Guide for Foreigners: Starting a Company and Doing Business in Japan

For foreigners thinking about starting a business in Japan, the rules and procedures can feel complicated and overwhelming.

At Royal Office. we provide step by step support, from planning your business and forming a company to handing registrations and applying for a Business Manager visa, so that even those new to the Japanese system can start with confidence.

In this article, we will introduce the general flow from company establishment to launching your business, in a simple and easy-to-understand way.

1. Plan Your Business and Choose a Comapny Type

First, you need to clarify what kind of business you will be conducting. Then, you need to choose a company type that suits your business from among the Japanese corporate systems.

In Japan, there are several types of companies, such as Kabushiki Kaisha (KK) and Godo Kaisha (GK) . Each has its own characteristics, so it is important to consider your future business plans and plans for staying in Japan when making your decision.

At this stage, it is important to design not only the current business concept, but also to take into account future applications for residence status and the continuation and expansion of the business.

Even if the details of your business are not yet clear, we can proceed with your consideration while sorting out the expected conditions and direction. We provide advance consultations on business plans and information on multiple options.

2.How to Establish a Company in Japan

Once you know your business plan and company type, you can start the official steps to register your company.

In Japan, the general process is as follows:

• Creating basic company rules (Articles of Incorporation)

• Prepare capital to start a business

• Apply for company establishment at the Legal Affairs Bureau

If this is your first time setting up a company in Japan, you may encounter many unfamiliar terms. However, if you go through the process carefully and check each item, you will be able to complete the procedures without any difficulty.

3. Notifications and Preparations after Company Establishment

Once the company is established, preparations are made to actually start the business.

The goal at this stage is to get the company ready to officially operate.

First, you will need to submit a notification of company establishment to the tax office or local government. This will register the company for tax purposes.

Next, if you plan to hire employees or if certain conditions apply, Social insurance and labor-related procedures will be required.

You will also need to open a bank account in your company's name for business purposes.

As a general rule, receipt of sales revenue and payment of expenses are made through this account.

In addition, we will provide you with an office and working environment to conduct your business. Having a place where you can actually carry out your work is also an important point in terms of running your business.

By going through these preparations one by one, your company will be ready to start operations smoothly.

Support for Applying for a Business Manager Visa (if necessary)

If you are a foreigner planning to live in Japan while running a business, you need the correct visa.

The Business Manager visa is designed for foreigners who establish and manage a company in Japan.

The following points will be subject to review for this status of residence:

• Whether your company is properly established?

• What business do you plan to operate?

• Whether your company has the necessary structure and environment to run the business?

It's important to check that your company meets the visa requirements before applying. Preparing the documents and information early makes the process easier.

When applying for and completing procedures for a status of residence, you will need to prepare documents and organize the details.

If you have any questions, one way to deal with them is to check the information as soon as possible and consult with an expert.

After the business starts

Even after starting business, there are ongoing tasks to manage your company:

Accounting and tax management, including sales and expense management and tax-related matters, are important elements for business continuity.

In addition, you will be required to check and properly manage contracts with business partners and various documents used within the company.

If you are a foreign national with a residence status, you may need to go through procedures to renew your residence status or if there are changes to your business operations.

It is important to continue operating as a company while checking the necessary measures depending on the business situation.

For those starting a business in Japan for the first time

When starting a company or running a business in Japan, there are many systems and procedures to follow, and many people find them difficult to understand at first.

However, by understanding the overall flow beforehand, you can proceed while organizing what you need to prepare now.

At the Royal Office,

We provide easy-to-understand guidance tailored to each customer's situation, from company establishment and various notifications to operational support after the business starts.

If you are unsure about the systems and procedures, or if this is your first time doing business in Japan, please feel free to contact us.