Process flow for establishing KK
A KK is the largest type of company in Japan and tends to be used for medium and big companies. It is a form used by such companies as Toyota and Sony. Here we explain the procedures to establish a foreign subsidiary (KK) in Japan. In Japanese KK is called 株式会社 kabushiki-gaisha.
※For details on how to establish a non-subsidairy company, click here.
Personal seal registration
It is convenient for the person who will become the company’s representative to do personal seal registration* ahead of time.
*This is allowed only for individuals who reside in Japan
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, nature/items of business, business location, company’s representative, structure of board of directors, amount of equity, etc.
Make & certify a sworn affidavit
A Sworn Affidavit is made and certified related to the details of the foreign company and its representative’s signature, based on the foreign parent company’s Certificate of Registered Matters.
Articles of Incorporation
Get the company’s Articles of Incorporation certified at a local notary office.
What are the Articles of Incorporation?
Deposit equity funds
Deposit equity funds into an investor’s Japanese bank account.
In case of not having any Japanese bank accounts, you can temporarily deposit the equity funds into our law firm’s bank account for the purpose of establishment registration. See our fees of Trustee service of capital amount for company registration
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 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’s representative is registered with the Bureau.
Receive Certificate of Registered Matters & Certificate of Seal Registration
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
- Parent company’s registration certificate & articles of incorporation
- Passport and home address of parent company’s representative
- Passport and home address of Japanese company’s representative and other directors
Items We Prepare
- Articles of Incorporation of Japanese Company
- Sworn Affidavit ※
- Minutes of meeting for election of board members.
- Declaration of Capital Deposit
- Registration Application
- Any other documents deemed necessary for each case
※Sworn Affidavit
A piece of writing that a notary public who belongs to the home country of the parent company/Representative of the Japanese company attests to that describes what the company representative swears to do listed in the company’s formation documents.
Fees
| Item | Fee (JPY) | Actual Expenses (JPY) |
|---|---|---|
| KK Establishment | 300,000 (tax excluded) | about 220,000 * + equity funds |
*＜Details of Actual Expenses＞
Registration & License Tax: Equity ×0.7% (minimum of 150,000 JPY)
Articles of Incorporation fee: 50,300 JPY
Seal creation cost: about 10,000 JPY
Certificate of Registered Matters & Certificate of Seal Registration: 1,900 JPY
Postage
Equity funds
Refer to Fees
FAQ
- Do you always have to establish a Branch 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 the 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?
- In what situations is it required to make reports or notifications under the Foreign Exchange and Foreign Trade Act?
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