Starting a Company in Japan
Here’s a clear and simple guide to help you understand your options as a foreigner.
One of the cornerstones of starting a company in Japan is ensuring that banks recognize your venture’s legitimacy. In Japan, this often involves presenting a printout of a company’s homepage during the bank account opening process.
This isn’t just paperwork—it’s an affirmation of genuine business operations. Hence, a basic corporate website, coupled with traditional requirements such as ‘hanko’ (personal seals) and a touch of patience, is not just recommended but essential. This melding of the digital with the traditional exemplifies the careful balance needed to succeed in Japan’s unique business landscape.
Company Types and Establishment Steps
Kabushiki Kaisha (KK) Joint-stock Corporation (株式会社)
A popular choice among foreigners, the Kabushiki Kaisha (KK) resembles the structure of a Western-style corporation. The term kabushiki gaisha in Japan refers to any joint-stock company regardless of country of origin or incorporation; however, outside Japan the term refers specifically to joint-stock companies incorporated in Japan.
Establishment Steps:
Choose a unique company name.
Prepare Articles of Incorporation.
Deposit the required capital (no minimum requirement).
Register with the Legal Affairs Bureau.
Open a corporate bank account in Japan.
Godo Kaisha (GK) Limited Liability Company (合同会社)
The Godo Kaisha (GK) is a type of business organization in the Companies Act of Japan modeled after the American limited liability company (LLC), hence its nickname as the “Japanese LLC”
A GK is formed by articles of incorporation (定款, teikan) signed between its investors, called members (社員, shain). Each member may provide a capital contribution in the form of money or property. Credit and promises to perform services are not valid considerations for an ownership interest in a GK.
Establishment Steps:
Select a company name.
Draft the Articles of Incorporation.
Deposit starting capital (no fixed minimum).
File for registration with the Legal Affairs Bureau.
Secure a corporate bank account.
Representative Office
For those looking to explore the Japanese market without fully committing, a Representative Office is an ideal choice. It’s not a legal entity, so it can’t engage in sales, but it’s perfect for market research.
Establishment Steps:
Decide on the location and name.
Notify the Bank of Japan.
Begin market research activities.
Branch Office
If you already own a company outside Japan, establishing a Branch Office might be the route for you. It can conduct business activities in Japan, but its liabilities extend to the parent company.
Establishment Steps:
Choose a location and office name.
Register with the Legal Affairs Bureau.
Notify tax authorities.
NPO – Non-profit Organization
If your objective is social contribution, starting a Non-profit Organization (NPO) might resonate with your goals.
Establishment Steps:
Draft the organization’s purpose and bylaws.
Gather ten or more members.
Apply for NPO status with the Cabinet Office.
Once approved, register with the Legal Affairs Bureau
Conclusion
Starting a company in Japan as a foreigner can seem complex, but understanding the types of companies and their requirements is the first step. No matter which business structure you choose, having a well-designed website can make a world of difference in reaching your target audience in the Land of the Rising Sun. At WebGuru, we specialize in creating digital experiences tailored for the Japanese market.
Disclaimer: This guide is based on publicly available resources and is intended for general informational purposes only. It is not legal advice. Consult with legal professionals in Japan before making any business decisions. WebGuru supports company formations with our network of trusted legal and financial partners.
