What is business registration?

• If you are continuously earning income on POSTYPE, please make sure to register your business in accordance with Value-Added Tax Act Article 8 and Income Tax Act Article 168 to avoid any disadvantages.
• The business registration process is simple and easy, and there is no separate fee. Minors can also register a business with the consent of their legal guardian (parent).
• Once you register a business, both your income and sales are reported to the National Tax Service, allowing you to manage your earnings and taxes transparently.
• The need for business registration can vary depending on each creator’s situation, so we are unable to give a definite answer. For detailed guidance, please contact the National Tax Service Hometax website or the National Tax Consultation Center (dial 126 without an area code).

How to register a business

• If you have a digital certificate, you can apply for business registration and submit the required documents electronically via Hometax > [증명・등록・신청] > [사업자등록 신청・정정・휴폐업]. You can also apply at the civil service desk of the tax office that has jurisdiction over your place of business or any nearby tax office.
• Business creators on POSTYPE select from a variety of business types, tax categories, and business classifications.
• For more details, please refer to the National Tax Service guide on Business Registration Application.

Business type

• Sole proprietorship: Select this if the business is operated by an individual.
• Corporation: Select this if the business entity is a corporation established with capital contributions from shareholders.

Tax category

Individual businesses can choose to be either simplified taxpayers or general taxpayers. Corporations that conduct taxable business are classified as general taxpayers.

Simplified taxpayer

• Individual businesses with annual sales under 10,400만 원 can choose to be simplified taxpayers.
• Compared to general taxpayers, they bear less value-added tax on their income, and if annual sales are under 4,800만 원, the obligation to pay value-added tax on their income is exempt.
• They file VAT returns once a year.
• Unlike general taxpayers, they calculate the tax amount by multiplying by an industry-specific value-added rate.

General taxpayer

• Individual businesses with annual sales of 10,400만 원 or more, or corporations, are classified as general taxpayers.
• Individual businesses file VAT returns twice a year, and corporations file four times a year.
• Unlike simplified taxpayers, if a refund arises as a result of the VAT return, they can receive a refund of the value-added tax paid on fees.

Business classification (industry)

• Please choose the most appropriate industry code at your discretion.
• However, if you want to register your business under publishing or electronic publishing, you must first complete a publishing business registration with the civil service and passport division of your local district office before applying for business registration. If you are an individual, please bring your ID card and either your business lease agreement or a certified copy of the real estate register when filing your publishing business notification.