Guide to Korea Company Formation for Foreign Nationals: D-8 Visa Process and Requirements

Starting a business in Korea as a foreign national involves securing a D-8 visa, an essential step in managing the legal requirements for foreign business operations in the country. This guide provides potential entrepreneurs and professionals with vital information on eligibility and the D-8 visa application process, highlighting key considerations like employment restrictions, duration of stay, and financial documentation—critical for smooth market entry.

D-8 Visa Overview

The D-8 visa, also known as the "Corporate Investment Visa" or "Foreign Company Employee Visa," is intended for individuals representing foreign businesses engaged in trade or investment with Korean enterprises. This visa covers short-term business activities but does not grant residency or allow employment with Korean companies.

Eligibility Criteria

To qualify for a D-8 visa, applicants must meet certain criteria:

1. Employment with a Foreign Company: Applicants need to be employed by a foreign company actively trading or investing in Korea.
2. Invitation Letter: The foreign company must provide an invitation letter specifying the purpose and duration of the applicant's stay.
3. Duration of Stay: The initial stay period should not exceed six months.
4. Clean Criminal Record: Applicants must present a clean criminal record from both Korea and their home country.
5. Financial Resources: Applicants must show evidence of sufficient funds to support their stay in Korea.

Application Process

Applying for the D-8 visa requires an invitation letter and submission of the following documents:

• Passport: Must be valid for at least six months beyond the intended stay.
• Application Form: Complete the D-8 visa application form available on the embassy or consulate’s website.
• Photograph: Provide a passport-sized photo.
• Invitation Letter: Include the invitation letter from the foreign company.
• Business Registration Certificate: Submit the foreign company's registration certificate.
• Proof of Employment: Include documents verifying employment with the foreign company.
• Financial Documents: Demonstrate financial capability to support the stay in Korea.

Visa processing typically takes five business days, after which approved applicants can travel to Korea to perform their assigned duties for the foreign company.

Important Considerations

1. Employment Restrictions: D-8 visa holders are limited to working only for the sponsoring foreign company, with no engagement in Korean firms.
2. Visa Extension: Extensions beyond the initial six months are available but must be requested before the visa expires.
3. Tax Obligations: D-8 visa holders are subject to Korean income tax and may also face tax obligations in their home country.
4. Visa Revocation: Violating visa conditions or engaging in illegal activities can lead to visa cancellation by Korean authorities.

Conclusion

The D-8 visa is indispensable for foreign nationals aiming to conduct business in Korea, particularly in company formation. This guide provides an overview of eligibility requirements, application steps, and visa conditions, essential for navigating Korea’s regulatory landscape. Foreign entrepreneurs and professionals establishing businesses or partnerships in Korea must comply with D-8 visa guidelines, which include temporary status and specific employment limitations.

Pearson & Partners Korea, a consulting firm specializing in Korean market entry, offers expert guidance to foreign businesses on compliance and incorporation. Their support spans everything from regulatory requirements to tax accounting, ensuring a streamlined entry for foreign entities into Korea’s business scene. For tailored advice and support on your Korean business journey, contact Pearson & Partners.