Introduction
When opening a business account in Korea, you might encounter unexpected restrictions on sending payments. These limitations can be frustrating, especially when you need to make important transfers like tax payments. Here's what you need to know about these restrictions and how to overcome them.
Initial Restrictions
Upon first opening a business account, banks often impose strict limits on the amount you can transfer. These restrictions are typically set around 1 million won (approximately $850 USD). While this might seem sufficient for day-to-day operations, it can become problematic when dealing with larger transactions, such as paying taxes or transferring personal income.
The Frustration of Limited Transfers
Many business owners, myself included, initially focus on generating revenue without considering how these transfer limits might affect their operations. The realization often comes at an inconvenient time - for instance, when trying to pay taxes. It can be incredibly frustrating to find that you can't execute a transfer to a government bank due to these restrictions.
Lifting the Restrictions
Fortunately, these limitations can be lifted by providing the right documentation to your bank. Here's what you'll need:
- 표준재무제표 (Standard Financial Statements) - You can obtain this from your accountant
- 소득금액증명서 (Income Amount Certificate) - Also available from your accountant
- 인감증명서 (Ingam-jeungmyeongseo or Seal Certificate) - Not older than 3 months
- 법인 등기부등본 (Corporate Register Copy) - Not older than 3 months
- 사업등록증 (Business Registration Certificate)
- 주주명부 (List of Shareholders)
- 회사인감 (Company Stamp) - This is an official seal used for corporate documents
Additionally, it's important to note that banks may now conduct a physical verification of your business address. They might send a representative to visit your office to confirm its existence. This measure has been implemented due to an increase in 'paper companies' - businesses that exist only on paper without a real physical presence.
Obtaining the Necessary Documents
You can obtain these certificates at designated Community Centers using your 법인등록카드 (Corporate Registration Card). For instance, I went to 마포구청 (Mapo-gu Office) to get mine.
Pro tip: You can print out multiple documents at once. I recommend getting 5 copies each of the 인감증명서 and 법인 등기부등본 to avoid frequent trips to the community center. Each document costs 1000 won.
Conclusion
While these initial restrictions can be frustrating, they're not insurmountable. By preparing the necessary documents in advance, you can quickly lift these limitations and ensure smooth operation of your business finances in Korea. Remember to plan ahead, especially when anticipating large transfers or tax payments, to avoid any last-minute complications.
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