Ask The Experts | Company Registration and Visas

Summary

This video provides expert insights on how foreign companies can successfully establish a business in Japan. It covers key steps like company registration, obtaining work visas, selecting the right company structure, and navigating Japan’s regulatory environment. Experts emphasize that Japan is welcoming to foreign investment, with no strict requirements for appointing Japanese directors or high capital thresholds. The process is explained clearly, including details on visa acquisition, especially for skilled professionals. JETRO’s role in supporting businesses entering Japan is highlighted, making it easier for foreign companies to expand into this promising market.

Takeaways

• 😀 Starting a business in Japan requires five key preparations: setting up the company, obtaining visas, setting up an office, handling personnel matters, and securing a residence.
• 😀 Japan does not restrict foreign investment in most industries, except for specific sectors like defense, media, and infrastructure.
• 😀 It's not necessary to appoint a Japanese executive or director when setting up a company in Japan. Foreigners can act as non-resident executives.
• 😀 While Japan does not mandate a resident director, it's important to consider tax and social insurance rules when choosing company executives.
• 😀 The minimum capital required to register a company in Japan is now only 1 yen, though a higher capital amount can enhance trustworthiness in the business environment.
• 😀 The amount of capital needed depends on factors such as the size and nature of the business, and could influence visa and business license requirements.
• 😀 To acquire a work visa for Japan, foreign nationals must first obtain a certificate of eligibility, apply for the visa at a Japanese embassy, and receive a residence card upon arrival.
• 😀 Japan offers 29 types of work visas, each designed for specific job categories. Requirements typically include relevant educational qualifications and salary standards.
• 😀 Japan does not require a local recruitment advertisement for work visa applications, which makes it easier for companies to sponsor foreign employees.
• 😀 Highly skilled professionals, such as engineers and academic researchers, can apply for a special visa that provides advantages like a longer-term visa and relaxed permanent residence requirements.
• 😀 Foreign companies looking to expand in Japan should consult with experts, such as those at JETRO, to navigate the process and benefit from preferential treatment and support.

Q & A

What are the key categories involved in setting up a business in Japan?

The main categories for starting a business in Japan include setting up the company, obtaining visas, setting up an office, handling personnel matters, and securing a place of residence.

Is it difficult for foreign companies to set up a business in Japan?

No, Japan's regulations for setting up a business are not particularly complicated, and the process is not as troublesome as it might seem. Many foreign clients have successfully expanded into Japan despite initial concerns.

Are foreign companies restricted from establishing a business in certain industries in Japan?

Yes, there are a few exceptions, particularly in industries related to defense, media, and infrastructure. These sectors have more restrictions for foreign investments.

Is it necessary to appoint a Japanese executive when registering a company in Japan?

No, Japan does not require a Japanese director or resident director for foreign companies. Executives can be non-residents, which makes the process more flexible.

What is the minimum capital required to start a company in Japan?

The minimum capital requirement used to be 10 million yen, but now you can establish a company with just 1 yen in capital. However, a higher capital amount may give your company a more trustworthy appearance.

How much capital is recommended for registering a company in Japan?

While you can register with a minimum capital of 1 yen, it is common to use several million yen depending on your industry and the size of your business. Larger capital amounts may be seen as more credible.

What is the process for obtaining a work visa for employees coming to Japan?

To obtain a work visa, the first step is to apply for a *Certificate of Eligibility* from the Regional Immigration Services Agency. Once approved, the next step is applying for a work visa at a Japanese consulate abroad.

Are there different types of work visas in Japan?

Yes, Japan offers 29 types of work visas, each for specific job categories. For instance, a work visa for office workers requires a relevant college degree and a salary that aligns with Japanese standards.

What are the advantages of the highly skilled professional visa in Japan?

The highly skilled professional visa offers several benefits, including a 5-year visa duration (as opposed to the usual 1-year visa), and it may relax requirements for applying for permanent residence. Points are awarded based on factors like education, work experience, and income.

Is it difficult for foreign companies to obtain a work visa for their employees in Japan?

Not necessarily. The requirements for a work visa are relatively straightforward. For example, an office worker visa requires a relevant degree and salary. In addition, Japan does not require foreign companies to advertise for local employees before applying for a work visa, unlike some other countries.

What is the role of JETRO in helping foreign companies enter the Japanese market?

JETRO (Japan External Trade Organization) provides valuable support to foreign companies entering Japan, offering advice on company registration, visa applications, business licensing, and more. They also help foreign businesses navigate Japan's regulations and provide expert guidance throughout the process.

What should foreign companies consider when establishing a business in Japan, aside from legal registration?

In addition to legal formalities, foreign companies should consider setting up an office, arranging accommodation for staff, and understanding Japan's social insurance and labor laws, which vary depending on the industry and employment contracts.