How to register a company in Japan
Introduction
Aside from having the world’s second-largest foreign-exchange reserves, Japan is synonymous with quality and innovation which goes in line with Japan’s companies’ commitment and loyalty to business partners. Well renowned for manufacturing different precision products has played a vital role in Japan’s economic growth.
Having one of the strongest economies in the world with the third largest Gross Domestic Product (GDP), Japan is considered a good place to start up a business.
Are you an entrepreneur looking to start a company in Japan. Here are simple steps for how to register a company in Japan.
How to register a company in Japan
1. Setting up a company trade name
Before deciding on the company trade name, it is advisable to check to see if there are any identical names in your company’s address. Investigations are usually carried out by administrative bodies to ensure that no two companies on the same address have the same company names.
Company names can be written in the alphabet, numbers, Kanji, hiragana, and so on. Always remember when choosing a company name, make it short. It should be short and easy to remember. This is very important as it makes it easy for referrals and advertisements.
The company name should be meaningful and should be in line what your business. Not only that, it should also be catchy to both the eyes and ears when seen and heard by your customers.
2. Preparation of the Articles of Incorporation.
Articles of incorporation are important documents that state the manner in which the company will be managed.
Below are the requirements needed in the Articles of Incorporation.
–Company purpose and activities. This should state the kind of business you are operating on, it’s benefits to the society, the number of staffs to be hired, the company’s rules and regulations and so on. You are allowed to list as many as possible even some of the activities that won’t be carried out immediately.
-Name of the Incorporating company. As you already know by now, your company name should not correspond with another company at the same address.
-Company address. State the address of the company writing down the exact location details such as street number or building name. This will be shown on the registration certificate. It can also be one of the investor’s or director’s home addresses.
-Administration. Stating how you elect or choose shareholders and directors through voting rights or shares of more than 25 % should be stated. At least one director should be appointed by the company. Also, a shareholder can also be a director at the same time as long as he/she is able to carry out both tasks effectively.
-Corporate capital. This is the first amount to be invested into the company at the time of establishment. It is required to have at least 5 million yen capital that would be used to pay any initial expenses. This capital can also be used to obtain an Investor/Business Manager visa.
-Name and address of the Incorporator. For the Articles of Incorporation to be complete, a certification by a notary is required. The AOI is required to be affixed with a registered seal and also to have a Certificate of Registration seal attached.
If the Incorporator is not a resident, a seal or signature verified by their residing country should also be attached. Also, the signature of each Investor and Director is required on the AoI as well as other documents.
The seal certificate is issued within 3 months for each Investor and Director. If an Investor also becomes a Director, 2 certified copies are required. It can be obtained from a local city hall if you register as a resident in Japan.
-A signed slip of deposit. One of the Investor’s personal bank accounts can be for the deposit of capital stock. Also, a new account can be opened. The signed slip should be attached to the address of the Incorporator.
3. Payment of capital stock.
This includes the following :
–Documents proving payment to the set-up handling agency (The agency is created by the directors at the time of establishment)
-A copy of the account’s Bankbook showing the transaction details of the account and other documents prepared by the handling agency. The following should be included in the document:
-Name of the financial institution and branch name.
-Record of investment paid.
-Name of the account holder.
4. Company Registration
With the completed registration application documents, the next step is to apply to the Legal Affairs Bureau. Once the establishment of the company is approved, you can acquire the certificate of registration and and register the chief executive official seal of the company as well.
The company official seal is required for signing business or employment contract in the company name and can also be used to open a corporate bank account.
5. Company set up after approved registration.
Here are some measures you need to take after your company has been successfully registered.
-Established a bank account
-Registration of the approved company in tax office
-Registration in the local governing body
-Registration in Labour Standards Inspection Office.
-Registration in Japanese Pension organization.
Conclusion
Japan is best knowm for manufacturing different precision products, so you might have to put into consideration the type of company you want to set up. Japan is considered an eco-friendly nation, so a foreigner can easily set up a company by following these easy steps carefully.
FAQs
-Is Japan friendly to foreign business?
Japan is considered business-friendly when it comes to all formalities.
-Does a foreigner need a local address when establishing a company in Japan?
It is possible to apply for a company registration in Japan even if director and investor resides abroad.
-How much does it cost to Incoporate a company in Japan?
Incoporation cost in the first year amounts to $5,950. The average total fee including Japan engagement amounts up to $18,210. This includes company incorporation, resident director, corporate bank account and virtual office address.
-How long does it take to incorporate a company in Japan?
The entire Incoporation process takes approximately 2 to 4 weeks depending on the type of business structure you choose. It also depends on if you are a foreign resident or not.
-What is the easiest business to start in Japan?
Most of the popular yet simple businesses you can consider starting up includes
-Agriculture
-Restaurant
-Business consultation
-Online retailing
-Real estate and so on.
