Japan is an advanced country, and starting a business in Japan thrives at lightning speed. With so many business opportunities, Japan is a great place to do business. However, setting up a business in Japan seems challenging, mainly because of the language barrier. Fortunately, there is an expert guide to streamline and structure the process for those who haven’t done it before. Several sources offer steps regarding how to start a business in Japan. Juggling them to extract crucial pieces of information is time-consuming. Therefore, we bring you the ultimate guide on how to set up a company in Japan.
Why Do Business In Japan?
Japan is the world’s fourth-largest economy after the US, China, and Germany. The Tokyo Stock Exchange (TSK) is the largest stock exchange in Asia, with more than 3890 companies listed and a combined market cap greater than $5.6 trillion in January 2023. These stats are enough reasons to do business in Japan. However, several other reasons make Japan appealing for foreign investments and ventures. Here is why and how to start a business in Japan as a foreigner.
- Japan is an innovative country and a worldwide leader in technology. It is one of the most advanced countries in several technology sectors, including robotics, automotive, and electronics.
- It is home to several world-class universities and research institutions, which creates a friendly environment for innovation.
- There is a highly skilled workforce with a strong emphasis on education and training.
- Japan has a well-developed business environment, good infrastructure, and a stable legal system.
- It offers free trade, making it easy and convenient for foreign businesses.
- Above all, Japan is a safe and supportive country to live in and do business with.
Let’s learn how to start a business in Japan.
How To Start A Business In Japan: A Quick Guide
Follow this simple guide on how to set up a company in Japan.
Get a visa
To start a business in Japan, foreigners must obtain one of the required visas.
- 4-month Business Manager Visa
- Start-up Visa
- Investor Visa
2. Open a bank account
Opening a bank account is another important step in how to start a business in Japan. However, choosing and opening a bank account is challenging in Japan, especially due to the language barrier and complex bureaucratic procedures. Fortunately, there are a few foreign-friendly banks that streamline the procedure.
- Sumitomo Mitsui Banking Corporation
- Shinsei Bank
- Seven Bank
- Japan Post Bank
3. Get a secured office space
The next step in how to start a business in Japan is finding a space. Find the one that best suits your business model. You have options to choose a space that meets your needs.
- Short-term office rentals
- Long-term office rentals
4. Get your articles of incorporation ready
The article of incorporation is crucial in Japan as it determines how the company will be managed. It is of different types for every sort of business structure. There are two categories-
- Article of Incorporation for a Foreign Individual
- Article of Incorporation for a Foreign Company
If you are a foreign individual expanding your business in Japan, you will need both. Once it is done, you need to have a notarised Article of Incorporation, which is another important part of how to start a business in Japan.
5. Register a trademark
Like any other country, registering a trademark is mandatory in Japan to claim company ownership. You can register-
- Letters
- Diagrams
- Symbols
- Pictures
- Colours
- Holograms
- Moving Marks
- Position Marks
- 3D Projects
Apply it at the Japan Patent Office. If you have a permanent residence or office in Japan, you can do it yourself; otherwise, you must hire a power of attorney.
6. Deposit initial capital
It is time to deposit the initial capital in a bank account, which is the next step in how to start a business in Japan.
7. Get all the documents ready
Apart from the Article of Incorporation, you will need other documents also, which include:
- Letter of Agreement
- Proof of the company’s seal registration completion
8. Apply for business registration
Once everything is done, file the application for registration at the Registry office or Homukyoku. The business registration fees will be
- 150,000 yen approximately for KK type of business
- 60,000 yen approximately for GK type of business
9. Get the registry certificate, seal certificate, and corporate number
The last step in how to start a business in Japan is to collect all the certificates and documents. When your business is registered successfully, you should acquire the registry certificate, company seal certificate, and corporate number to proceed. These documents are required to sign employment and business contracts and to open a business bank account in Japan.
With these instructions, starting a business in Japan will be no problem. Believe it or not, Japan is the first country to innovate in many areas besides technology. Its business strategies have always been successful. Find the best business opportunity and take the first step towards growth in this highly advanced country!
