Procedure for when a foreigner him/herself establishes a company.
A corporation is the largest type of company in Japan. It is a form used by such companies as Toyota and Sony. Here we explain the procedures to establish a corporation where a foreigner is the initial investor.
Foreigner & personal seal registration
It is convenient for the person who will become the company’s representative and investor to do foreigner & personal seal registration ahead of time.
Decide on company outline & make Articles of Incorporation
Basic items about the company are decided such as who the investors will be, the company trade name, purpose of business, business location, structure of board of directors, amount of equity, etc.
Articles of Incorporation
Get the company‘s Articles of Incorporation certified at the local notary office. A certificate of seal registration of the person starting the company is required.
What are Articles of Incorporation?
Deposit equity funds
Deposit equity in the investor’s bank account.
Choose board of directors
At a minimum one person needs to be elected as a representative of the company. Of those elected, at least one needs to have an address in Japan.
Make company seal
Make your company’s official seal, which will later become essential as you do business in Japan. The seal is also needed when you apply to for establishment registration.
Apply to Legal Affairs Bureau for establishment registration
Apply to the Legal Affairs Bureau for establishment registration. The seal of the company representative is registered with the Bureau.
Receive Certificate of Seal Registration & Certificate of Registered Matters
Registration takes up to a week to complete after applying.
Afterwards you can receive your company’s Certificate of Registered Matters & Certificate of Seal Registration.
Open bank accounts
A Certificate of Seal Registration & Certificate of Registered Matters is required to open a bank account in the company’s name.
Send Company Establishment Notice to tax office & city government offices
After the company is established, notifications related to taxes, social insurance, and employment insurance are sent to government agencies. If a notification is not sent to the tax authorities, the company may lose out on preferential tax treatment.
Services
We’ve prepared the ideal package of services for the company type listed above to help you start your business in Japan. In order to make the process go as smoothly as possible, we’ve prepared a limited list of necessary documents we’ll need so that we can prepare all the rest for you. If you have any questions about these please don’t hesitate to ask.
Required Documents
Items Client Provides
Items We Prepare
- Articles of Incorporation
- Minutes of meeting for election of board members.
- Declaration of Capital Deposit
- Registration Application
- Any other documents deemed necessary for each case
Fees
| Fee | Actual Expenses | |
|---|---|---|
| Corporation Establishment Back to consulting fees |
300,000 yen (tax excluded) | about 220,000 yen* + equity funds |
Discounted service packages are available.
*＜Details of Actual Expenses＞
Registration & License Tax: Equity ×0.7% (minimum of 150,000 yen)
Articles of Incorporation fee: 52,000 yen
Seal creation cost: about 10,000 yen
Certificate of Registered Matters & Certificate of Seal Registration: 1,500 yen
Sworn Affidavit certification cost: each country’s embassy is different
Equity funds
FAQ
- Do you always have to establish a branch or chain when doing business in Japan?
- Can a foreigner become a representative of a company run in Japan?
- How much should I put in the company’s equity?
- What are Articles of Incorporation?
- Do you have to deposit and keep the equity money in the bank when establishing a company until the company registration is complete?
- What is foreigner registration?
- In what situations is it required to make reports or notifications under the Foreign Exchange and Foreign Trade Act?
