Japan, known as “The Land of the Rising Sun”, is a country blend of unique traditional culture and cutting-edge innovation. This makes it an alluring option for foreigners looking to extend their business operations. If you’re a foreigner interested in starting a business in Japan, take heed of the following steps to successfully register your company.
1. Develop a Concrete Business Plan
Firstly, clear business goals and a comprehensive business model are paramount. It’s essential to have a deep understanding of the Japanese market and its diverse consumers. Extensive research on both the local culture and business practices can be a valuable tool for foreign entrepreneurs.
2. Visa Requirements
The business should align with Japanese regulations and laws, starting with visa requirements. Certain types of visas, such as the Investor or Business Manager Visa, are required for foreign nationals aiming to start or manage a business in Japan.
3. Register Your Company
You have several options to opt from when it comes to establishing a company in Japan. You can register as a Kabushiki Kaisha (KK), commonly known as a Joint-stock Company, or as a Godo Kaisha (GK), akin to a Limited Liability Company (LLC). Both require a minimum of one investor and one representative in Japan.
Registration Procedure:
– Submit an application along with required documents at a legal affairs bureau.
– An online option is also available on the Japanese e-Government portal.
– Post-application, a waiting period of 2 weeks for approval is standard.
4. Open a Bank Account
To open a corporate bank account in Japan, you need your personal ID, proof of residence in Japan, the company’s seal (inkan), and the company’s registration certificate. Note that some banks might have additional requirements or stipulations for non-residents.
5. Hiring Personnel
Labour laws in Japan are employee-friendly. Thus, when hiring, you must be aware of the employment laws to avoid any legal issues in the future. Hiring local personnel can be beneficial as it can help you better understand the market, supply chain, business culture and practices in Japan.
6. Tax Obligations
Once registered, businesses become liable to taxation. Japan has a well-structured taxation system. Get familiarized with Corporate Tax, Consumption Tax, Inhabitant Tax, etc., to ensure you are tax compliant.
To summarize, launching a business in Japan as a foreigner, although seemingly daunting, is a well-guided process. Japan’s strong domestic market, burgeoning international influence, and dedication to innovation makes it a ideal hub for entrepreneurs. Understanding the steps involved in company registration is key to starting your entrepreneurial journey in Japan.
Here are some suggested related links for Guidelines for Foreign Entrepreneurs: Registering a Company in Japan:
Japan External Trade Organization (JETRO)
Ministry of Economy, Trade and Industry (METI)
Ministry of Justice (MOJ)
The Japan Times
Startup Japan