The Types of Starting business in Japan are as below;

 

1. Representative Office

Fitting to the preparatory stages of your business launch in a small scale to study Japanese markets and plan for business structure etc. in future. Representative Offices can be easily set up without registration.
Representative offices are, however, not permitted to get involved in any of actual sales transactions in Japan. Furthermore, a representative office can neither open a bank account nor make lease contracts of real estates for office etc. as a legal entity as such. Therefore, you need a representative who makes such agreements/contracts on an individual basis.

 

2. Branch Office
In order to operate your business actually involved in any kind of transactions in Japan, you need to set up a branch office or a subsidiary office. A branch office can be more easily set up than a subsidiary office, which only needs to locate an office, assign a representative of the office and be registered with needful information.
Unlike a representative office, it can open a bank account and make a lease contract of real estates for its office.
However, a branch office is regarded as a local organization that operates business transactions upon authorization by the head quarter in a foreign country.. Therefore, all the liabilities and credits as outcome of its business operations and transactions are to ultimately belong to the head quarter.

 

3. Subsidiary Company

To be a legal entity in Japan, which operates business in all kinds of transactions, you need to set up a subsidiary company in the form of Kabushiki Gaisya (KK – a stock company) or Godo Gaisya (LLC – a limited liability company).
A subsidiary is regarded as an independent incorporation from the head quarter, all the liability and credits belong to itself as well as the other common Japanese incorporations.
There would be other forms of incorporating than a subsidiary company is to set up a joint venture company with a Japanese company, or an investment company by having your own equities as a partner of Japanese investors.
Other methods besides the establishment of a subsidiary by which a foreign company may invest in Japan are the creation of a joint venture company with a Japanese company or an investment company as partners.

 

 

2.General flow of procedures for establishing a Kabushiki-Kaisha


1. Determination of profile of joint-stock corporation to be established

               ↓

 2. Examination at the Legal Affairs Bureau of similar corporate names

           ↓

 3. Preparation of joint-stock corporation’s articles of incorporation

          ↓

 4. Acquisition of registration certificates, etc. for parent company, and preparation of affidavits regarding profile of parent company and affidavits regarding signatures of representatives of parent company (affidavits must be attested by a public notary in equity   participants own countries

                          ↓

 5. Notarization of joint-stock corporation’s articles of incorporation by Japanese notary public

 6. Application to bank for capital custody and issue of capital custody certificate

                       ↓

 7. Remittance of joint-stock corporation capital to special bank account
                       ↓

 8. Appointment of directors and other officers, such as representative directors and auditors

 9. Examination by directors and auditors of legality of establishment procedures

                       ↓

 10. Application to the Legal Affairs Bureau for registration of joint-stock corporation establishment (joint-stock corporation establishment date); registration of company seal with the Legal Affairs Bureau

                         ↓

 11. Acquisition of certificate on registered information and company seal registration certificate (approx. two weeks after application for registration)

                  ↓

 12. Opening of bank account under company name

                               ↓

 13. Notification of stock acquisition to the Bank of Japan
(notification prior to company establishment may be required in certain sectors)
 

 

(FEE/EXCLUDING TAX)

【Branch Office】

Basic charge                        ¥150,000

Registration Tax                        ¥90,000

Certificate of register                      ¥1,000

Certificate of registered seal-impression             ¥500

【Setting up a Company in Japan】

Basic Charge                                                  ¥180,000

Registration Tax                ¥150,000

Certificate of register                                     ¥1,000

Certificate of registered seal-impression     ¥500

Notarization Fee                                                 ¥50,000

Cerfified copy of the articles of incorporarion            ¥250 (per sheet)