How to Start a Business

Don't miss this : 3 things startups often overlook when starting a business in Japan 

March 22, 2024
Previous Post| Tips for startups entering the Japanese market : How to establish a corporation in Japan

Do you now have a better understanding of the steps involved in establishing a Japanese corporation?

At first glance, looking at the steps, it appears to be a quick and easy process! You may be thinking, "This seems like a piece of cake!"

However, there are actually some "pitfalls" here and there. In this article, we will summarize the points you should pay attention to.

If you are actually considering establishing a company, please consider using the "Checklist to be prepared" at the end of this article.

▼ The flow is seemingly simple. In fact, there are various pitfalls…

1. translation of necessary documents into Japanese

→ Some people may try to proceed with the establishment of a Japanese corporation on their own.

However, among the documents required for registration, a Japanese translation of the foreign shareholders' list, the representative's ID card, and the certificate of residence must also be submitted to the Legal Affairs Bureau.

2. Are there any Japanese residents regardless of their nationality?

→ Capital must be remitted to a bank in Japan. A third-party account can be used, but a Japanese resident who can deposit the capital is required.

Also, to open a corporate account after incorporation, a Japanese resident representative is required unless there is a special reason.

We recommend that you set up a person who can handle your business in Japan locally.

3. Do you have an office?

→ We are aware that when setting up a company, there are many cases of starting small. You may consider a virtual office, but please be careful. 

When opening a corporate account after establishment, it may be difficult to pass the screening process for virtual offices or other properties for which it is hard to confirm the actual status.

It is necessary to check in advance with the office you are planning to sign a contract with to see if there are any problems with opening a bank account. 

Also, if you are considering obtaining a business management visa, please note that there are various additional requirements, such as whether or not the office has a private room or a signboard.

(Source : Unsplash)

▼ Before Establishing a Japanese Corporation! What should be resolved?

Many companies have decided to organize a corporation, but are not sure where to start clearing things up. Check the checklist below to find out what you need to examine now!

If you can accomplish all of the checklist, you can immediately start the practical work related to the registration application.


✔You have a collaborator or employee who is a resident of Japan

✔Office in Japan is fixed.

✔Capital structure of the Japanese company has been decided.

✔Business purpose in Japan is determined.

✔Decide whether you need to obtain a visa.

Written by Starsia (Link)

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Starsia is an accounting firm and consulting firm that specializes in supporting exchanges between Japan and Korea, with peace of mind for the development of Korean-Japanese business since its establishment in 2007.