How to Start a Business in Korea
The Republic of Korea offers many opportunities for budding entrepreneurs.
It is not an impossible task to open a business. From start to finish it takes
about two weeks to have your business up and running in Korea. Foreigners who
wish to do business need to show their ability to invest a substantial sum in
the country. Very precise steps and the correct paperwork need to be filed to
receive the proper documentation for your business.
Travel to Korea or inquire with your local Korean embassy about whether
citizens of your country need a travel visa to enter Korea.
Use time during your initial arrival to research business opportunities
that might interest you. You cannot earn money or have employment for six
months when you first arrive in Korea .
Open a Korean bank account. This shows your ability to invest in Korea.
Your passport is the only documentation required. Arrange to have the
equivalent of 50 million won (about $40,900 in U.S. dollars) wired from an
account outside the country in your name to the Korean bank account you have
opened in your name. The deposit must be in a lump sum and designated "For
Investment Purposes Only." Use an online currency conversion chart to
calculate the what the amount is in your home currency.
Receive documentation from your Korean bank after making your deposit to
start the paperwork for your business.
Inquire at your local district office if your business requires permission
to open. There are 16 district offices in South Korea, one in each major
province. If necessary, apply for the permission.
Find a location for your business. Make sure the property is zoned for the
type of business you wish to run. Ask before signing your contract if you can
live and work on the same property.
Fill out the paperwork to register your business name. Take your bank
account documents and real estate lease to your local district office. Business
names must be registered in hangeul, the Korean alphabet. If you are not
familiar with hangeul, hire a local to assist with your paperwork. This could
be a high school student studying English or a professional translator. Submit
your documents and the application with required fees for processing.
Processing can be done on the same day or you can return for your paperwork.
Make sure you retrieve your original documents.
Apply for a tax registration payment certificate. Copies of this
certificate accompany every business transaction you make. The local district
office issues the certificate when you present your passport, business name
registration and bank account documentation.
Nominate a tax agent for your business. The agent assumes financial
responsibility for your business and makes sure your taxes are paid if you out
of the country. This is typically a role given to a Korean tax accountant who
gives you documentation for your next and final step.
Apply for your D-8 visa. This visa allows you to live in Korea and make
money. Present copies of the following items: your visa application or a
previously issued, valid visa, your passport, your business registration
certificate, tax certificate, documents from your tax agent, proof in writing
from your homeland bank that it sent the investment money, your office lease
and your bank book. The D-8 visa is valid for six months and extended with
proof your taxes are current and documentation such as receipts and invoices
show your business is thriving.
