Guide to Company Registration in Japan: Step-by-Step Instructions
Japan is a leading global economy and has great appeal to foreign entrepreneurs thanks to its advanced technology, stable political climate, and robust consumer market. But registering a company in the island nation can be tricky due to complicated paperwork, strict regulations, and language barriers. It usually involves going through detailed legal documents, getting government approvals, and sticking to specific compliance standards. The system is also known to be bureaucratic, and missing a single step can delay the entire registration process, or, in more serious cases, lead to severe legal and financial penalties.
This guide will break down what exactly goes into establishing a company in Japan with clear, step-by-step instructions — whether you’re planning a startup or expanding your existing company — so you can focus on launching and growing your business in one of the world’s most dynamic markets.
Main Steps and Documents for Registering a Company in Japan
There are several steps involved in registering a company in Japan, which must be followed precisely so that business owners avoid making errors in their applications.
Choosing the Type of Business Entity
This is the first and most crucial step of setting up a company in Japan. Foreign companies should choose between registering as a Kabushiki Kaisha (KK), which is akin to a corporation, or a Godo Kaisha (GK), comparable to an LLC. They can also set up a Branch Office or a Representative Office, but the latter does not need to be registered. The company must also submit its name to the Legal Affairs Bureau, which will check that it is not identical to organisations already established at the same address.
Preparing and Notarising the Articles of Incorporation
This document includes vital information, such as the company’s name, business activities, management structure, and initial capital. While a KK entity must be notarised by a public notary, this does not apply to their GK counterparts. However, owners of both company types must clearly state their registered business purposes to avert future complications.
Depositing Initial Capital
Besides being a mandatory requirement, an initial deposit (also called paid-in capital) indicates a company’s operational readiness and instills confidence in potential partners and banks. Both Japanese and foreign investors can do this by using a personal bank account in Japan. Once this is done, the bank will issue a Certificate of Capital Deposit, which is a key registration requirement.
Verifying Director Identity and Residence Status
Company directors must provide specific documents — usually passports or residence cards — to confirm their identity and legal standing in Japan. Foreign nationals incorporating businesses in the country need to submit evidence of their residential status there, such as resident cards or visas, while non-resident directors must present notarised translations of their identity paperwork.
Submitting Registration Documents
All necessary registration documents, such as the Articles of Incorporation, Certificate of Capital Deposit, and identity paperwork need to be submitted to the Legal Affairs Bureau. Every form must be complete and accurate as any mistakes or missing details can lead to significant delays or rejection, or even legal complications.
Creating and Registering a Company Seal
Another essential step is designing the company seal, known as an inkan, which is a legal signature to authorise contracts, banking, and official paperwork and, therefore, an integral part of the registration process. Company owners must furnish the Legal Affairs Bureau with their inkan to get a Certificate of Seal Registration verifying the seal’s authenticity.
Opening a Corporate Bank Account
Once the company has been registered, the owners must open a corporate bank account to manage finances and process transactions. This is done by submitting identification documents, proof of registration, and the inkan. The next step is to notify tax authorities of the company’s existence by reporting to the National Tax Agency and local tax offices.
How Long is the Company Registration Process in Japan?
The timeframe to incorporate a business in Japan depends on the business structure chosen. Launching a KK company takes about four weeks from start to finish, while a GK usually requires 2-3 weeks. Establishing a Branch Office generally takes 2-4 weeks, depending on how complex the foreign company’s existing is. However, it can take longer if a company needs specific licences to operate.
Most delays are caused by incomplete paperwork, mistakes in forms, or translation errors. Documents submitted in Japanese must be error-free and complete. Issues with translations of official documents, particularly for non-resident directors, also frequently stall applications.Many companies prevent hold-ups by using professional services well-versed with Japanese corporate regulations to review documents and translations before submission. Preparing required documents in advance and ensuring accurate translations reduce waiting timesignificantly. Another way to shorten registration periods is to get in touch with banks and legal advisors to streamline processes like capital deposits and notarisation.
How Much Does Company Registration in Japan Cost?
Companies must pay a one-time fee during the initial set-up called a registration tax, which starts from ¥150,000 for a KK firm, and does include notary fees of about ¥50,000. GK incorporation costs ¥60,000, and does not need notarisation. Branch office registration typically entails about ¥90,000. This should not be confused with a licence tax, which is an annual fee that companies pay after registration.
Foreigners who want to run a company in Japan need a visa, the most common choice being the Business Manager Visa, which is designed specifically for company founders. It requires proof of at least ¥5 million in investment capital or that two full-time employees reside in Japan, a detailed business plan, and an office space in the country. Another cost consideration is the paid-in capital needed to start a business in Japan. Legally, the minimum requirement is ¥1, but businesses typically deposit at least ¥1 million to gain credibility with banks and clients.
Apart from these charges, there are hidden costs like document translations, legal consultations, and administrative services. Professional translation services can cost ¥10,000-¥20,000 per document, and hiring legal or accounting experts may differ based on how much paperwork is needed to set up the company.
Common Mistakes to Avoid When Registering a Company in Japan
Japanese authorities need complete and accurate addresses, including building and floor details. This should not be taken lightly because even minor errors like using abbreviations or incomplete addresses can cause major delays. Discrepancies can lead to hold-ups in an application, or even its outright rejection.
Incorrect use of the company seal (inkan) is another issue. The seal has to match the registered design, and all documents requiring stamping must be handled properly. Even an illegible seal can cause a registration application to be rejected.
While the Articles of Incorporation defines a company’s activities, making it vague or overly narrow is risky. Limiting its scope too much can create legal issues if company owners later decide to expand their operations. Clearly outlining future business objectives gives directors room for flexibility later.
Registering a company in Japan involves careful planning at every stage, right from choosing a business structure to submitting accurate documents to the relevant authorities. Common mistakes, such as incomplete addresses, incorrect seals, and unclear Articles of Incorporation can delay approval. It can be helpful to seek professional support to streamline the process and ensure compliance.
Ready to register your company in Japan and launch your business venture?
Whether you’re starting fresh or expanding your operations, we’re here to offer expert support, helping you navigate complex paperwork and regulatory hurdles. Contact us today to let our experienced team streamline the process, ensuring compliance and paving the way for your success in this dynamic market. Don’t let details delay your progress—act now!
