Setting up a business in Japan may appear as an overly complicated thing to do, especially if you haven’t done it before. Fortunately, Japan has done a lot in the past decade to streamline this process and structurize it. With a bit of help, you can set up a business in the land of the rising sun without breaking a sweat.
There are myriads of sources online. Juggling them to extract all the crucial pieces of information is time-consuming, if not confusing. Missing out just one important step can render your efforts futile. This is why we are here. Here is the ultimate guide on setting up a business in Japan.
Foreign nationals are not allowed to start setting up a business in Japan just like that. To start a business in Japan, you will have to obtain one of the required visas.
The procedure of getting a visa is quite simple. For business purposes, you will need to obtain either a 4-Months Business Manager Visa or Start-up VIsa. Or you can consider an Investor visa.
Japan introduced the 4-Month Business Manager Visa 4 years ago. To get the visa, you will have to prove that you are in the process of starting a company in Japan. Once Japan grants you the visa, you can begin setting up your business the moment you arrive in Japan.
Make sure to submit all necessary documents in advance so that you can get your 4-Month Manager Visa in time. This visa puts you in a position to obtain a residence card, open a bank account in Japan, and register your business.
Once you set up your business in Japan, you can apply for an extension of stay, which is 1 year.
A Start-up visa is a remarkable initiative of Japan’s government to bring in foreign entrepreneurs in Japan. This visa is valid for half a year. Note that it is not available in all the cities. Currently, it is available in Tokyo, Hiroshima and Aichi Prefectures, Sendai City, Fukuoka City, Imabari City, and Niigata City.
The list of required documents for applying for a Start-up Visa is not long. Note that you will have to submit your business plan in Japanese to get a recommendation letter from the local government office.
Once you get all the documents ready, you can apply at the immigration bureau. A start-up visa can be extended for another 6 months. This visa allows you to do the same things as 4-Month Business Manager Visa does: obtain a residence card, open a bank account in Japan, and register your business.
The investor visa is another option for foreign investors looking for opportunities to start a business in Japan. Investor visas can be granted for 1, 3, or 5 years. The duration of the granted period and whether you are able to prolong it depend on the profitability of your business and other relevant business performance metrics.
You don’t have to be in Japan to apply for an investor visa. As long as you have the required documents, you can apply from the country you reside in. The procedure is quite simple:
Step 1 – Establish your company
Step 2 – Apply for an investor visa Certificate of Eligibility (COE) at the immigration office. If you live outside of Japan, you can put things in motion with the help of a certified immigrant official. This process takes approximately 2 to 3 months.
Step 3 – Once the Certificate of Eligibility is ready, you will have to pick it up from the immigration office. Now you can exchange it for an investor status or residence (SOR) at the Embassy or Consulate of Japan. It will take you an additional 2 weeks to get the SOR.
If you don’t have the means or opportunity to collaborate and get help from certified professionals in Japan, you will have to do all this by yourself. This is why many investors go with a 4-month visa and then submit the application for an investor visa once they have settled all their business affairs.
The document requirements for an investor visa vary depending on the type of company you are planning to run and your financial situation. Here is the list of the documents you might need to qualify for the investor visa:
Since we mentioned opening a bank account in Japan, let’s quickly look at the banking opportunities you have in this country.
Choosing a bank and opening an account can appear challenging to foreigners due to the language barrier and complex bureaucratic procedures, especially to those planning to start a business. Fortunately, there are foreigner-friendly banks in Japan that are easy to register accounts with.
These banks streamline account registration process and make it convenient for foreigners:
Sumitomo Mitsui Banking Corporation
This bank was founded in 1876, making it one of the oldest banks in Japan. It has a great front desk for foreigners. SMBC offers plenty of banking services specifically tailored to meet the needs of foreign investors and entrepreneurs. Most importantly, all these services are provided in English.
Shinsei Bank
Shinsei Bank is the go-to place for many foreign investors planning to start a business in Japan. SB did an excellent job when it comes to online banking.
The bank provides services in English and all the services are available online. This is very convenient since you don’t have to visit the bank at any point to open the account. You can do everything from the convenience of your home.
The cash card you will receive doesn’t work on the ATMs. On the other hand, SB has a very wide network. You will be able to withdraw your money by visiting any of the following banks Seven Bank, ENet, JR East Japan Railway, and other.
Seven Bank
Seven Bank is another great bank for entrepreneurs with business plans in Japan. It also offers services in English. Seven Bank is similar to Shinsei Bank in terms of online banking.
You will find their website particularly useful, as it features all the guides on the bank account registration process in English. With the SB’s cash card, you will be able to withdraw money from ATMs in 7-Eleven stores, shopping centers, and airports.
Japan Post Bank
While Japan Post bank is predominantly a postal service, the company also provides bank services. This is a good option because you can withdraw money across Japan.
There is no withdrawal limit with Japan Post Bank and no international fees. Once you register an account at JPB, you will receive a cash card and passbook.
You will have to get the required documents to register an account in any of the Japanese banks. The requirements may vary from bank to bank, but these are the most common ones:
If you plan on sending money to your home country, you should look for banks that offer a remittance function. With this service, you will be able to send money outside of Japan even if you are a foreigner.
To use this service you are required to present:
