Korea Desk

The most common legal forms are the limited liability company (GmbH) and the stock corporation (AG). For market entry, the GmbH is usually recommended, as it is flexible, offers limited liability, and can be established relatively quickly with a minimum share capital of EUR 25,000. Alternatively, a branch office of the Korean parent company may be set up.

A legally valid business address (address for service) in Germany is required to establish a GmbH. Virtual offices or co-working spaces are permitted, provided they meet the legal requirements for service of process. A Korean address alone is not sufficient.

For executives and skilled professionals, the primary options are the ICT visa (Intra-Corporate Transfer) and the EU Blue Card. Secondments under service or work contracts are also possible. Requirements vary depending on the position, qualifications, and salary.

In Germany, the main taxes are corporate income tax (15 % plus solidarity surcharge), trade tax (depending on location, typically 14–17 %), and value-added tax (VAT) (19 % or 7 %). In addition, employers must withhold payroll tax for employees and comply with extensive reporting and documentation requirements.

Not necessarily. Foreign nationals can also serve as managing directors of a German GmbH. However, in practice, managing the business usually requires knowledge of the German language and a valid residence permit. A legally valid address (address for service) in Germany is always required.

A works council is the elected employee representative body. It can be established in companies with at least five permanent employees. It has extensive co-determination rights regarding dismissals, working hours, compensation, and other workplace matters – one of the distinctive features of German labor law.

Patents, trademarks, and designs should be registered in Germany or at the EU level at an early stage. For Europe-wide protection, EU trademarks or European patents are recommended. Contractual arrangements (e.g., NDAs, licensing agreements) are also essential.

Employers are required to provide statutory social security coverage and accident insurance (via the relevant trade association). In addition, business liability insurance, D&O insurance (for managing directors), and, where appropriate, cyber insurance are recommended.