What is business registration?

• If you are earning income on POSTYPE on a continuous basis, please register as a business entity 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 as a business if they have the consent of a legal guardian (parent).
• Once you register as a business, both your income and sales are reported to the National Tax Service, so you can manage your income and taxes transparently.
• Whether you should register as a business depends on each creator’s individual situation, so we are unable to give a definitive answer. For detailed guidance, please contact the National Tax Service Hometax or the National Tax Service Call Center (dial 126 without an area code).

How to register as a business

• If you have a public certificate, you can apply for business registration and submit the required documents electronically via Hometax > [Certificates · Registration · Application] > [Business registration application · amendment · closure/suspension]. You can also apply at the tax office with jurisdiction over your place of business or at the civil service desk of a nearby tax office.
• Business creators on POSTYPE choose from a variety of business forms, tax types, and business categories.
• For more details, please refer to the National Tax Service guide on Business registration application.

Business form

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

Tax type

Individual businesses can choose between simplified taxation and general taxation. Corporations that are taxable businesses are classified as general taxpayers.

Simplified taxpayer

• Individual businesses with annual sales under 10,400,000 KRW 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 4,800,000 KRW, they are exempt from the obligation to pay value-added tax on their income.
• They file VAT returns once a year.
• Unlike general taxpayers, their tax amount is calculated by multiplying income by an industry-specific value-added rate.

General taxpayer

• Individual businesses with annual sales of 10,400,000 KRW or more, and corporate businesses, are classified as general taxpayers.
• Individual businesses file VAT returns twice a year, and corporate businesses file four times a year.
• Unlike simplified taxpayers, if a refund arises from their VAT filing, they can receive a refund of the value-added tax on fees.

Business category

• Please select the appropriate industry code at your discretion.
• However, if you wish to register your business category as publishing or electronic publishing, you must first register as a publisher at the civil affairs/passport department of the district office with jurisdiction before applying for business registration. If you are an individual, please bring your ID and your business premises lease agreement or a certified copy of the real estate register to file your publisher registration.