The establishment procedure of a company can be quite complex, as many important decisions must be made during the process. For example, deciding which type of company best suits your needs, who your business partners will be, how to regulate the rights/obligations of each business partner and investor, how much to invest, what businesses to operate, deciding on the company structure, etc.
On top of this, in the case of investment by a foreign individual or foreign entity, one must consider the visa implications and requirements, which are often much more demanding than the establishment procedure itself. Until very recently, it was not possible to establish an entity in Japan without designating at least one representative with an address in Japan (resident representative), but the legal affairs bureau relaxed this requirement in March 2015, and now it is possible to register a Japanese company with no resident representatives. Moreover, it is still necessary to have at least the initial involvement of a contact based in Japan, as the initial capital must be invested into a Japanese bank account. This bank account must be the bank account of one of the initial investors (promoters) or a representative officer of the Japanese company, thus it is necessary to have someone with a Japanese bank account be involved as a minor shareholder or representative at the time of initial establishment. Therefore, the fact remains that it is still difficult for international businesses to enter the market without assistance from a local contact. Also, when the representative of a company is a foreign national in need of a visa (most often the investor/business manager visa), it is necessary to structure the company in a certain way as to satisfy the visa requirements.
In reality, it is almost impossible to create a company bank account without a resident director. Thus, in order for a foreign business to fully operate in Japan, it is necessary to have a resident director (note – this person does not necessarily need to be a resident at the start, it is possible to designate a member currently based overseas as long as this person is able to obtain the necessary visa).
Also, many types of businesses require business licenses to legally operate in Japan, for example, restaurants, purchasing/selling of used goods and used cars, recruitment, purchasing/selling of real estate, and import/export of various products, etc. Please consult to find out whether or not the business you are planning to operate requires a business license.
Visa consulting, visa structuring and application services
Contact us for free initial consulting or to inquire about visa options and services. Whether you are an individual with new career plans or questions/concerns regarding your visa status, or a corporation seeking a smooth and efficient solution to facilitate your hiring process or in search of an accredited agency to submit visa applications on behalf of your employees, contact us to discuss your needs. Personalized visa solutions and services by an accredited Immigration agency available in both native English and Japanese.