Business Registration for Foreigners

At a glance

• Deadline: within 20 days from the start of business; a person about to start a new business can also apply before the start date.
• Where: the tax office with jurisdiction over the place of business or another tax office of your choice, including submission via the national tax information network (Hometax).
• The business registration certificate is issued within 2 days from the application date, extendable within 5 days if the place of business needs checking.
• Registration under the VAT Act also counts as business registration under the Income Tax Act.

Who needs to do this

• Anyone starting a new business must register each place of business regardless of nationality.
• With two or more places of business you can register as a single business unit at the tax office of the head office or main office.
• Foreigners may stay only within the scope of their status and period of stay, and must obtain permission for activities outside their status in advance to engage in activities of another status.
• This guide does not assess which statuses allow business. Check with the immigration office with jurisdiction or 1345 (Immigration Contact Center).

Where to apply

• The tax office with jurisdiction over the place of business. An application to another tax office is treated as made to the competent one.
• You can also submit the application via the national tax information network (Hometax).
• Enquiries: NTS call center 126, no area code (NTS guidance).

What to bring

• Business registration application (for individual businesses)
• If you lease the place of business, a copy of the lease; if you lease only part of a commercial building, a drawing of that part
• For businesses needing a permit, registration or report, a copy of it. If you register before obtaining it, a copy of the application or a business plan can replace it.
• For a joint business, the partnership agreement (NTS guidance)
• Foreigners: a copy of the residence card (or passport). Overseas Korean nationals submit a copy of the overseas national registration (NTS guidance).
• If you do not usually stay at the place of business or will stay abroad for 6 months or more, a report appointing a tax administrator (NTS guidance)

Fees

• No application fee is set for business registration.
• If you do not apply by the deadline, a penalty tax of 1% of the total supply value from the start of business to the day before the application is added.

Steps

• Step 1: Check whether your current status allows that business and, if needed, first obtain permission for activities outside your status from the immigration office.
• Step 2: For licensed businesses, obtain the permit, registration or report, or prepare a copy of the application or a business plan, and sign the lease for the place of business.
• Step 3: Within 20 days from the start of business, submit the application and attachments at the tax office or via Hometax.
• Step 4: The tax office issues the certificate within 2 days from the application date (extendable within 5 days if the place of business is checked). If corrections are needed, it sets a period of up to 10 days, which is not counted toward the issuance period.

Common sticking points

• If you apply before starting and it is recognized that you will not actually start the business, the tax office may refuse registration.
• Missing the deadline adds a penalty tax of 1% of the total supply value.
• After registering, you must report without delay to the tax office if you suspend or close the business or the registered details change.
• A business registration certificate does not mean your status of stay allows the business. Activities outside your status without permission can violate the Immigration Act.

This guide is general information and does not assess any individual case. Laws and fees can change, so check the original text via the official links and with the competent office.