Set Up Company In Japan

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  REQUIREMENTS AND 
  PROCEDURES FOR FOREIGN 
  INVESTORS TO SET UP A 
  COMPANY IN JAPAN

 

  • Procedures and capital for foreigners 
    to establish the company 
  • Apply for a business manager visa 
  • Southeast Asia company Registred

 

With the development of globalization, more and more foreign-funded enterprises plan to set up companies in Japan due to various business or investment needs. The Japanese government welcomes the entry of foreign companies. The law on foreign investment was revised in 2015 to relax the requirements for foreigners to establish companies.

 

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Procedures and capital for foreigners to establish the company

In Japan, when a foreigner becomes a sole proprietor, he must meet the same conditions as when establishing a company and obtain a management visa.

  • The required capital amount is 5 million yen or more.
  • In addition to the proprietor, there are at least two Japanese employees. 

 When foreigners set up a company in Japan, the general process is as follows:

 

Procedures and capital to establish the company

 

  1. Information needed to establish a company
    The basic matters of establishing a company are as follows:
    ・Type of company (Ex: company or limited liability company)
    ・Company name (trade name)
    ・Operating items
    ・Investors, directors, terms of office, etc.
    ・Head Office
    When establishing a company in Japan, the company is divided into four types according to the "Company Law": "Stock company", "limited liability company", "partnership company" and "joint venture company". Therefore, it is necessary to determine which type of company to set up. In addition to Japanese, you can also use Roman characters and Arabic numerals as the company name. It is necessary to determine in advance the business purpose, investors, directors, tenure, etc. Although the headquarters can be located outside the office. If the same address has the same name, it cannot be registered.

  2. Prepare articles of incorporation and certified true copy
    After the company's articles of association are established, the company's articles of incorporation, seal, and signature certificate must be authenticated by the notary.
  3. Funds remittance
    Once the articles of association are approved, the funds must be transferred to the founder’s bank account. The registered capital needs to be transferred through the bank account established by the founder. If the founder is an individual, it is transferred to a personal bank account, or if it is a company, it is transferred to the account in the name of the company. The problem that often arises here is that it is difficult for overseas residents and short-term residents to open personal accounts. However, due to legal changes in 2017, even overseas residents can use capital. You can pay through the following three methods.
    ・Upon establishment, transfer to the Japanese account of the director/ representative director.
    ・If the founder or director is not a Japanese resident, it can also be transferred to a third-party personal bank account.
    ・Accounts in overseas bank branches in Japan or overseas Japanese bank branches.

  4. Apply for company registration after making the necessary registration documents.

 

 

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Apply for a Business Manager Visa

When foreigners set up a company in Japan and join the management, residency status becomes an important issue. Foreigners can carry out business and management activities by applying for a Business Manager Visa. To obtain a Business Manager Visa, the following conditions shall be met.

  • Must have a business office in Japan (cannot be used with home).
  • Employ 2 or more people who are permanently resident in Japan or who pay 5 million yen or more annually in Japan.
  • The capital is more than 5 million yen.
  • It can prove the stability and continuity of the business. Basically, it is difficult to obtain a Business Manager Visa if these conditions are not met.

 

Note:

  • When establishing a company in Japan and participating in management, foreigners shall have the status of residence status.
  • You can’t start a business on a work visa or student visa. Therefore, it is necessary to obtain an operation/manager Visa.
  • Without a certain scale of a business plan, it is difficult to obtain a Business Manager Visa.

 

 

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