A Guide about share capital for private limited companies in Japan.

Japanese business start-up consultant

The world economy has been hit by the worst economic contraction in its modern history as the coronavirus closed businesses and dampened consumer spending. However, The Japanese style is still a popular culture, and I found a new word, “Japandi” on Cambridge Words website. Some international investors keep saying to me that Japan still has a growing business potential in terms of the safety and security of the country and the power of private consumption.

Share capital is not linked to how much the company is worth, but investors must pay the company the full amount of their share capital. Because of trading activities, Japanese Yen is the most popular choice, but payment can be made in foreign currency. The exchange rate should be considered in case of foreign currency remittance, and the exchange rate shall be calculated on the payment day.

The legal affairs bureau will look over to validate the information contained in the Statement of Capital for each company registration.

A private limited company needs at least one shareholder for KK or member for GK, who can be a director.

I hope the information is useful.
I will update every Monday.
For more information

https://lawhelp4u.com/english/legal-advice-for-business-in-japan/
Japanese business consultant
Shihoshoshi Lawyer
(Judicial Scrivener)

Akiko HORI

Private limited companies

Japanese business start-up consultant

A private limited company can be a small or large business.

Under the current company law, one person can set up a private limited company. A private limited company has limited liability and these types of business have ‘株式会社(KK)’ or ‘合同会社(GK)’ before or after their business name in Japan. Only the trade name of a corporation can be registered with English alphabet, numbers and some symbols, such as “&(ampersand)”, “,(comma)”, “.(full stop)” and the like.

Any type of business can set up as a private limited company. ‘株式会社(KK)’ is likely to used for larger businesses, and ‘合同会社(GK)’ is for example, a(n) instructor, hairdresser, photographer, etc.

There is no such a big difference from both legal entities, but historically, ‘株式会社(KK)’ is a traditional form of a private limited company. On the other hand, ‘合同会社(GK)’ was introduced in 2016. The biggest difference is registration tax and notary public fee. Registration tax for ‘株式会社(KK)’ is 150,000 JPYen, and one for ‘合同会社(GK)’ is 60,000 JPYen. In addition, articles of incorporation of ‘株式会社(KK)’ should be notarised, which costs about 52,000 JPYen.

Private limited companies pay corporation tax. Corporation tax is a tax on the profits of a business. There is a lot of paperwork to found a private limited company, because the business has to register with the Legal Affairs Bureau, and file annual financial reports to the Tax Bureau.

I hope the information is useful.

I will update every Monday.

For more information

Japanese business consultant

Shihoshoshi Lawyer(Judicial Scrivener)

Akiko HORI

https://lawhelp4u.com/english/legal-advice-for-business-in-japan/

A business start-up as a sole trader

Japanese business start-up consultant

I used to work as an adviser at Tokyo One-Stop Business Establishment Center. Many foreign nationals came to seek legal advice on how to set up a company in Japan, especially in Tokyo.

 

Setting up a company is an option to do business, but working as a sole trader is another option. A sole trader is a business that is owned and run by one person. There is only one owner, but they may have employees who work for them. Sole traders are usually start-ups or small businesses. Sole traders have unlimited liability and the owner is personally responsible for the debts of the business. A sole trader pays income tax on their earnings.

 

A sole trader calculates the amount of income earned during the year from 1st January to 31st December of each year and the amount of income tax, and must file a tax application form at a tax office between 16th February and 15th March of the following year.

 

It has the risk of unlimited liability and there is a high level of responsibility for the business owner, but it is quick and easy to set up and has low set-up costs.

I hope the information is useful.

I will update every Monday.

For more information

Japanese business consultant

Shihoshoshi Lawyer

(Judicial Scrivener)

Akiko HORI

https://lawhelp4u.com/english/legal-advice-for-business-in-japan/

 

 

What are the benefits when a Shihoshoshi Lawyer undertakes the procedure of forming the company?

There are many benefits in asking a Shihoshoshi Lawyer to help to set up a company.

– To create the Articles of Incorporation smoothly.
– To act in the authentication of Articles of Incorporation and establishing the registration of a company.
– To advise about the proper implementation of the chosen investment method.
– To do a legal check on an agreement of an office rental and various business agreements because of their extensive legal knowledge.
– To introduce an appropriate professional to advise about the acquisition of visa. 1)
– To introduce an appropriate professional to advise about various tax office and social insurance office authorizations.

When you delegate to a Shihoshoshi Lawyer by a comprehensive Power of Attorney, that Shihoshoshi Lawyer can act for you in all legal procedures, such as an contract to rent an office, to acquire a visa and in various submissions about setting up a company to administrative agencies.

When you start a business in Japan, a Shihoshoshi Lawyer, the national qualified professional will support you fully.

For more information
Shihoshoshi Lawyer Akiko HORI

Legal Advice for Business in Japan

How do we conduct the procedures for setting up a company?

You need to prepare many formal documents and fill in application forms, such as an authenticated Articles of Incorporation, authenticated signatures of an investor and a director and a certification of the investment.

Business in Japan is conducted in Japanese, rarely in English. As the saying “when in Rome, do as the Romans do.”, you will not be able to proceed with negotiations with various institutions smoothly if you don’t follow Japanese business rules.

Even Japanese people struggle with the procedures to set up a company on their own and that there is a national professional qualified to set up a company in Japan, which is the Shihoshoshi Lawyer.

For more information
Shihoshoshi Lawyer Akiko HORI

Legal Advice for Business in Japan

How long does it take to set up a company?

After authentication of the Articles of Incorporation and investment performance, you can submit the application (Establishment Registration) to the Legal Affairs Bureau.

After submission, the examination at the Legal Affairs Bureau will generally end a week or two weeks later.

When the application process is completed, a Registration Certificate for the company will be issued. Anyone can ask for the certificate, and the certificate that proves the existence of a company in Japan ensures the reliability of the transaction.

When you start a business with a company, you can investigate the company by inspecting the certificate at the Legal Affairs Bureau.

For more information
Shihoshoshi Lawyer Akiko HORI

Legal Advice for Business in Japan

How much is the minimum capital to set up a company in Japan?

You are able to set up the company a minimum of one yen as a capital, but would you want to do business with a company whose capital is one yen?

Its credibility is doubtful, and it might soon be insolvent so that it is recommended that you have sufficient capital.

To do business in Japan, you should be prepared to invest about 5 million yen capital. This investment can include not only cash but also property, such as real estate, cars and credit.