I. Legal basis

Law on Enterprises 2020.

II. Can a sole proprietorship contribute capital upon establishment of other companies?

A sole proprietorship is an enterprise owned by a single individual whose liability for its entire operation is equal to his/her total assets.

An individual may only establish one sole proprietorship. The owner of a sole proprietorship must not concurrently own a household business or hold the position of general partner of a partnership.

A sole proprietorship must not contribute capital upon establishment or purchase shares or stakes of partnerships, limited liability companies or joint stock companies.

III. Can a sole proprietorship be converted into a limited liability company, joint stock company or partnership?

The owner of a sole proprietorship may convert it into a limited liability company, joint stock company or partnership if the following conditions are fully satisfied:

• The sole proprietorship satisfies the conditions to be granted the Certificate of Enterprise Registration
• The owner makes a written commitment to take personal responsibility for all unpaid debts and pay them when they are due with all of his/her assets;
• The owner has a written agreement with the parties of ongoing contracts that the new company will take over and continue executing these contracts.
• The owner shall make a written commitment or agreement with other limited partners to continue hiring the existing employees of the sole proprietorship.

IV. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm

Website: http://hankuklawfirm.com/en/  Facebook: https://www.facebook.com/hankuk.lawfirm  Tiktok: https://www.tiktok.com/@opineslang  Youtube: https://www.youtube.com/@hankuklawfirm6375 Email:  info@hankuklawfirm.com   Telephone: (English) 0369.77.11.46