Process flow of establishing a LLC
This type of company is for running the business together with a low number of investors with mutual trust. Compared to a corporation, an LLC can more freely make decisions about how to distribute profits and other decision making methods. Here we explain the procedure for establishing an LLC in Japan of a foreign company. In Japanese LLC is called 合同会社 goudou-gaisha.
※For another option for individual investors/owners, see our Procedure to Establish a Corporation page.
Foreigner & personal seal registration
It is convenient for the person who will become the company’s representative 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. At least one of the company’s directors needs to have an address in Japan. Different from a corporation, certification of the Articles of Incorporation is not required.
Make & certify a sworn affidavit
A Sword Affidavit is made and certified related to the details of the foreign company and it’s representative’s signature, based on the foreign parent company’s Certificate of Registered Matters.
Deposit equity funds
Deposit equity funds into an employee’s bank account.
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.
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.
Items Client Provides
- Subsidiary registration certificate & articles of incorporation
- Documents required for foreigner registration
Items We Prepare
- Articles of Incorporation of Japanese Company
- Sworn Affidavit ※
- Representative Selection Document
- Declaration of Capital Deposit
- Registration Application
A piece of writing that a public notary of the person’s home country or consulate in Japan attests to that describes what the company representative swears to do listed in the company’s formation documents.
Back to consulting fees
|200,000 yen (tax excluded)||about 80,000 yen* + equity funds|
|LLC Establishment for Small Business*
1. An investor is an individual and only you.
2. An investor who has already appropriate Japanese Visa and bank account in Japan.
Back to consulting fees
|120,000 yen (tax excluded)||about 80,000 yen* + equity funds|
*＜Details of Actual Expenses＞
Registration & License Tax: Equity ×0.7% (minimum of 60,000 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
- In what situations would it be better to establish as an LLC?
- 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?