Leverage Tax Benefits with Virtual Offices in Non-Capital Areas of Korea
*Photo; YongIn city(Goon-office) hall in 1950s
When exploring options for a virtual office in Korea, it's crucial to consider the tax advantages that different cities offer. The Korean government has designated various regions, such as Seoul, Seongnam, Incheon, and Suwon, as "Capital areas" and "Non-capital areas". These areas offer attractive tax incentives and support to small and medium-sized businesses. However, there can be tax-related challenges and potential discrimination for businesses in these regions.
For this reason, it could be more beneficial for your business to set up in a "Non-capital area" like Yongin.
JZ Campus in Yongin city offers specialized virtual office services to help you avoid such issues.
Establishing your business in Yongin or other non-capital regions can lead to significant savings on registration tax. The entity registration tax in "Capital areas" is three times as high as that in non-capital areas. Moreover, if your business address is located in a "Non-capital area" and falls under certain categories such as an "Online shopping mall", you could be exempt from paying corporate income tax for five years.
However, remember that incorporating a company in Korea comes with various legal procedures and requirements, irrespective of the chosen location. Therefore, it's always wise to consult with a professional or legal expert before making any final decisions.
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**1. What are the benefits of setting up a virtual office in Non-Capital areas of Korea?
Setting up a virtual office in Non-Capital areas like Yongin can offer significant tax benefits. Businesses can save on registration tax and may be exempt from corporate income tax for five years under certain conditions.
**2. Are there any drawbacks to setting up a business in Capital areas of Korea?
While Capital areas offer certain incentives, businesses may face tax-related challenges and potential discrimination.
**3. What services does JZ Campus offer?
JZ Campus offers specialized virtual office services in Yongin city, helping businesses leverage the tax benefits of setting up in Non-Capital areas. You can hire JZ for your virtual CFO so you guys can share his street smart shared services.
**4. What should I consider before incorporating a company in Korea?
Incorporating a company in Korea involves various legal procedures and requirements. It's advisable to consult with a professional or legal expert before making any decisions..