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If a foreigner who is running a corporation overseas wants to expand their business into the Japanese market, they can do so in three ways: (1) set up a representative office, (2) establish a branch office in Japan, or (3) establish a subsidiary (or Japanese corporation). A representative office is used to conduct market research in Japan, and is prohibited from conducting sales activities (revenue-generating activities).
In addition, if a foreigner wants to start a new business in Japan, they must set up a corporation and obtain a visa. The recently established “Start-Up Visa” can be applied for at designated administrative offices (see below), making the process relatively easy for foreigners who want to start a business in Japan.
Below is information necessary for foreigners to set up and start a company in Japan, including types of visas (4-month business manager visa, Start-Up Visa), what is needed to set up a company, types of corporations, and where to register the company.
- What is necessary to start a business (register a corporation) in Japan?
- What visas are required for foreigners to start a business in Japan?
- 4-month Business Manager Visa and Start-up Visa
- If you currently hold another visa
- Types of Japanese corporations
- Where can I set up a company and submit tax documents in Tokyo?
- Should I invest in real estate under my personal name or a company name?
- Useful English websites for foreigners establishing or starting a company in Japan
What is necessary to start a business (register a corporation) in Japan?
1. Company address registration
It is generally difficult to register a company address using a virtual office, rental office, or home address, so it is recommended that you register an office address with a proper rental contract. JETRO also provides furnished offices, which can be used free of charge for 50 days if certain conditions are met.
2. Meet any of the following conditions
[a] The business is operated by two or more full-time employees residing in Japan (excluding those residing with a status of residence in the upper column of Schedule 1 of the Act) other than those engaged in its management or administration.
[b] The amount of capital or total investment is 5 million yen or more.
[c] The business is deemed to be of a similar scale to a or b.
From the Ministerial Ordinance prescribing the criteria for Article 7, Paragraph 1, Item 2 of the Immigration Control and Refugee Recognition Act.
For more details, please contact the following institutions:
・Immigration Bureau
・Japanese embassies overseas
What visas are required for foreigners to start a business in Japan?
Foreigners need a visa to start a business in Japan. If you do not already have a Japanese visa, you will need a “4-month business manager visa” or a “start-up visa” issued by some areas such as Tokyo and Fukuoka.
If you already have another visa, you will need to check in advance whether you can start a company on your current visa or whether you will need a new visa.
Even with a short-term stay visa of 90 days, it is possible to carry out preparatory activities for a business as long as the activities are not profit-generating. For more information, please check the Ministry of Foreign Affairs’ website.
→ info@jbiz.dreaman.co.jp or https://jbiz.dreaman.co.jp/enpinq/
We also offer free consultation → https://jbiz.dreaman.co.jp/freeconsultation/
Click here for the Japan Business Support website → https://jbiz.dreaman.co.jp/en/
4-month Business Manager Visa and Start-up Visa
1) How to obtain a 4-month business manager visa
The “4-month Business Manager Visa” is a new visa that was established in April 2015. If you can provide solid proof that you are preparing to start a business in Japan and your application is approved, you can obtain this visa and start your business immediately after arriving in Japan. This visa is obtained before you arrive in Japan, so you will need to submit the necessary documents to the Japanese Immigration Bureau from overseas before coming to Japan.
The “4-month business manager visa” is valid for 4 months, as the name suggests, and allows you to do the following:
– Obtain a residence certificate (you must have a registerable address)
– Open a bank account
– Register a corporation
You can use the four-month visa period to set up a company in Japan, and if permission is granted, you can extend the visa to a one-year business manager visa.
Monthly apartments where you can register your address
To obtain a resident registration card, you must be staying in a place where you can register your address at the local government office. You cannot register your address at a hotel. However, some monthly apartments do not allow you to register your address, so be sure to tell the real estate agent that you need to register your address when you apply or inquire.
- Fully furnished monthly apartments for short term rent in central Tokyo
2) How to obtain a Start-Up Visa
The Startup Visa is a visa that aims to increase the number of foreign entrepreneurs and to make the process for them smoother by relaxing regulations. It is issued in some areas approved by the government, such as Tokyo and Fukuoka City. It is valid for six months.
As of April 2023, it is in effect in Tokyo, Hokkaido, Osaka, Kobe, Aichi, Oita, Fukuoka, and other areas.
To obtain this visa, first submit the necessary documents, including a business plan, to one of the regional offices listed above. All documents must be written in Japanese. If the documents pass the examination, a letter of recommendation will be issued. Submit the letter of recommendation to the Immigration Bureau to apply for a visa, and if there are no problems, the visa will be issued.
As mentioned above, the validity period of this visa is six months, which is two months more than the four-month business management visa. During that time, you can prepare to establish a company. If you then pass the examination, the period will be extended by another six months.
When a foreigner starts a business in Japan, they need to obtain a “Business Manager” status of residence. In order to obtain this status of residence, they must meet certain requirements, such as opening an office before entering the country, employing at least two full-time employees, or investing at least 5 million yen in Japan.
For this reason, it is extremely difficult for a foreigner to start a business alone without a domestic partner.
Under the Tokyo Metropolitan Government’s special zone system, a “Business Manager” status of residence can be granted as an exception for six months if the Tokyo Metropolitan Government checks the business plan before the Immigration Bureau of Japan (Immigration Bureau) examines the business plan.
Foreigners who plan to start a business can use this six-month period to carry out preparation activities for starting a business after entering the country.
We will also provide unique support to foreigners by utilizing “Business Concierge Tokyo” so that they can meet the requirements and renew their status of residence six months later.
The startup visa is valid for six months and allows you to do the following:
– Obtain a residence certificate (you must have a registerable address)
– Open a bank account
– Register a company
If you currently hold another visa
If you already have a visa and are residing in Japan, it is possible to establish a company (start a business) while your visa is still valid. You may then need to change your type of visa. The procedure, whether or not you are required to change your visa, and what the impact of the change will be will all depend on your current visa, so we recommend that you consult with the Immigration Bureau or an expert before establishing a company.
→ info@jbiz.dreaman.co.jp or https://jbiz.dreaman.co.jp/enpinq/
We also offer free consultation → https://jbiz.dreaman.co.jp/freeconsultation/
Click here for the Japan Business Support website → https://jbiz.dreaman.co.jp/en/
Types of Japanese corporations
There are four types of corporations in Japan: joint stock company, limited liability company, general partnership company, and limited partnership company. Many companies choose either joint stock company or limited liability company. Limited liability company is a renamed version of “limited liability company,” and it is currently not possible to register a limited liability company. If you have a corporation abroad, you can also set up a branch office in Japan.
Industries that require approval
You may need special approval to start a business.
Examples: food businesses, travel agencies, temporary staffing agencies, hotels, liquor stores, finance, pharmaceuticals, etc.
For more details, please see the JETRO page below.
Representative Office, Branch Office and Subsidiary Company
Comparison on of Types of Business Operation
Where can I set up a company and submit tax documents in Tokyo?
Tokyo Business Start-up One-Stop Center
At the Tokyo Business Start-up One-Stop Center, you can get everything you need to start a business done in one go. You can also get free consultations and document checks from a small business consultant.
Application and acceptance documents
・Certification of articles of incorporation
・Corporate establishment registration
・Taxes (national and metropolitan taxes)
・Immigration control
・Employment insurance
・Labor insurance
・Health insurance and employee pension insurance
Tokyo Business Start-up One-Stop Center Office
- Akasaka Ark Mori Building
Ark Mori Building, 1-12-32 Akasaka, Minato-ku, Tokyo
7th floor, Japan External Trade Organization (JETRO) Headquarters
TEL: 81-3-3582-4934 - Shibuya Satellite Center
1st floor, Shibuya Dogenzaka Tokyu Building, 1-10-8 Dogenzaka, Shibuya-ku, Tokyo
TEL: 81-3-5489-4630 - Yurakucho Satellite Center
2nd floor, SusHi Tech Square, 3-8-3 Marunouchi, Chiyoda-ku, Tokyo
TEL: 81-3-4560-0634
Foreign Resident Support Center
http://www.moj.go.jp/isa/content/930005925.pdf
The Foreign Resident Support Center (FRESC) in Yotsuya, Tokyo has the following eight organizations on one floor.
・Immigration Services Agency
・Japan External Trade Organization (JETRO)
・Tokyo Immigration Bureau
・Ministry of Foreign Affairs Visa Information
・Tokyo Legal Affairs Bureau Human Rights Protection Division
・Tokyo Labor Bureau Special Consultation and Support Room for Foreigners
・Japan Legal Support Center (Hou-Terasu)
・Tokyo Foreign Employment Service Center
FRESC
13F Yotsuya Tower, 1-6-1 Yotsuya, Shinjuku-ku, Tokyo
TEL: 0570-011000 / 03-5363-3013
Access: 1 minute walk from Yotsuya Station
http://www.moj.go.jp/isa/content/930005925.pdf
Should I invest in real estate under my personal name or a company name?
When foreigners invest in real estate in Japan, the page linked below explains whether they should invest under their personal name or a corporate name, as well as the advantages and disadvantages of each.
>> Individual vs Corporate Investment Property Ownership
Useful English websites for foreigners establishing or starting a company in Japan
How to Set Up Business in Japan by JETRO
JETRO Office Space for Free
Tokyo Employment Consultant
Tokyo Innovation Base
Start-Up Visa (Ministry of Foreign Affairs of Japan)
There are law firms and support companies with specialists in company establishment and startup for foreigners, and in some cases, it may be easier to obtain a visa if you receive support from an expert.
→ info@jbiz.dreaman.co.jp or https://jbiz.dreaman.co.jp/enpinq/
We also offer free consultation → https://jbiz.dreaman.co.jp/freeconsultation/
Click here for the Japan Business Support website → https://jbiz.dreaman.co.jp/en/
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