What is business registration?

• If you are earning income continuously on POSTYPE, please complete business registration 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 straightforward, and there is no separate fee. Minors can also register a business with the consent of their legal guardian (parent).
• Once you register as a business, all your income and sales must be reported to the National Tax Service, allowing you to manage your earnings and taxes transparently.
• Business registration may differ depending on each creator’s specific situation, so we are unable to give a definitive answer. For detailed guidance, please contact the National Tax Service Hometax or the National Tax Consultation Center (dial 126 without an area code).

How to register a business

• If you have a public certification (digital certificate), you can apply for business registration and submit the required documents electronically through Hometax > [Certificates/Registration/Application] > [Business Registration Application/Amendment/Closure]. You can also apply at the civil service desk of the tax office that has jurisdiction over your business location or at any 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

Sole proprietors can choose between simplified taxation and general taxation. Corporations engaged in taxable business are classified as general taxpayers.

Simplified taxpayer

• Sole proprietors with annual revenue under 10,400,000 KRW can choose to be classified as simplified taxpayers.
• Compared to general taxpayers, they bear less value added tax on their income, and if annual revenue is under 4,800,000 KRW, the obligation to pay value added tax on 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

• Sole proprietors with annual revenue of 10,400,000 KRW or more, and corporations, are classified as general taxpayers.
• Sole proprietors file VAT returns twice a year, and corporations file four times a year.
• If a refund arises from the VAT return, unlike simplified taxpayers, general taxpayers can receive a refund of the value added tax on fees.

Business category (industry code)

• Please choose 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 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 location lease agreement or a certified copy of the real estate registration to file the publisher report.