Starting a company in Japan is increasingly accessible for both locals and foreigners. The process is streamlined, but it requires careful preparation and understanding of local regulations. Here’s a comprehensive guide you can use for your plan.
1. Choose Your Business Structure
The most common types of companies in Japan are:
- Kabushiki Kaisha (KK): Similar to a joint-stock corporation.
- Godo Kaisha (GK): Comparable to a limited liability company (LLC).
- Branch Office: For foreign companies expanding into Japan.
Each has different requirements, costs, and flexibility. KK is often preferred for larger businesses, while GK is simpler and less expensive for small businesses.
2. Develop a Business Plan
A solid business plan is essential, especially for visa applications and financing. Your plan should cover:
3. Secure an Office Address
You must have a physical address in Japan to register your company. This can be a rented office, co-working space, or virtual office, depending on the business type and visa requirements.
4. Prepare the Articles of Incorporation
Draft the Articles of Incorporation (teikan), which define the company’s name, objectives, capital, directors, and shareholders. For KK companies, these must be notarized by a notary public. For GK, notarization is not required.
Required documents may include:
- Articles of Incorporation
- Certificate of seal impression or signature certificate (for foreigners)
- Personal identification documents
- Proof of capital deposit
5. Deposit Capital
Open a bank account in Japan and deposit the initial capital. There is no strict minimum (as little as 1 yen), but for visa purposes, at least 5 million yen is recommended for foreign entrepreneurs seeking a Business Manager Visa. Or, you have the alternative that you hire at least two full-time employees who reside in Japan.
6. Register the Company
Submit all required documents to the Legal Affairs Bureau. This includes:
- Application for registration
- Articles of Incorporation
- Proof of capital deposit
- Seal registration form
Registration fees:
The process typically takes 3–4 weeks or more. The speed of company formation procedures depend on the preparation of documents.
7. Obtain Company Seals
Register a company seal (inkan/hanko), which is used for official documents and contracts. This is a legal requirement in Japan. A judicial scrivener can assist you with the registration of your company’s official seal.
8. Open a Corporate Bank Account
After registration, open a permanent corporate bank account for business transactions. You’ll need your company registration certificate and seal certificate for this step.
9. Notify Tax and Social Insurance Authorities
Register your business with the local tax office and, if hiring employees, with the social insurance office. Additional licenses may be required depending on your business activities (e.g., food, finance, staffing).
10. Obtain a Business Manager Visa (For Foreigners)
If you plan to manage your business in Japan as a foreigner, you’ll need a Business Manager Visa. Requirements include:
- A viable business plan
- Office space in Japan
- At least 5 million yen in capital
- Company registration documents
If you already have permanent residency or a spouse visa, this step may not be necessary.
Key Points & Tips
- Start with a clear business plan and research your market.
- Prepare all documents carefully and consult with a judicial scrivener or administrative scrivener if needed.
- Be aware of additional licenses for regulated industries.
- Consider professional help for smoother navigation of legal and administrative processes.
Quick Reference Table
Starting a business in Japan is a structured process, but with the right preparation, it can be straightforward and rewarding.