Establishing a company in Japan involves several steps and considerations, particularly for foreign nationals. Here’s a structured guide to help you through the process:
Determining the Company Type
Choose the type of company: Common options include Limited Company (Kabushiki Kaisha, KK), Limited Liability Company (Godō Kaisha, GK), General Partnership, and Limited Partnership.
Visa and Residence Status
Obtain a suitable visa: Foreign nationals need an appropriate status of residence such as a Business Manager Visa. There are options like the four-month “Business Manager” Visa or a special Startup Visa available in certain cities.
Business Manager Visa Requirements:
The business offices are secured.
The capital or total investment is 5 million yen or more, or the business employs at least two full-time employees.
The business has stability and continuity, and the manager is deemed to have managerial ability.
Basic Company Setup Steps
Prepare the necessary documents:
Articles of Incorporation: Draft and notarize the company’s Articles of Incorporation.
Proof of Investment: Deposit the initial capital into a Japanese bank account and obtain a bank certificate or scan of the bank book.
Personal Identification: Foreign investors must provide a signature certificate or a sworn declaration if they do not have a Japanese seal certificate.
Register the company:
Filing with the Legal Affairs Bureau: Submit the required documents, including the Articles of Incorporation and proof of investment, to the Legal Affairs Bureau. The registration process usually takes about two weeks.
Open a bank account:
This step can be challenging due to language barriers and banking regulations but is necessary for managing business finances.
Additional Considerations
Translation of Documents: Since most official documents must be submitted in Japanese, foreign entrepreneurs will need to provide Japanese translations of all necessary documents.
Legal and Administrative Advice: Consulting with local experts such as administrative scriveners can help navigate the complex requirements and improve the chances of successfully establishing the company and obtaining the necessary permits.
Summary
Establishing a company in Japan as a foreigner involves selecting the appropriate company type, obtaining the necessary visa, drafting and submitting various legal documents, and navigating language and administrative challenges. Consulting local experts and carefully preparing all required documentation can facilitate a smoother setup process.
By following these steps, foreign entrepreneurs can successfully start and operate a business in Japan.