An easy guide to starting a business in Japan

Setting up a business in Japan might seem overly complicated, especially if it’s your first time. However, Japan has streamlined and structured the process significantly over the past decade and with some guidance, you can establish a business in the Land of the Rising Sun without breaking a sweat. Here is your introductory guide to setting up a business in Japan.

Step 1: Get a Visa to Start Setting Up a Business in Japan

Foreign nationals need an appropriate visa to start a business in Japan. The options include a Business Manager Visa or a Start-up Visa.

Obtaining the Investor / Business Manager Visa

Investor visas can be granted for 1, 3, or 5 years, depending on your business’s profitability and performance. The process involves establishing your company, applying for an investor visa Certificate of Eligibility (COE), and exchanging it for investor status or residence at a Japanese Embassy or Consulate.

Obtaining the Start-up Visa

This six-month visa is available in select cities like Tokyo, Hiroshima, and Fukuoka. You need to submit a business plan in Japanese to get a recommendation letter from the local government. The visa can be extended for another six months and allows the same benefits as the 4-Month Business Manager Visa.

Step 2: Secure an Office or Shared Space

Short-Term Office Rentals

Serviced offices offer flexible lease terms, low start-up costs, and access to necessary infrastructure. This is a popular option due to its convenience and flexibility.

Long-Term Office Rentals

Long-term rentals allow you to set up an office that reflects your brand image. You can find spaces through specialized websites or real estate agents.

Step 3: Get Your Articles of Incorporation Ready

Articles of Incorporation are essential for company management and vary by business structure.

For Foreign Individuals

You’ll need a seal certificate, company seal, personal bank account details, and signed or sealed incorporation documents.

For Foreign Companies

You’ll need the parent company’s registry certificate, notarized signature attestation, seal certificates, bank account details, and signed or sealed incorporation documents.

Step 4: Costs to Notarize the Articles of Incorporation

For GK Companies, it’s necessary to notarize revenue stamps, which will cost 40,000 yen. GK companis (合同会社 – gōdō gaisha) are the equivalent of limited liability companies in the US.

For KK Companies (株式会社 – Kabushiki gaisha), it will be necessary to have all Articles of Incorporation notarized on top of the revenue stamps, for a total of roughly 90,000 yen. This type of companies is the equivalent of share companies, stock companies or corporations.

Step 5: Deposit the Initial Capital

Use your personal bank account to deposit the initial capital. For subsidiary companies, use the Representative Director’s personal bank account. The amount also varies depending on the nature of the company.

Step 6: Prepare Additional Documents

These include a letter of agreement from the director and proof of the company’s seal registration completion.

Step 7: File the Application for Business Registration

File at the Registry Office. Fees are 150,000 yen for KK businesses and 60,000 yen for GK businesses.

Step 8: Obtain the Registry Certificate, Seal Certificate, and Corporate Number

After registration, acquire these documents to sign contracts and open your corporate bank account.

Opening a Bank Account

Choose from foreigner-friendly banks like Sumitomo Mitsui Banking Corporation, Shinsei Bank, Seven Bank, or Japan Post Bank. Required documents include proof of residency rights, residency, contact information, and a Japanese residence card.

Trademark Registration Process

Register your trademark at the Japan Patent Office. Required documents include a registration request in Japanese, trademark information, a representation of the trademark, and a complete list of associated services/products. Fees include an application fee (¥12,000 for trademarking one class of goods and/or services provided, ¥8,600 for additional classes), registration fee (¥28,200), and renewal fee (¥38,800 every 10 years).

Know Your Hanko and Inkan Seals

Hanko seals, personal stamps used as identifiers, are essential. Types include:

Personal Hankos

• Mitome-in: For basic contracts.
• Ginko-in: For banking.
• Jitsu-in: Official seal for company registration.

Business Hankos

• Kaku-in: For signing documents.
• Ginko-in: For banking, registered with the bank.
• Kaisha Jitsu-in: Most important business Hanko, registered with the Legal Affairs Bureau.

Prices vary depending on material, diameter, design, and registration, ranging from ¥100 to ¥10,000.

Conclusion

Japan, with its strong economy and supportive startup initiatives, is an excellent place to do business. This guide provides an overview of the steps involved, from obtaining the necessary visas to registering your company and opening a bank account. By following these steps, you can have an initial idea of how tp navigate the process of setting up a business in Japan, but we strongly advise you to always seek the support of recognized professionals when starting your company in Japan for ease of mind and ensuring full compliance with all necessary regulations.