How to Get a Business License in Korea

While South Korea is highly welcoming to Foreign Direct Investment (FDI), the process of obtaining your official business license—the Business Registration Certificate (사업자등록증, Sa-eop-ja Deung-rok-jeung)—involves a clear, multi-step legal procedure.

This guide breaks down the essential steps, required documents, and critical considerations for foreign nationals looking to establish their legal presence and begin commercial operations in Korea.

1. Laying the Foundation: Pre-Registration Essentials

Before you can officially file for your business license, several foundational decisions and preliminary steps must be completed. These choices will dictate the subsequent registration process and your ongoing legal and tax obligations.

A. Choosing Your Business Entity Type

The type of business structure you choose is the single most important factor. The options generally available to foreigners are:

Business Structure	Key Characteristics for Foreigners	Minimum Capital (FDI)
Sole Proprietorship (개인사업자)	Simplest structure. Generally, it is only available to foreigners holding specific long-term residence visas (e.g., F-2, F-4, F-5, F-6). Easy to set up.	None
Local Corporation (주식회사 or 유한회사)	Most common type. Recognized as a domestic Korean entity. Recommended for scaling and investment.	None (for non-FDI)
Foreign Direct Investment (FDI) Company	A local corporation with KRW 100 million or more in foreign capital (or ≥10% of voting shares). Grants eligibility for the D-8 Investor Visa and certain tax benefits.	$\text{KRW } 100 \text{ Million}$ (approx. $\text{USD } 75,000$)
Branch Office (지사)	An extension of an overseas parent company can conduct profit-generating activities, but is not a separate legal entity.	None
Liaison Office (연락사무소)	Restricted to non-commercial activities (market research, R&D); cannot generate sales or profit.	None

B. Visa and Residency Requirements. 

In the case of foreigners who want to run a Korean company, the right visa is a must.

• D-8 (Investment Visa): This is the major route for foreign investors and corporate investors. This usually demands a KRW 100 million minimum investment to incorporate an FDI company.

• D-8-4 (Technology and Startup Visa / OASIS): A points-based program for people of high skills or intellectual property.

• F-visas (e.g., F-4 Korean Resident, F-5 Permanent Resident): The holders of such visas have an opportunity to open a simple sole proprietorship relatively easily.

If you are overseas or can not visit Korea for incorporation, business registration can proceed through a notarized Power of Attorney (POA).

C. Obtaining a Registered Office Address.

One of the requirements is a registered office address in South Korea. You are going to require a lease agreement (Imdaecha Gye-yak-seo) to demonstrate the physical location of your company. Depending on the nature of your business, you may need your own office, a co-working space, or even a virtual office. Virtual offices are accepted by many tax offices, but approval varies by district; businesses with on-site activities (F&B, manufacturing, etc.) must secure a physical site.

2. The Two-stage Registration Process.

The process of obtaining the business license consists of two steps: first, Corporate Registration (Court Registry), and second, Business Registration (Tax Office).

Stage 1: Corporate Registration (Court Registry)

This is the legal establishment of your company. The incorporation documents will be filed in the local District Court Registry Office (deunggiso). It is a complicated process, and it is nearly always performed by a legal expert (Korean-licensed lawyer or judicial scrivener - Beop-mu-sa).

1. Foreign Investment Notification: In case of FDI companies, the investment is to be reported to a specified Foreign Exchange Bank (FEB). The bank will issue a Foreign Investment Notification Certificate.

   
   

2. Capital Remittance: The minimum capital (to invest in FDI) is sent to a temporary capital custody account at the FEB. The bank will issue a Capital Deposit Certificate.

   
   

3. Draft Articles of Incorporation (AOI): This is a detailed document that will describe the purpose of the company, the company structure, the management, and shareholding. It has to be ready and signed by a notary.

   
   

File Documents: Director/shareholder documents, evidence of capital, and others are filed at the Court Registry.

After this, the court gives out the Certificate of Corporate Registration (Beop-in Deung-gi Bu Deung-bon) that legally registers your company.

Stage 2: Business Registration (National Tax Service)

The second step is to register the company with the National Tax Service (NTS) (국세청), typically through the local Tax Office (Se-mu-seo). This is where you obtain your final business license.

The application for the Business Registration Certificate (Sa-eop-ja Deung-rok-jeung) must be filed within 20 days of the official incorporation date (or the start of commercial activities).

Required Documents for NTS Submission:

1. Business Registration Application Form (Available at the Tax Office or NTS Hometax website).

2. Certificate of Corporate Registration (from the Court Registry in Stage 1).

3. Articles of Incorporation (A copy).

4. Copy of the Lease Agreement for the office address.

5. Shareholders List .

6. Copy of the Legal Representative/Director’s Passport or Alien Registration Card (ARC).

7. Foreign Investment Notification Certificate and Capital Deposit Certificate (for FDI companies).

8. Power of Attorney (if a representative is filing on your behalf).

The Tax Office typically issues the Business Registration Certificate within 3-7 business days of submission. This document contains your official Business Registration Number (BRN), which is essential for all commercial transactions, banking, and tax filings.

3. Post-Registration Compliance: What’s Next?

Getting the license is only the beginning. You must immediately address several post-registration compliance requirements to operate legally.

A. Corporate Bank Account Opening 

With the Business Registration Certificate, you can now open a corporate bank account at a Korean bank. This account is legally separate from the temporary capital account used in Stage 1.

The bank will require the following:

• Business Registration Certificate

• Certificate of Corporate Registration

• Certificate of Corporate Seal Impression and the actual Corporate Seal (In-gam)

• ID of the legal representative

B. Industry-Specific Licensing

Certain industries require additional permits or licenses before commencing operations. And some sectors such as real estate brokerage or medical services have nationality restrictions.Examples include:

• Food & Beverage (F&B): Requires hygiene and safety certificates from the local district office (Gu-cheong).

• Telecommunications: Needs registration with the Ministry of Science and ICT.

• Finance/Securities: Requires licensing from the Financial Services Commission.

You must check with the relevant government body to ensure you meet all industry-specific regulatory requirements.

C. Tax and Social Insurance Registration

Immediately upon receiving your BRN, you must register for:

• Value-Added Tax (VAT): Standard VAT is 10% and must be filed quarterly or semi-annually.

• Corporate Income Tax: Due annually.

• Social Insurance Enrollment: If you hire employees (including yourself as a director), you must register them for the mandatory National Pension, National Health Insurance, Employment Insurance, and Industrial Accident Compensation Insurance.

4. Timeframe Overview

The overall timeline differs depending on whether the structure involves FDI, the availability of required documents, and the speed of notarization/legalization abroad.

Below is a general reference that most foreign clients can expect:.

Step	Estimated Duration	Notes
Corporate Name Check & Initial Preparation	~1 week	Depends on document readiness and shareholder structure.
Foreign Investment Reporting (if applicable)	~1–2 weeks	Bank review timelines vary.
Corporate Registration (Court Registry)	~1–2 weeks	Additional verification may be requested for foreign documents.
Business Registration (Tax Office)	~1–5 days	Address verification is the key factor.

Total Estimated Time:

2–8 weeks, depending largely on FDI status and overseas document processing.

Note: The biggest variable is the time required for notarization, apostille, or consular legalization of foreign documents. Starting that process early significantly shortens the overall timeline.

Conclusion: Partnering for Success

South Korea's commitment to foreign investment is evident in its streamlined processes, but the legal and tax documentation remains entirely in Korean. Navigating the specific requirements for different visa types, the nuances of the Commercial Code, and the multiple government agencies can be challenging for non-native speakers.

To ensure a smooth, compliant, and efficient registration process, it is highly recommended that foreign entrepreneurs partner with a local, licensed professional—be it a law firm, certified public accountant (Gong-in Hoe-gye-sa), or judicial scrivener (Beop-mu-sa)—who specializes in foreign investment. This expert assistance will save you time, prevent costly mistakes, and allow you to focus on what matters most: building your successful business in the Land of the Morning Calm.