Frequently Asked Questions

Establishment of an incorporated association is carried out in the following order: recruiting promoters → preparing articles of incorporation → holding an inaugural general meeting → applying for establishment permission from the competent government → registering the establishment. The competent authority varies depending on the business purpose, and a number of documents are required, including articles of incorporation, business plan, budget, and list of executives. Leaders, an administrative law firm, handles all stages of document preparation and consultation with the competent authorities, from the promoter stage to completion of registration.

An incorporated association is a non-profit corporation established centered on people (members), while a foundation is established centered on property. The operating method, decision-making structure, basic property requirements, and dissolution procedures are all different, so the appropriate form varies depending on the business purpose and size of property. Which is more advantageous varies from case to case, so prior review is essential before establishment, and Leaders will suggest the optimal corporate form through consultation.

Designation as a public interest corporation is made by the Minister of Strategy and Finance after recommendation from the competent authority, and the public interest of the business purpose, financial soundness, and operational transparency are comprehensively reviewed. When designated, tax deduction benefits can be provided to donors, which is a great help to fundraising activities. At the application stage, the preparation of precise documents such as articles of incorporation, business plan, and budget determines the acceptance rate.

For a non-profit corporation to become effective, the change must be registered after receiving permission (or report) for the change from the competent authority. Changes to the Articles of Incorporation and changes to officers must first be approved by the Board of Directors or the General Meeting, and the attached documents vary depending on the reason for the change. Schedule management is important as fines may be imposed if you miss the deadline, and Leaders handles everything from resolution to registration.

A civil law partnership is a contract-based organization formed by two or more people investing to run a common business. It has no legal personality and is operated according to contracts between members. It is widely used in joint ventures, joint investments, and project-type businesses, and recently, it is most often established in the form of a private investment association that invests in ventures and startups. Since the appropriate form varies depending on the business purpose, prior review is required before establishment.

In accordance with the Foreign Investment Promotion Act, foreign-invested companies are recognized only when foreigners invest more than 100 million won and own more than 10% of voting stocks. The procedure proceeds in the following order: foreign investment report (KOTRA or foreign exchange bank) → remittance of investment funds → registration of corporation establishment → registration of foreign investment company. Upon registration, various benefits are granted, such as tax reduction, cash support, location support, and preferential visa treatment for foreign executives and employees. Advance review is essential as restrictions and reporting requirements vary by industry. Leaders handles the entire process from the reporting stage to the issuance of registration certificates.

Small and medium-sized businesses that meet the requirements among the following types of research and development, innovation growth type, and venture investment attraction type can apply for venture business confirmation. It is evaluated by a venture business verification agency, and upon confirmation, various benefits are granted, such as a 50% reduction in corporate and income taxes, additional points for government R&D projects, preferential screening for KOSDAQ listing, and preferential qualifications for government-supported projects.

The E-6 visa is a status of residence issued to foreigners who wish to engage in artistic and entertainment activities such as music, art, literature, entertainment, and sports for the purpose of profit. It is divided into three types: E-6-1 (arts and entertainment), E-6-2 (hotels and entertainment establishments, etc.), and E-6-3 (sports). For issuance, an employment contract, performance recommendation letter (Korean Media Rating Board or Ministry of Culture, Sports and Tourism), business registration certificate of the inviting company, and documents proving financial ability are required. Depending on the type, degree/experience requirements or transmitting agency requirements are added. Because screening standards are strict and requests for document supplementation are frequent, prior consulting and accurate document preparation determine the success rate of issuance. Leaders provides comprehensive support from the invitation stage to visa issuance and change of residence status.

Lifelong education facilities are reported to the competent city/provincial office of education in accordance with the Lifelong Education Act. Facility standards and operational manpower requirements vary depending on the type of facility (affiliated with schools, attached to workplaces, attached to civil society organizations, attached to academies, etc.), and follow-up management obligations such as placement of lifelong educators and registration of training courses are required after reporting. Prior consultation is recommended, from facility type to operation plan.

Private qualifications are registered in the private qualification information service of the Korea Research Institute for Vocational Education and Training in accordance with the Framework Act on Qualifications. A certificate of registration is issued after submitting the qualification name, examination criteria, examination subject, and qualification issuing organization information, etc. and reviewing the reasons for disqualification. Since there is an obligation to report operational status every year after registration, it is advantageous for stable operation to design an operation plan together from the registration stage.

Copyright automatically arises upon creation, but registration with the Korea Copyright Commission grants legal presumption of the creator and date of creation, greatly reducing the burden of proof in the event of a dispute. Targets for registration include works of language, music, art, video, and computer programs. In addition to copyright registration, transfer of copyright property rights and establishment of exclusive publication rights can also be registered. Applications can be made online (copyright registration system) or in person, and the key is to prepare attached documents such as work specifications and reproductions. Registration ensures eligibility for legal damages and is very advantageous in responding to infringements, so registration from the early stages of business is recommended.

Licensing, registration, and corporate establishment are often rejected or requests for supplementation are repeated due to a single document difference, and the practical practices of each competent authority are different, so if you proceed on your own, the time and cost may increase significantly more than expected. Leaders, an administrative law firm, creates documents that are passed in one go based on many years of practical experience and know-how in negotiating with the competent authorities, allowing clients to focus on their main business. As requirements, documents, and schedules vary depending on the case, whether progress can be made and the expected schedule will be determined through consultation.