How to register Company in Japan. Step-by-step guide.
Lets have a look on the example of Nagasaki, Japan and talk about registering the company there.
Registering a company in Nagasaki, Japan, follows Japan’s national legal framework, overseen by the Ministry of Justice’s Legal Affairs Bureau. Nagasaki, a port city with a free trade zone, offers advantages like tax incentives and logistical support, particularly for industries like shipbuilding, tourism, and trade. This step-by-step guide focuses on establishing a common business entity, such as a Kabushiki Kaisha (KK, similar to a corporation) or Godo Kaisha (GK, similar to an LLC), tailored for a foreign individual or entity. The process is the same across Japan, but I’ll highlight Nagasaki-specific considerations where applicable. Costs are approximate, based on 2025 data, with an exchange rate of ¥150 = $1.
Step-by-Step Guide to Register a Company in Nagasaki, Japan
1. Choose a Business Structure
- Kabushiki Kaisha (KK): A joint-stock company, ideal for larger businesses or those seeking credibility with investors or clients. Requires at least one representative director (who must reside in Japan for registration, though exceptions exist for foreign directors).
- Godo Kaisha (GK): Similar to an LLC, simpler and more flexible, suitable for startups or small businesses. No residency requirement for directors, making it popular for foreigners.
- Other Options: Branch office (for existing foreign companies) or sole proprietorship (less common for foreigners due to visa and liability issues).
- Nagasaki Consideration: A GK is often preferred for small businesses in Nagasaki’s free trade zone, as it’s cheaper and easier to set up. KKs are better for businesses aiming to leverage Nagasaki’s shipbuilding or tourism sectors, where credibility matters.
2. Determine Company Details
- Company Name: Choose a unique name in Japanese (katakana or kanji) or English. Include “Kabushiki Kaisha” or “Godo Kaisha” in the name (e.g., “Nagasaki Tech KK”). Avoid restricted terms like “bank” unless licensed.
- Business Purpose: Define the company’s activities (e.g., import/export, tourism services). This must be specific and listed in the Articles of Incorporation.
- Registered Address: Select an address in Nagasaki. You can use a physical office, a virtual office, or a co-working space. Nagasaki’s free trade zone (e.g., near Dejima Wharf) offers tax benefits for qualifying businesses like logistics or manufacturing.
- Capital: Minimum capital is ¥1, but ¥1,000,000–¥5,000,000 ($6,667–$33,333) is recommended for credibility and visa applications (e.g., Business Manager Visa). Funds must be deposited in a Japanese bank account.
- Directors/Shareholders: For a KK, appoint at least one representative director (resident in Japan). For a GK, appoint a manager (can be non-resident). Shareholders can be individuals or entities, foreign or domestic.
3. Check Company Name Availability
- Contact the Nagasaki Branch of the Fukuoka Legal Affairs Bureau to verify that your company name is unique. This can be done online via the Legal Affairs Bureau’s website or in person.
- Cost: Free for name checks.
- Tip: Avoid names too similar to existing businesses to prevent rejection.
4. Prepare Articles of Incorporation
- Draft the Articles of Incorporation (Teikan), including:
- Company name
- Business purpose
- Registered address (in Nagasaki, e.g., Nagasaki City or a free trade zone area)
- Capital amount
- Names of directors/shareholders
- Fiscal year (typically April 1–March 31)
- For a KK, the Articles must be notarized by a public notary in Japan (e.g., at a notary office in Nagasaki or Fukuoka).
- Cost:
- Notarization (KK only): ¥50,000 ($333)
- Stamp duty: ¥30,000 ($200) (waived if filed electronically)
- Nagasaki Note: Notary offices are available in Nagasaki City (e.g., near Nagasaki Station). For a GK, notarization is not required, saving time and cost.
5. Obtain a Company Seal (Inkan)
- Create a company seal (hanko) for official documents. This is mandatory for all Japanese companies.
- Types: Jitsuin (registered seal), Ginkoin (bank seal), Kakuin (square seal for contracts).
- Cost: ¥5,000–¥20,000 ($33–$133) depending on quality.
- Nagasaki Note: Seal shops are common in Nagasaki City; order through local vendors or online services like Hanko Shop.
6. Deposit Capital
- Open a personal bank account in Japan (e.g., at Japan Post Bank, MUFG, or Sumitomo Mitsui in Nagasaki) to deposit the capital. For foreigners without a Japanese address, some banks (e.g., Shinsei Bank) allow accounts with overseas addresses.
- Transfer the capital amount (e.g., ¥1,000,000) and obtain a bank certificate proving the deposit.
- Cost: Bank fees (¥0–¥2,000, $0–$13).
- Tip: Use a digital bank like Wise for easier international transfers, then move funds to a Japanese bank.
7. Register the Company
- Submit the registration application to the Nagasaki Branch of the Fukuoka Legal Affairs Bureau (located in Nagasaki City).
- Required documents:
- Articles of Incorporation (notarized for KK)
- Company seal registration form
- Bank certificate of capital deposit
- Identification of directors (e.g., passport copies, residence cards if applicable)
- Consent forms from directors
- Cost: Registration fee
- KK: ¥150,000 ($1,000) or 0.7% of capital (whichever is higher)
- GK: ¥60,000 ($400)
- Processing Time: 1–2 weeks. You’ll receive a Certificate of Registration and a Seal Certificate (Inkan Shomeisho).
8. Register for Tax and Social Insurance
- Tax Registration: Notify the Nagasaki Tax Office within 2 months of registration to obtain a Corporate Tax ID. File forms for national and local taxes (e.g., consumption tax, corporate tax).
- Social Insurance: Enroll in Japan’s social insurance system (health, pension) at the Japan Pension Service Office in Nagasaki if you have employees or a resident director. Mandatory for KKs with resident directors; optional for GKs without employees.
- Cost: Free for filings, but social insurance premiums vary (e.g., ¥20,000–¥50,000/month for a director).
- Nagasaki Note: The Nagasaki Tax Office is located near the Legal Affairs Bureau, streamlining these steps.
9. Open a Corporate Bank Account
- Open a business bank account at a bank in Nagasaki (e.g., MUFG, Sumitomo Mitsui, or local banks like Shinwa Bank). Provide:
- Certificate of Registration
- Seal Certificate
- Articles of Incorporation
- Company seal
- ID of representative director
- Cost: ¥0–¥5,000 ($0–-$33) for account setup.
- Tip: Some banks may require a physical office address in Nagasaki, so avoid virtual offices for this step if possible.
10. Obtain Necessary Licenses/Permits
- Depending on your business type, you may need specific licenses:
- Import/Export: Register with Japan Customs Service for trade in Nagasaki’s free trade zone.
- Tourism: A travel agency license is required for tourism businesses (apply via the Ministry of Land, Infrastructure, Transport and Tourism).
- Food/Beverage: Health permits from Nagasaki’s Public Health Center for restaurants or food processing.
- Cost: Varies (¥10,000–¥100,000, $67–$667).
- Nagasaki Advantage: Businesses in the free trade zone may qualify for reduced customs duties or tax exemptions; contact the Nagasaki City Economic Department for details.
11. Apply for a Business Manager Visa (if needed)
- If you’re a foreigner planning to manage the company in Japan, apply for a Business Manager Visa at the Nagasaki Immigration Office (part of the Fukuoka Regional Immigration Bureau).
- Requirements:
- Business plan
- Proof of capital (¥5,000,000+ recommended)
- Office lease or address proof
- Certificate of Registration
- Cost: ¥5,000 ($33) application fee.
- Processing Time: 1–3 months.
- Tip: A physical office (not virtual) in Nagasaki strengthens the visa application.
12. Set Up Accounting and Compliance
- Hire an accountant or tax consultant familiar with Japanese regulations to manage bookkeeping, tax filings (quarterly/annual), and compliance.
- Register for My Number (Japan’s tax ID system) for directors and employees.
- Cost: ¥10
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