Step-by-Step Guide to Establishing an LLC in Japan as a Foreign Entrepreneur

Starting a business in Japan as a foreign national requires a clear understanding of the procedures involved. This guide outlines the essential steps for establishing a Limited Liability Company (LLC) and securing the necessary visas and permits.

Step 1: Define Your Business Structure

When setting up an LLC in Japan, you must determine the company name, registered address, capital investment, and business objectives. If you are not a permanent resident or married to a Japanese national, you will need to apply for a Business Manager Visa. This requires an initial capital investment of at least 5 million yen and a dedicated office space separate from your residence.

Step 2: Draft the Articles of Incorporation

The Articles of Incorporation serve as the company’s constitution, detailing key aspects such as company name, address, business scope, capital investment, and executive structure. If prepared and electronically signed by a certified specialist, the standard 40,000-yen stamp duty fee is waived.

Step 3: Deposit Capital Investment

The capital investment must be deposited into the personal bank account of the company’s founder. Japanese bank accounts or foreign bank branches in Japan can be used. International wire transfers may take time, so plan accordingly.

Step 4: Register the Company with the Legal Affairs Bureau

A judicial scrivener will submit the incorporation documents to the Legal Affairs Bureau. The date of application for registration becomes the official establishment date of your company. The process takes approximately one week, after which you can obtain a company registration certificate needed for business operations, banking, and licensing.

Step 5: Notify Tax and Labor Authorities

After incorporation, you must file tax and payroll-related registrations with the Tax Office and local labor departments. These filings are also crucial for Business Manager Visa applications. If you are unfamiliar with Japan’s tax system, we can introduce a trusted tax professional to assist you.

Step 6: Obtain Necessary Business Licenses

Certain industries, such as travel agencies, second-hand goods trading, and real estate, require prior government approval before operation. Ensuring compliance with these regulations is critical for your business success.

Step 7: Apply for the Business Manager Visa

Once your company is established and compliant with regulatory requirements, you can apply for a Business Manager Visa at the Immigration Bureau. The quality of your business plan is a key factor in approval. Our experienced professionals can help you craft a solid plan to increase your chances of success.

Required Documents for Company Registration

• Company seal
• Original certificate of seal registration (for resident foreign representatives)
• Certified signature document (for non-resident foreign representatives)
• Bank statement showing capital deposit
• Representative’s personal seal

Get Professional Guidance for Your Business in Japan

Setting up a business in Japan involves intricate legal procedures. Our experienced immigration consultants and legal experts at Continental Immigration will guide you through the entire process, ensuring a smooth and compliant business launch.

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About the Author

Masakazu Murai
Former investment banker at Mitsubishi UFJ Morgan Stanley, specializing in corporate finance and M&A advisory. With a deep understanding of immigration law and business consulting, he assists foreign entrepreneurs in establishing and growing businesses in Japan.

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