If you want to open a shop or establish a company in Korea and engage in profit-making activities (commercial activities) on your own, you must first hold a residence status that permits those activities. If your visa type does not match, registering a business may still constitute an unauthorized activity outside the scope of your visa, and you may face disadvantages. Be sure to confirm your status before you begin. This guide covers, in order: visa types that allow business operations, the business registration procedure and required documents, tax and four major insurance obligations, and start-up support available to you.

Process Overview

  1. 1. Confirm Residence Status

    First check whether your visa permits profit-making activities. If it does not, you will be in unauthorized activity status, so you must change your residence status beforehand if necessary.

  2. 2. Obtain Required Licenses and Permits

    For business types such as restaurants or beauty salons that require permits, you must complete the authorization or notification process at the relevant district office (gu office) or city hall before registering your business.

  3. 3. Sign a Lease for Your Business Premises and Prepare Documents

    Sign a lease agreement for your business premises, and gather the required documents: the business registration application form, your alien registration card, a copy of the lease agreement, and any other required materials.

  4. 4. Apply for Business Registration

    Visit the tax office with jurisdiction over your business premises, or apply online through the National Tax Service Hometax system. The business registration certificate is usually issued within a few days of application.

  5. 5. Fulfill Tax and Four Major Insurance Obligations

    File and pay value-added tax and comprehensive income tax within the prescribed periods. If you hire employees, additional obligations arise, including enrolling them in the four major insurance programs and contributing to the premiums.

Residence Statuses That Allow Business Operations

Not just any visa permits profit-making activities in Korea. Just as with employment, operating a business requires that such activity be permitted under your residence status. The following residence statuses generally allow business registration and profit-making activities.

  • Residence (F-2) · Permanent Residence (F-5) · Marriage Immigrant (F-6): These statuses allow relatively free engagement in business. They are typically held by people who have a Korean spouse or whose long-term settlement has been recognized, and in most cases it is possible to run a shop or company without any separate investment requirement.
  • Corporate Investment (D-8): This status is for foreigners who establish and directly manage a company in Korea. As a general rule, at least KRW 100,000,000 must be brought in from abroad as investment, and the status presupposes the establishment and operation of a corporation or business entity rather than simple self-employment.
  • Trade and Business Management (D-9): This status is for trade transactions or profit-making business activities, and requires that certain business scale and eligibility requirements be met before it is issued.

Even within the same visa category, the scope of permitted activities may differ from person to person, and the eligibility requirements change frequently. It is safest to confirm before preparing to start a business exactly which types of business your visa permits and whether any additional notifications are required.

Business Registration Procedure

If you hold a residence status that permits profit-making activities, follow the steps below to register your business. Business registration is the most fundamental step for starting a shop or company, and serves as the basis for tax filing and transactions.

  1. Decide on a business location and prepare a lease agreement. Because the address stated in the lease becomes your official business address, confirm in advance that the details in the contract are accurate.
  2. Visit the tax office with jurisdiction over your business premises in person, or apply for business registration online through National Tax Service Hometax. The business registration certificate is normally issued within a few days of application.
  3. Prepare the required documents. These include the business registration application form, your alien registration card (or passport), a copy of the lease agreement, and, depending on the type of business, a license or permit certificate.
  4. If your business type, such as a restaurant or beauty salon, requires a sector-specific license or permit, you must complete the authorization or notification process at the relevant district office or city hall before registering your business. Many business types must meet hygiene and safety standards, so it is best to first confirm what licenses or permits are required.

If you are starting a business under the D-8 (Corporate Investment) status, foreign investment notification and other separate procedures must be completed before business registration. Steps such as transferring the investment funds, incorporating a company, and registering as a foreign-invested enterprise follow in sequence, so it is important to follow the procedure accurately from the beginning.

Tax and Four Major Insurance

Once you become a business operator, you have obligations to file and pay taxes. Business operators must file and pay value-added tax (VAT) and comprehensive income tax within the prescribed periods. VAT is generally filed a set number of times per year, and comprehensive income tax requires you to report the income earned throughout the year in a return filed the following year. For instructions on how to file taxes and the schedule, refer to the Tax Filing Guide for Foreigners.

Hiring employees adds further obligations as a business owner. Obligations arise including enrolling employees in the four major insurance programs (National Pension · National Health Insurance · Employment Insurance · Industrial Accident Compensation Insurance) and contributing to the premiums, executing employment contracts, and paying wages. It is advisable to understand what a business owner is responsible for before hiring anyone. Employee rights and business owner obligations can also be found in Labor Rights Basics.

Available Support

When starting a business for the first time, it is easy to lack information and funding. The organizations below assist people preparing to start a business. Do not struggle alone; please seek consultation.

  • Small Enterprise and Market Service (SEMAS): Operates a wide range of programs for small business owners, including start-up education, business funding support, and management consulting (1357). You can receive help at the stage of developing your business idea or building a financial plan.
  • Some local governments and immigrant support organizations run start-up education and consultation programs for residents with immigrant backgrounds. Some locations provide interpretation or consultation in your native language, so please contact the Foreign Resident Support Center or the Multicultural Family Support Center in your area.

Because regulations and eligibility requirements change frequently, please confirm the latest information with 1345 (Immigration Contact Center) and your local tax office or Immigration Office before preparing. Guidance is available in multiple languages through 1345, so if Korean is difficult for you, refer to the 1345 Immigration Contact Center Usage Guide.

Common Mistakes and Tips

  • Proceeding directly to business registration without checking your visa: Business registration itself may proceed independently of your visa status, but operating a business under a residence status that does not permit profit-making activities constitutes unauthorized activity and may result in disadvantages. Confirming your eligibility comes before registration.
  • Overlooking sector-specific licenses and permits: Business types such as restaurants, beauty salons, and food retail cannot operate on business registration alone. You must first complete the required authorization or notification at the relevant district office or city hall.
  • Missing tax filing deadlines: VAT and comprehensive income tax must be filed within the prescribed periods, and late filing may result in additional penalties. It is helpful to mark the filing dates on a calendar in advance.
  • Trying to handle everything on your own: The procedures can be complex and the terminology difficult. It is safer to seek assistance from the Small Enterprise and Market Service (SEMAS), an immigrant support organization, or, if necessary, a tax professional.