Notes on setting up a company in Japan

Japan, an economic powerhouse with a long history of development, is not only an attractive destination for tourism but also a “promised land” for businesses looking for opportunities to expand their markets. This place not only owns a huge consumer market with high purchasing power, but also a world-leading technology and innovation center. However, customers still have some issues to note when establishing a company in Japan.

Notes on visa issues when setting up a company in Japan

Common types of visas

“Investor/Business Manager” visa: This is a visa issued to people who want to establish and run a company in Japan.

• Conditions to be granted:
  • Have a specific and feasible business plan.
  • Invest a significant amount of capital (usually 5 million yen or more).
  • We have an office in Japan.
  • There are employees working in Japan.
  • This is the most common type of visa for people who want to invest in a business in Japan.

“Specialist in Humanities/International Services” visa: This visa is suitable for people who work in fields such as consulting, translation, design, etc.

• Conditions to be granted:
  • Have the right professional knowledge and work experience.
  • Have a contract to work with a company in Japan.

Commerical/business visa: This visa is usually for short-term business purposes. There are two main types of Japan business visas:

• Single: For foreign nationals coming to Japan for business purposes. This visa is valid for 3 months and has a maximum stay of 15 days.
• Multiple Business Visa: Issued to official employees of Japanese companies.

The list of documents to apply for a visa includes

• Visa application.
• Passport;
• Card photo.
• Business plan.
• Proof of finances.
• Documents proving the business location.

Notes on directors when setting up a company in Japan

Ensuring that there is a Representative Director residing in Japan is an important requirement when establishing a company, especially for foreign-invested enterprises.

Role of the Resident Representative Director

• Legal Representative:
  • A representative director is a person who represents the company in legal transactions, contracts, and matters related to state agencies.
  • They are responsible for signing legal documents and are responsible before the law for the company’s operations.
• Running the company’s operations: The representative director is involved in running the day-to-day operations of the company, ensuring compliance with legal regulations and achieving business objectives.
• Meet Legal Requirements: Having a Resident Representative Director is a mandatory requirement for the company to be able to operate legally in Japan.

Options for having a Resident Representative Director

• Appointment of a foreigner with a long-term residence visa: If you are a foreigner and have a long-term residence visa in Japan (e.g., permanent residence visa, work visa), you can take on the role of Representative Director.
• Hire a Japanese person as a Representative Director: If you do not have a long-term residence visa, you can hire an experienced and reputable Japanese person to act as a Representative Director.
• Use of Representative Director services: Some companies provide Representative Director services for foreign businesses.

Notes on capital contribution when setting up a company in Japan

Although there is no minimum charter capital requirement, it is essential to determine a number that is suitable for the type and scale of the business, not only to cover the initial cost but also to build credibility with partners. If you need to apply for an “Investor/Business Manager” visa, the minimum capital is 5 million yen.

Choosing the form of capital contribution

• You can contribute capital in cash or other assets.
• If contributing capital with assets, it is necessary to have valid documents proving the value of the assets.

Deposit capital into a bank account

• The charter capital needs to be deposited into the company’s bank account in order to
• Keep transaction documents (bank statements, money transfer receipts) as evidence for capital payment.