SET UP A COMPANY IN JAPAN
Establishing a Business in Japan:
A Comprehensive Guide
Step 1: Determine Your Business Structure Choosing the right legal entity is crucial. Common structures include:
- Kabushiki Kaisha (KK): A joint-stock company similar to a corporation, ideal for scaling.
- Godo Kaisha (GK): A limited liability company (LLC), offering streamlined setup.
Step 2: Selecting a Unique Company Name Your business name must comply with Japan’s corporate regulations and must not duplicate existing registered entities in same place. Note also the company’s trade mark rights. Major names may be registered as trademarks. Japanese law also has detailed regulations on the characters that can be used, such as romaji, katakana and symbols.
Step 3: Appointing Directors and Shareholders Foreign nationals can serve as both shareholders and directors. Required documents include ID verification and original signature / seal certificate.
If applying for a Business Manager Visa, specific immigration regulations apply. Please note that, as a general rule, a corporate bank account in Japan cannot be opened unless at least one representative of the company resides in Japan.
In other words, the representative must be a Japanese national, a permanent resident, or a foreign national who holds a valid residence status that permits business management activities in Japan.
Step 4: Register a Business Address. A legitimate office space is mandatory for Business Manager Visa applicants. Virtual offices are generally not accepted. Read more on office requirements.
Regardless of visa status, some banks in Japan may refuse to open a corporate bank account if the company does not have a physical office address. This is due to internal compliance policies requiring verification of a legitimate business presence, and a virtual office alone may not be considered sufficient in many cases.
Step 5: Acquire a Company Seal (Inkan). A registered company seal is required for official documentation and banking.
Step 6: Drafting the Articles of Incorporation The Articles define your company’s operations, structure, and capital investment. A notarization process（公証人による定款認証） is required for completion.
Step 7: Company Registration Submit all required documents to the Legal Affairs Bureau（法務局）. Professional support from an experienced legal advisor is recommended.
Step 8: Registering for Tax and Insurance Enrollment for corporate tax, consumption tax, and social insurance is mandatory.
Step 9: Securing Business Licenses Some industries require specific permits before commencing operations.
Step 10: Opening a Corporate Bank Account A corporate account is essential for financial operations. Having a director with a Japanese residential registration certificate (Juminhyo) can ease this process.
Need Expert Assistance? Japan’s legal framework is dynamic. Professional consultation ensures full compliance with regulatory changes.
Meet Our Immigration Consultant
Masakazu Murai
Immigration Consultant, Financial Advisor
18+ years of investment banking experience at Mitsubishi UFJ Morgan Stanley, advising over 500 entrepreneurs.
Credentials:
Gyoseishoshi Immigration Lawyer
CMA (Japanese Financial Analyst License)
CFP (Certified Financial Planner)
MBA in Entrepreneurship (Hosei Business School)