3 company types foreigners can set up
In Korea, foreigners can set up a limited company, a corporation, or a branch (representative office).
Limited company (Yuhan Hoesa) is quick, no minimum capital. Popular for small startups. Takes about 2–3 weeks.
Corporation (Chusik Hoesa) is good for outside investment, but complex and takes 4–8 weeks. Ideal for startups seeking funding.
Pick a branch if you want to contract/sell in Korea but can't set up a separate entity.
A branch has no separate legal entity; the head office is liable. Takes about 2 weeks.
Limited vs Corp vs Branch: side‑by‑side view
Tap to see which type fits you.
Setup routes by visa: D‑8 not required
Choose your visa type.
F‑2, F‑5, F‑6 holders don’t need the KRW 100M investment that D‑8 requires.
You can set up a limited or corporation almost like a Korean citizen.
E‑7 ties to a specific job and employer.
To start a company yourself, you need a separate activity permit from immigration.
D‑8 is a foreign investment visa. You need KRW 100M investment to get D‑8, not just to set up a company.
If you already have long‑term visas like F‑2, F‑5, F‑6, you can start a business without switching to D‑8.
Full setup doc checklist (incl. notarization & translation)
Check off each item as you go. Status saves automatically.
Step‑by‑step process and timeline estimate
Limited company takes 2–4 weeks total. Prep docs early to speed up.
You must register at tax office within 20 days of incorporation.
Miss the deadline? Pay 1% of supply amount as penalty.
① Draft and notarize articles
Write articles with name, purpose, capital structure. Foreigners need notarized signature.
② Court registration (incorporation)
Apply online at Supreme Court registry. Registration tax KRW 30,000–50,000.
③ Get business license
Within 20 days, apply at nearest tax office or HomeTax online.
④ Open corporate bank account
After getting license, go to bank with passport, ARC, company docs.
Realistic total setup cost: includes hidden fees
Below are costs excluding capital. In Seoul dense‑area (Gangnam, Mapo), registration tax can be up to 3× higher than other regions.
| Item | Amount | Note |
|---|---|---|
| Court registration tax | KRW 30,000~50,000 | |
| Capital registration tax | 0.48% of paid‑in capital | 1.44% in Seoul dense‑area |
| Company seal production | KRW 50,000~100,000 | |
| Virtual address service (monthly) | KRW 50,000~150,000 | When no physical office |
| Notary & translation fees | $200~$500 | Depends on document type/volume |
| Agent fee (total cost basis) | $3,000~$8,000 | Excluding capital |
Post‑setup taxes: corporate tax, VAT, 4 social insurances
Korea corporate tax (2026) is 10%, 20%, 22%, 25% based on taxable income.
Add ~2.5% local income tax. Tax return due within 3 months after fiscal year end. For Dec‑year companies, deadline is end of March.
VAT is 10%. Export/foreign services are 0%. Report in Jan and July each year.
Hire staff → must join National Pension, Health, Employment, and Industrial Accident insurances.
Report to Health Insurance and Labor Welfare within 14 days of hiring.
Example: Tax base KRW 200M → 20% = KRW 40M corporate tax (+ ~KRW 1M local tax).
Remittance rules: sending profit back home
You can send up to $100,000 abroad yearly without docs. Limit raised July 2023.
Transfers over $10,000 auto‑report to tax office. Carrying >$10,000 cash out requires customs declaration.
Wise doesn’t support direct KRW withdrawals now.
Use WireBailey or Sentbe instead. Each has ~ $50,000 yearly limit.
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