Company Formation Japan
Updated on Tuesday 08th May 2018
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Considered third in rank when it comes to economy, Japan is considered one of the most developed countries in the world. When talking about opening a company, investors should know that depending on the country they are from, Japan has visa exemptions. If your country is on the list, a passport is all you need in order to proceed with your business plan.
Types of business entities in Japan
You can choose from several business entities: limited liability companies, joint stock corporations, offshore companies, representative offices or you can opt for creating a branch office for a parent-company overseas. They all have their advantages, but the one that most foreign investors prefer is the limited liability company type and it is due to the fact that it is more easy to establish. In order to set up a company like this in Japan, you need to meet some requirements:
- at least one shareholder;
- a share capital of minimum 1$, with the specification that it has to increase to 39,000$ in the course of five years from the day that the business has been incorporated;
- no less than one director (one of the directors has to be a Japanese resident);
- providing an annual financial situation.
An important advantage of the limited liability company type is that you can have employees of any nationality.
How to register a company in Japan
The registration process of a company in Japan will take a few weeks and these are some of the steps that you need to complete.
1. You begin by choosing a name for your company and after that you can also open the bank account with the company's name.
2. Then a copy of the seal registration certificate has to be submitted to the Ministry of Justice.
3. You also have to register with the Legal Affairs Bureau.
4. A notification of the company's registration has to be sent to the tax office and also let them know that you are starting your business.
5. The Labour Standards Supervisory Office also has to be notified concerning your employment regulations and labour insurance documents.
6. The last step is to apply for health, employment and accident compensation insurance.
Although it has been seen as an expensive country, Japan's offices have become more and more supportive with foreign entrepreneurs who want to form a company in Japan. For more information, do not hesitate to contact our specialists.