Starting a business in Japan might seem like a daunting task, especially if you are unfamiliar with the local laws and business customs. However, with a little knowledge and guidance, the process can be made straightforward and manageable. This blog post aims to provide a detailed guide on how to register your business in Japan, including the necessary steps and requirements.
First and foremost, you need to decide on the type of business you want to establish. There are several types of business entities in Japan that you can choose from, including the Goudou Kaisha (GK), Kabushiki Kaisha (KK), and the Gomei Kaisha (GK). The GK is equivalent to a Limited Liability Company, while a KK is similar to a Corporation in the U.S, and a Gomei Kaisha is a general partnership. The type of business entity you choose will affect the registration process.
Once you’ve decided on the type of business entity, the next step is to prepare a company seal, known as an “inkan” or “hanko.” This seal is used in Japan in place of signatures on official documents. It is mandatory for company registration.
Next, you need to deposit the initial capital in a bank account under the company’s name. The minimum capital requirement varies depending on the type of business entity. For a GK, there’s no minimum capital requirement, while a KK requires at least one yen.
The fourth step involves preparing your Articles of Incorporation. These documents describe the purpose of your company, its location, the amount of capital, the distribution of shares (for a KK), and the names of the directors and auditors. The Articles of Incorporation need to be notarized by a Japanese notary public.
The fifth step is to submit the registration application to the Legal Affairs Bureau. This application includes the Articles of Incorporation, a registration form, the company seal, a certificate of seal impression, and proof of capital payment. The Bureau will then review your application and, if approved, issue a company registration certificate and a company seal certificate.
The sixth and final step is to register for taxes and social insurance. This is done at the local tax office and the Japan Pension Service office. The documents required for tax registration include the company registration certificate, a copy of the lease for the office, and a list of employees.
While the process of registering a business in Japan may seem complex, it is relatively straightforward once you understand the steps involved. If you need professional help, you can contact us from the form below.
