Successful Case Study of Japan Company Setup

A leading technology company based in Europe has achieved significant success in its home market but now seeks to expand its operations into Japan. With its innovative products and cutting-edge solutions, the company sees Japan as a lucrative market ripe with opportunities. However, entering the Japanese market poses unique challenges, including cultural differences, regulatory complexities, and fierce competition from local and international players. To navigate these challenges and ensure a successful expansion, the company sought assistance from Tetra Consultants to register company in Japan. 

Initially, we evaluated the business structure options for the company in Japan, considering both Godo Kaisha and Kabushiki Kaisha. We recommended opting for a Kabushiki Kaisha due to the absence of a local director requirement. The client agreed with our recommendation, and we proceeded accordingly. They are limited liability companies, providing shareholders with limited liability protection. These structures are well-established and widely recognized in Japan, making them suitable for our expansion. 

After deciding on the business structure, we ensured the availability of the desired company name with the Legal Affairs Bureau. Simultaneously, we prepared and provided legal drafting services for all necessary documents, including drafting the articles of incorporation. These articles detailed essential information such as the company name, business activities, registered address, capital, and more. Additionally, we offered name reservation services and facilitated international trademark registration to protect the company’s brand name. This comprehensive approach ensured that all legal and regulatory requirements were met, laying a solid foundation for the company’s successful entry into the Japanese market. 

After this, Tetra Consultants assisted in notarizing the documents, including the Articles of Association (AoA). We ensured compliance with all the requirements for establishing a Kabushiki Kaisha, which included appointing at least one representative director without residency requirements. Tetra Consultants guided our clients in structuring the Godo Kaisha to provide limited liability for members, allowing them to freely determine each member’s voting rights and profit participation. We also facilitated the incorporation process, whether by one or multiple members, and ensured the subsidiary company had a local physical address (not a PO Box) in Japan.  

After complying with all requirements and notarizing the necessary documents, Tetra Consultants assisted in obtaining the company seal. We then proceeded to submit the notarized articles of incorporation, proof of capital deposit, and the registered seal to the Registry Office. This step was crucial for officially registering the company in Japan. By meticulously handling these processes, Tetra Consultants ensured smooth and efficient registration, allowing our clients to focus on their business operations with confidence that all legal and procedural aspects were thoroughly managed. 

After completing the company registration within 3 weeks, Tetra Consultants advised our clients to temporarily appoint a Japanese resident director through our nominee director service in Japan it become very easy for our clients to establish presence in Japan. This step simplifies the process of depositing the starting capital and subsequently opening the bank account in Mizuho Bank. Tetra Consultants collaborates with several reputable banks to assist in opening local or international corporate bank accounts. 

When our experts proceeded for opening the bank account in Mizuho Bank, it required our clients to attend four face-to-face interviews, conducted in Japanese. Since the client cannot speak Japanese, Tetra Consultants provided a local representative to attend the meetings on their behalf. This arrangement allowed the client to avoid traveling to Japan and eliminated the need for a translator. 

The corporate bank account opening takes approximately 4 weeks, along which our clients receive a 13-digit Japan company business registration number and a certificate of company registration. Following this, the company and director can register their seals. Additionally, our team of experts assists in preparing annual returns and financial accounting according to the four accepted standards for fiscal year reporting, ensuring these are presented at the shareholders’ meeting each fiscal year. 

Tetra Consultants assisted clients in utilizing their Japan company tax registration number to register and notify the National Tax Agency about the establishment of an office that pays salaries. We also ensured compliance with municipal authorities for local inhabitants and enterprise tax registration. This tax registration number is the same as the business registration number. 

Tetra Consultants provided guidance on understanding the effective tax rate, which is a minimum of 30% for Japanese corporations with share capital above JPY100 million, factoring in both national corporate tax and local inhabitant tax. Additionally, we offered comprehensive support for Japanese accounting and tax obligations, ensuring our clients remained compliant with all financial regulations. 

With Tetra Consultants’ expertise, the seamless establishment of the subsidiary company in Japan was realized. From handling legal intricacies to ensuring tax adherence, Tetra Consultants offered invaluable support throughout. With company registration accomplished within 3 weeks and bank account opening within 4 weeks, the Japan company was fully operational and primed for business within 7 weeks of engaging Tetra Consultants, positioning it for dynamic growth and success in the Japanese market. 

Contact us to know more about how you can register company in Japan and our team will revert back in 24 hours.