D-8 Visa (D-8-1) New Corp Invitation (CCVI), D-8-3 Korean Co-CEO, Sole Proprietor, KRW 100M Investment, Advanced Guide
- dongsuk cha
- 2 days ago
- 7 min read
Today, we will examine the differences and points to note when comparing this to a general change of status, specifically regarding the case where an investor enters Korea after obtaining a D8 visa via an Application for Visa Issuance Recognition (Invitation) following the establishment of a new corporation in Korea or an investment of 100 million KRW or more in an existing domestic corporation—which is considered to be somewhat more difficult among D8 visas (D-8-1). I will not cover basic details such as the overall procedures. Please refer to the link below for basic information.
The first thing to consider is that you must find a business location to serve as the corporate address when the person set to become the CEO is not currently in Korea. It is somewhat easier if you have an existing Korean acquaintance and invest (increase capital) in a corporation operated by that acquaintance. However, if this is not the case, a third party in Korea must be authorized to lease the business location.
In the case of leasing under authorization, the investor's passport number must be included in the lease agreement when drafting it. Subsequently, a new lease agreement must be drawn up in the name of the corporation after its incorporation. The above details are identical to the procedures for a new corporation when changing qualifications.
※ When investing in an existing domestic corporation, there is no need to obtain a separate virtual account after filing the foreign investment report. This is because it is possible to transfer investment funds directly from overseas to the domestic corporation. Furthermore, the foreign currency investment funds are converted into Korean Won simultaneously with the transfer to the corporate account.
Foreign investment notification can also be filed by a third party using a power of attorney that has been officially verified (Apostille or consular authentication by the South Korean embassy in the relevant country). Additionally, if the investor has transferred the investment funds after filing the notification, they can proceed with the registration of incorporation by obtaining a certificate of balance.
※ In the case of a newly established corporation, transfer funds to a virtual account in the investor's name after filing the investment report; subsequently, open a KRW account in the investor's name, exchange the currency, and transfer the funds to the investor's personal account; then, obtain a balance certificate and register the incorporation, and finally transfer the funds back to the corporate account.
If the investor is located overseas, they cannot personally visit a notary office to obtain notarization regarding the incorporation of a company. Depending on the situation, a third party may notarize a power of attorney specifying the authority to act on behalf of the investor, or the process may proceed by obtaining official verification from the relevant country for the investor's seal registration form, acceptance of appointment, and official documents proving their address. (In the case of a joint-stock company)
I understand that there are working professionals who refer to my posts regarding the D8 visa.
If you are proceeding with the registration of incorporation using a Seal Registration Form and a Letter of Acceptance of Appointment instead of a Power of Attorney, you must prepare and send them to the client. Furthermore, you must instruct them to translate these documents into English and obtain an Apostille or Consular Authentication. In most cases, Seal Registration Forms and Letters of Acceptance of Appointment prepared locally by the client themselves cause problems during the registration process due to the omission of required information or other reasons.
Furthermore, it is obviously unacceptable to simply request an Apostille for corporate-related documents. You must request that immigration-related documents be apostilled as well in a single request. While neighboring countries like Japan, China, and Mongolia are relatively faster, processing for distant regions such as Northern Europe or South America can take a long time. Moreover, obtaining an Apostille two or three times results in higher costs for the client and delays the process accordingly. (While some documents are eligible for electronic Apostille, many are not; in such cases, the original Apostilled documents must be shipped via international mail.)
Therefore, you must provide guidance on how to clearly identify the documents requiring an apostille for the registration of a new corporation (or capital increase in the case of investing in an existing corporation) and the documents requiring an apostille for the application for an immigration D8 visa (related to the source of investment funds) so that they can be apostilled all at once.
※ The corporate-related documents requiring an Apostille vary depending on whether it is a joint-stock company or a limited liability company, and whether the investment is made by an individual or a foreign entity. The above cases apply only to instances where an individual invests in a domestic joint-stock company.
※ If the address is on the ID, you must provide the ID (driver's license in the case of the U.S.); if the address is not on the ID, you must obtain an Apostille or Consular Authentication for an official document from the relevant country that verifies the investor's address.
This time, let's look at which documents need to be apostilled regarding the source of investment funds for a D8 visa. The documents required for apostillation regarding the source vary widely depending on the investor.
This is because the source—that is, the origin—is truly different for each investor; it could be inherited or gifted from parents, sold real estate, earned through a business, or made while working for a company.
However, if I were to suggest a guideline, it is that you should obtain an Apostille for documents that are more of an official document than a private document, if possible.
For example, in the case of a real estate sale, rather than a sales contract (a private document), the required documents are the certified copy of the real estate register issued after the sale (showing the history of ownership changes between the seller and buyer) and the capital gains tax payment statement. A sales contract can be fabricated if one attempts to do so. However, since the capital gains tax payment statement and the real estate register are official documents of the respective country, it is impossible to obtain them without forgery.
In addition, if the funds were received from parents, documents related to family relationship (or birth certificate) and inheritance or gift are required; if earned through business, a local business (corporation) registration certificate is required; and if earned while employed, a certificate of work experience and a certificate of employment are also required as source-related documents that need Apostille or consular authentication.
Although certificates of work experience and employment are private documents, it can be difficult to find other public documents to submit as evidence when investment funds were raised while employed.
Therefore, in the above cases, the company's business registration certificate and certificate of employment or career history are usually submitted after obtaining an apostille.
※ Forging official or private documents against government agencies is a crime. It is one of the things that overseas diplomatic missions and domestic immigration offices dislike the most, and you could be banned from entering the country for several years. I have actually seen cases where people were banned from entering.
The standards for obtaining an Apostille or consular authentication vary by country.
First, there are countries where an Apostille or Consular Recognition is possible after authentication by the relevant Ministry of Foreign Affairs, and there are countries where it is possible after notarization by the relevant competent authority. Furthermore, not just any document can receive official recognition (Apostille or Consular Recognition). In the case of documents with a strong nature as private records (such as sales contracts in the case of real estate sales), there are countries where official recognition is impossible at all (e.g., Nepal).
※ Although certificates of work experience and employment are private documents, they can be officially verified in most countries. In all the countless E7 visa applications I have submitted so far, I have never encountered a country where an Apostille or consular verification of a certificate of work experience is impossible.
The following is the answer to a frequently asked question.
Q. Do I need to obtain official verification (Apostille or Consular Recognition) for local bank-related documents, such as bank transaction statements and transfer (remittance) statements?
ANSWER: No. I have never once been asked by the Immigration Office to obtain an apostille for bank-related documents while applying for a new D8 corporation.
Let's clarify the concept. Bank-related documents are closer to showing the flow of investment funds rather than documents regarding the source of ownership. Furthermore, asking about the source means inquiring about where the money came from. In other words, asking about the source is asking "where did you get the money?" not "how did you send the money?" or "how did you bring the money?"
However, regarding that flow, you must also check and submit local bank transaction statements, etc., so that the immigration officer can verify it clearly.
Q: I received a D-8-3 visa. Can I change it to a D-8-1 visa?
D-8-1: Invest 100 million KRW or more in a domestic corporation
D-8-3: Invest 100 million KRW or more in a Korean sole proprietorship (listed as a co-representative with a Korean on the business registration certificate)
ANSWER: While not a common occurrence, it does happen occasionally. If you operated a sole proprietorship as a co-representative with a Korean national and converted it into a corporation due to tax issues arising from increased revenue, you can no longer qualify for the D-8-3 status. This is because the investment target itself has changed. In this case, there is no need to apply for a change of status to D-8-1 well before your period of stay expires.
You may apply for an extension when the time comes. However, while it is an extension, it is not a simple extension. Since the detailed code has changed, the review process itself is identical to a qualification change review. You must prepare the documents in accordance with the qualification change review criteria. (Investment funds of 100 million KRW or more must be transferred to the corporation.)
Q: I am planning to apply for a D-8-3 visa. Does the Korean co-business partner also need to have a bank balance of at least 100 million won?
ANSWER: The requirements for the D-8-3 visa state that the business capital of a national co-partner must be 100 million won or more.
Therefore, it seems that people commonly consider bank account balances as proof of business funds. However, it is not mandatory for the account balance to be 100 million won or more. The key lies in the respective investment amounts and actual investment status of the foreign investor and the Korean representative. For example, if the Korean investor's 100 million won was used for a lease deposit, facility purchases, or business-related supplies, it is difficult to consider the requirements as not met simply because there is no balance exceeding 100 million won. Therefore, if objective documents can prove how the Korean investor's 100 million won was used, a bank balance of 100 million won or more is not strictly required.
Comments