Starting a Business in Korea as a Foreigner: Company Setup, Registration and the D-8 Visa

The visa question comes first

Before anything else, confirm the visa that lets you operate. Tourists and short-stay visitors cannot legally run a business in Korea. The relevant categories are:

• D-8 investor visa — for foreign investors who establish a company or invest in one, and for those running a foreign-invested enterprise.
• D-8-4 startup visa — a streamlined category for foreign founders of innovative startups, often through the K-Startup Grand Challenge or a government-recommended route.
• F-series residence visas (F-2, F-5, F-6) — holders can generally run a business without a separate work permit.
• E-7 professional visas — allow working, but running your own business is a different matter; the D-8 is the founder route.

Which visa fits depends on your investment size, business type and whether you already hold residence.

Incorporating a company

The standard structure for a foreign-owned business is a local company — usually a joint-stock company (jusik hoesa, 주식회사) or a limited liability company. The practical steps:

1. Choose the company type and name — check the name is available and register it.
2. Draft the articles of incorporation — the founding documents stating the business purpose, capital and officers.
3. Deposit the capital — the paid-in capital is deposited in a bank account in the company’s name.
4. File for incorporation — register the company with the competent court’s registry office, which issues the registration certificate.

Under the Foreign Investment Promotion Act, qualifying foreign investment can be notified to the relevant authorities for benefits, and foreign-invested status can be registered — the details depend on the investment amount and structure.

Business registration and tax

After incorporation, the company registers for business (tax) registration at the local tax office (guksecheong, 국세청) covering its address. This gives the company its business registration number, which is needed to issue tax invoices and open a company bank account.

Also to set up:

• Company bank account — needed for capital, operations and, for staff, payroll.
• Social insurance — the company registers employees for the four major social insurance programmes (national pension, health, employment and industrial accident) through the relevant institutions.
• Office address — a registered place of business; shared offices and virtual offices are accepted in many cases but check the requirements.

Practical notes and professional help

• Engage a professional — company incorporation, the investment notification and tax registration involve Korean-language forms and rules that change; most foreign founders use a Korean corporate service or a certified public accountant (semusa, 세무사) to handle the paperwork.
• Keep the visa and business aligned — your visa status must match what you are doing; running a business on a visa that does not permit it is a violation.
• Start with a plan — the D-8 investor route requires a genuine, funded business plan, and immigration reviews the business in deciding the visa.
• Check the startup route — if your business is technology-based and innovative, the D-8-4 startup visa (often via K-Startup Grand Challenge) can be faster and carries support programmes.

Note — visa categories, investment thresholds and registration procedures change. Confirm the current requirements with the Korea Immigration Service, the Ministry of Justice and a Korean corporate service before starting.