Three methods and basic knowledge for foreign companies to establish a company in Japan.

In recent years, as globalization progresses, more and more foreign companies are establishing companies in Japan.There are three methods to do this, and certain basic knowledge is required.Knowing these will enable smooth establishment when establishing a company in Japan.In this article, we will explain the three methods and basic knowledge for foreign companies to establish a company in Japan.

Three methods for foreign companies to establish a company in Japan

There are three methods for foreign companies to establish a company in Japan.

Establishing a Japanese corporation

When using this method, the company will take a corporate form such as a joint stock company, and the type you choose will depend on the nature and situation of the company you are trying to establish.In this case, it is important to note that the company will be treated as a separate corporation from the foreign company.The advantage is that it is a highly reliable method, so it is easy to borrow funds and obtain a residence status for the representative.The disadvantage is that the costs are relatively high.

Establishing a Japanese branch

Unlike establishing a Japanese corporation, this is a method of establishing a company in Japan as part of the original overseas company.The advantages include low costs and simple procedures.On the other hand, there are disadvantages such as the difficulty of borrowing funds and obtaining a residence status for the representative, so a Japanese branch will likely be seen as a base for the original overseas company to conduct business in Japan.

 Establishing a representative office

A representative office is an office established by an overseas company to assist in sales activities in Japan.Therefore, there are disadvantages such as not being able to conduct sales activities or rent an office in the name of a representative employee.However, if the purpose of establishing an office is limited to collecting information in Japan or purchasing goods, it is the best method because the procedures are simple and registration is not required.

Basic knowledge for overseas companies when establishing a company in Japan

From here, we will explain the basic flow of establishing a Japanese corporation as basic knowledge for overseas companies when establishing a company in Japan.

 Decide on the basic matters

When establishing a company, you need to decide on the capital, trade name, company purpose, head office location, officers, etc.

Create the establishment certificate

Once the basic matters have been decided, you will need to prepare the establishment certificate.You will also need several other certificates for establishment, such as a certified copy of the register and a business license, so collect them.

Prepare the signature certificate of the foreign company representative

When establishing a company in Japan, a document called the representative's seal certificate is required, but in the case of a foreign company representative, a document called a signature certificate will be prepared instead.

Attestation of the articles of incorporation

The establishment certificate and signature certificate prepared up to this point will be attested at a notary public office.This can be entrusted to a lawyer or other professional.

Pay the capital

Pay the initially determined amount of capital to a financial institution, etc.You will also need to obtain a document called a stock acquisition report.

 Apply for registration of incorporation

Apply for registration of incorporation to the Legal Affairs Bureau.

Submit share acquisition report

The share acquisition report obtained when the capital was paid in must be submitted to the relevant minister via the Bank of Japan.

Submit a notification of incorporation

This is submitted to the relevant government office, but as an exception, it is not necessary to submit it if you are in one of the 23 wards of Tokyo.

 Summary

In this article, we have explained three methods and basic knowledge for overseas companies to establish a company in Japan.When an overseas company establishes a company in Japan, it is necessary to choose a method that suits the company you are trying to establish, and the system is complicated, so we recommend consulting a lawyer who is a legal expert.Yoshida Koichiro Law Office accepts requests for company establishment.Please feel free to contact us.The Japanese Lawyer with Real International Experience