident Director, Resident Director, C-Corp, Business Setup, Work Permit, Company Formation, Paid-In-Capital
