The investors who may wish to start a limited liability company in Japan should know that they will not be required to have a minimum share capital. However, the members can only make their contributions using cash or non-cash assets. Paying through services is not encouraged.

Reasons to Register Company in Japan

Currently, many investors around the world are willing to register their companies in Japan due to various benefits such as:

  • To register a limited liability company in Japan, one will not be required to have a minimum share capital
  • This country is known due to its pro-business atmosphere which attracts foreign investment.
  • The government encourages research and development, therefore has so many people who are dedicated to these activities.
  • The country is highly competitive in doing business.

There are various types of companies which can be incorporated and the investors can benefit a lot.

Kinds of companies which can be incorporated in Japan
Partnerships and corporations are the main kinds of companies which are usually incorporated in Japan. In this case, you can either start a limited liability company or joint-stock company. If there are investors who share similar business goals, they can register for a general partnership.

Limited liability partnership can be the best business especially for investors who wish to have limited liability protection but they wish to operate as a partnership.

It’s only a few economic sectors which have formal restrictions for the investors. Generally, the country has minimized the restriction so that it can encourage foreign investment. All business people who wish to invest in Japan must offer special notifications especially when they wish to invest in sensitive sectors such as nuclear energy, maritime transport, aviation, aerospace, telecommunication and broadcasting.

The government can also restrict investment in some sectors in they it believes that some activities can threaten the security of the country. However, the foreign trade law and Foreign exchange department usually offer information concerning foreign investment in special sectors of the economy.

To register a company in Japan, one will be required to undertake some formalities. Some of the steps highlighted below relate to incorporating a limited liability company. This is because it’s one of the famous kinds of business that you can get in Japan.

A godo gaisha is the kind of business in Japan which is similar to the limited liability company. In this case, the members will only be liable according to the contributions that they make towards the capital of the company. There is a New companies Act which regulates this kind of business and other kinds of companies which can be incorporated in Japan.

Requirements to Register Company in Japan

  • The members will be required to choose a company manager who can be a corporate or individual. The manager will represent the interests of the company and its members.
  • You will be required to make the seal of the company and the representative will be required to register for his/her seal.
  • The articles of Association must be registered through a standard application at the Legal Affairs Bureau of Japan
  • The application will be approved, in case you have presented all the required documents. After that, you will be required to present a certificate proving you registered your seal to the Legal Affairs Bureau.
  • You will be required to submit notifications indicating that you have been approved for tax returns, payroll and taxation to the District tax office. You must do all these within one month.
  • You can go ahead and start hiring your employees. However, you will be required to register your company at Labor Standards Inspections Office for the public welfare pension, health and labour insurance.
  • With the first 10 days, after hiring your employees you can submit your company registration application to the security office in charge of public employment.

You must know it’s very easy for you to register a company in Japan since the entire process can take about 10 days if you have all the documents, licenses and permits.
We do have professional agents who can assist all business people in the entire process of writing down vital documents which are required in registering a company in Japan. Some of these documents may include Articles of Association.

Do you wish to start a company in another country? Our experts are always ready to assist you in registering an offshore company in UAE or in the Marshall Islands. We can also assist you in establishing a company in a European country like Estonia. Our international network of lawyers and consultants can assist you to register your company in various countries around the world.

Benefits of a Company in Japan

A limited liability company is the kind of business which targets small and medium businesses.

The following criteria must be met when you are registering for a limited liability company in Japan.

  • All members of the company must favour a certain decision so that it can be applied.
  • The members will be liable according to the amount of contributions which they make towards the capital of the company.
  • All members can represent the company until a manager is appointed. They can make their contributions using cash and non-cash assets.
  • In case all members agree, they can reorganize a godo gaisha.

All registered companies in Japan are expected to observe the requirements regarding auditing, filing and accounting. The accounting standards laid out by the Japanese do apply to all companies which are registered in Japan. Therefore, all company owners are expected to prepare and submit annually the financial statements of their companies.

Also, companies which have a capital of more than 500 million JPY are expected to hire an external auditor. In filing taxes, the tax year can be the same as the calendar year or another period, depending on how the company will decide. The branches must have the same calendar year as the head office.

Both local and foreign entrepreneurs who wish to register their companies in Japan should have the following:

  • Have a legal address which can be obtained at the virtual office in Japan.
  • Have a resident director who will handle the entire process of opening a bank account in Japan.
  • The director will also oversee the depositing of share capital by following the company law.
  • You must also draft the Articles of Association for your company and notarize them so that they can be filed at the Trade register.
  • You must also have  to provide any other documents which may be required according to the kind of business you may be doing.

Our registration consultants can represent all foreign investors in getting all the required documents from the local authorities in Japan.

Our Services and Timeline

  • Writing down all the documents which are needed for legal approval of your company. The documents can include the signature specimen, copies of passports and special forms which are offered at the office which is in charge of registering companies in Japan.
  • You must have a registered office for your company in Japan. The office, in this case, will be the address which you will choose in Japan where your headquarters will be placed. We can also assist with arranging one.
  • Writing down the Articles of Association. In case the investor is not present in Japan, the Articles of Association can be signed with the presence of an Attorney General.
  • Opening a bank account for your company.
  • And all other steps required to register a company in Japan.

The period taken in registering a company in Japan

Many foreign investors who wish to register their companies in Japan, usually wonder how much money and time can take to complete the entire process.

  • To search for the company name and reserving it, you can do it for free and within a few hours.
  • To register the company seal you will be required to pay about 20,000 JPY and the process can take 3 working days.
  • It can take about 3 days to register your company at the Trade Register. The amount of money you will pay in this case will depend on the share capital of your company.
  • To register your business with the tax authorities you will not pay anything and the process can take you one day.
  • It’s also free to register for pension and social security services. You can do this within one day.

Through the above process, you will not have any worries in starting your business in Japan, in general it takes about 2 weeks to make all required preparations.
If you have any queries you can get in touch with us any time that you wish.

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