Business Registration Guide for Foreigners in Korea

Q: Can foreigners register as a sole proprietor?

If your visa status permits the business activity, you can register as a sole proprietor using an alien registration card or domestic residence report. Visas with restricted work rights, like a student visa (D-2), may need separate authorization first.

Q: What documents do I need for business registration?

You'll need a business registration application, a copy of your alien registration card or passport (F-4 holders use a domestic residence report), a copy of your business premises lease, and any required permits for licensed industries like food service.

Q: Can I register a business with just my passport number?

In principle, you need an alien registration card or domestic residence report. In exceptional cases, such as incorporating a company while still a nonresident, a passport number may be used temporarily, but the process is quite complicated.

Q: Can foreigners use Hometax too?

Yes, you can sign up for Hometax with your alien registration number or domestic residence report number, and use it for business registration, issuing tax invoices, and filing — almost identically to a Korean national.

Q: What happens to my business registration if my visa status expires?

Business registration isn't automatically canceled, but maintaining a valid visa status is a precondition for continuing your business, so you should handle any visa extension or status change well ahead of time. If you close the business, you'll need to file a separate business closure report.

Your Alien Registration Card Is All You Need to Get Started

If your visa status permits the business activity you want to run, you can register a sole proprietorship using your alien registration card or domestic residence report. After registration, you can sign up for Hometax with your alien registration number and issue tax invoices, file returns, and make payments almost exactly like a Korean citizen.

The Registration Process

First confirm your visa status permits business activity in your target industry

Sign a lease for your business premises

If your industry requires a license or permit, obtain it from the relevant authority first

Apply for business registration at the district tax office or through Hometax

Receive your business registration certificate and link it to your Hometax account

Required Documents

Business registration application

Alien registration card or passport copy (F-4 holders use a domestic residence report)

Copy of your business premises lease agreement

Relevant permit for licensed industries like food service

Partnership agreement, if starting the business with a partner

Tax Advantages for Foreign Entrepreneurs

You get the same tax benefits as Korean entrepreneurs

Programs like simplified VAT taxation and the startup SME tax reduction apply equally regardless of nationality, as long as you meet the requirements.

Tax invoices and filing can mostly be handled online through Hometax

Once you sign up for Hometax with your alien registration number, you can handle most of tax invoice issuance, VAT filing, and comprehensive income tax filing online.

Planning ahead for a visa status change keeps your business running smoothly

As your business grows, you may need to change your visa status (for example, to an investment-related visa) — so it's worth factoring immigration procedures into your business plan from the start.

The Most Common Mistake We See

People often start the business registration process without confirming their visa status actually permits that line of business, or they apply without realizing their industry requires a separate license — like food service — and get their application rejected.

Frequently Asked Questions

Can foreigners register as a sole proprietor?

What documents do I need for business registration?

Can I register a business with just my passport number?

Can foreigners use Hometax too?

What happens to my business registration if my visa status expires?

Related Situations

Foreign Workers

Preparing to leave your job and start a business? Wrap up your wage income filing too

Foreign Investors & FDI Company Reps

If your business grows, also consider converting to a corporation

Back to the Foreigner Tax Hub

Business Registration Guide for Foreigners