Goyu-beonho-jeung). The process might seem complex, but I'm here to provide a clear and concise guide.
Why You Need a Unique ID Number (Goyu-beonho-jeung)
This Unique ID Number is essentially a tax identification number for non-profit voluntary associations. It's vital for opening a bank account under the organization's name and managing finances transparently. Having one secures the credibility of your group and allows it to function officially, which is key for applying for government grants or participating in various public projects.
Types of Associations
Voluntary associations are classified as either a "Group considered as an Individual" or a "Group considered as a Corporation." Most non-profits choose the latter due to its simple registration process. Opting for this classification means that your organization's assets and agreements are tied to the group itself, not to an individual representative. This ensures the continuity of the group's legal identity, even if the representative changes.
The Procedure
The process for establishing a voluntary association is straightforward:
Gather Members and Draft Regulations: You need at least two members. Draft a set of regulations (the "Jeong-gwan") that outline your group's purpose, name, and activities.
Hold an Inaugural Meeting: Conduct an inaugural meeting to officially appoint a representative and finalize the regulations. Be sure to create a detailed meeting record (
Uisa-rok).Prepare Application Documents: Collect all necessary documents for submission to the tax office.
Submit to a District Tax Office: Submit your complete application package to the local tax office with jurisdiction over your group's office location.
Required Documents & Processing Time
Essential documents include the application form, your organization's regulations, the meeting record, a representative appointment form, a member list, and proof of your office location. For foreign-led groups, you'll also need to attach copies of the representative and members' Alien Registration Cards or passports. Processing typically takes 3 to 10 days.
The Benefits
Transparent Financial Management: Open a bank account in your group's name to manage funds transparently.
Official Credibility: Gain public trust and qualify for external projects and funding.
Tax Benefits: Handle your group's non-profit activities and finances appropriately under Korean tax law.
Onhaeng's Practical Tip
Any missing document can cause delays. For foreign-led groups, having an administrative expert guide you through the process can save time and prevent errors. It's especially important to ensure documents like Alien Registration Cards and passports are properly prepared.
Conclusion
Establishing a voluntary association in Korea is a significant step towards legitimizing your group's efforts. The process is not as difficult as it seems, and the benefits are well worth it. If you have any questions or need assistance, please feel free to reach out to me, your expert. Onhaeng is here to help!
