When your company’s project has become a good business, it is time to think about how to export your products to another country. On this occasion, Amtech USA will present the requirements to start a business in Japan.
Want professional advice from a manufacturer’s agent to know more about the necessary procedures for foreign trade or establishing a business in any country? Here is our guide to
start a business in Japan.
- The first step to start a business in Japan is to make a company seal; it is essential to make a seal for the company that will create a business, as stated in Article 20 of the Trade Registration Law in Japan.
- After completing the company seal registration, the entrepreneur (individual) has to obtain the seal registration certificate from the corresponding office. This certificate must be presented at the Office of Legal Affairs of the Ministry of Justice in Japan (upon registration). The fee for this registration is approximately JPY 400 per seal registration certificate but varies from district to district.
- The third step in registering a company in Japan is registering with the Office of Legal Affairs of the Ministry of Justice. To request this registration, the entrepreneur or any manufacturer’s agent must submit a duly completed application form and supporting documents, including the seal registration certificate and the Articles of Incorporation. This can be done at the Legal Affairs Bureau headquarters or any designated branch in major cities (Tokyo, Yokohama, Osaka, Nagoya, Kobe, and Fukuoka). Typically, a judicial complete this registration procedure on behalf of the company. Under the Mercantile Registry Regulations that came into force in June 2004, the application for the business registry can be filed online. To do this, The user must obtain an electronic signature or a digital certificate. There are two types of digital certifications: data files and IC cards. The user must purchase an IC card reader to use the system.
- Present the notification of the incorporation of companies and the opening of a payroll office; and request the approval of blue-colored tax returns at the District Tax Office Notification of company incorporation must be filed within two months from the date of incorporation Notification of opening of a tax office payroll must be filed within one month of opening a payroll office The request for approval of the blue tax returns must be filed either within three months of the date of incorporation or one day before the end of the first fiscal year, whichever comes first.
- As a fifth instruction, the notification of the exercise of activity must be presented at the tax office of the municipal or prefectural government. Suppose the head office of the company is located within the 23 wards of Tokyo. In that case, the company must file a notice to conduct business with the Tokyo Metropolitan Government tax office within 15 days of incorporation. Suppose the head office of the company is located outside 23 wards of Tokyo. In that case, the company must submit a Notification of Incorporation to the municipal government tax office and prefectural government tax office within one month after the company’s incorporation.
- File required labor notices and labor standards with the Office of Labor Standards. Employees are automatically provided with employment insurance as soon as they are hired. Work Insurance generally includes employment and worker’s compensation insurance. Upon recruitment, the company must promptly submit the following documents to the competent Labor Standards Inspection Office:
- Notification of employment insurance application
- Notification of initiation of labor insurance within ten days of insurance coverage initiation date
- Notification of insurance quotes within 50 days of the date of insurance coverage starting.
- Employment standards (once the company hires ten or more employees)
- Agreement on overtime and work on holidays if the company expects its employees to work overtime or on holidays, regardless of the number of employees
- Submit applications for health insurance and public welfare pension at the Japan Pension Office. As soon as the company and its employees are covered by health insurance and general welfare pension, the company must submit the following documents to the Insurance Office Social within five days of the company insurance coverage:
– Notification of the acquisition of insured status
– Insurance details covering employee health and retirement insurance Finally, before starting a business in Japan, we remind you to connect with us for up-to-date information on export, advice, and guidance for entrepreneurs and manufacturer’s agents.