How to Set up Business in Japan Video Series

Steps of Setting Up Business

Flowchart

This flowchart shows necessary steps for foreign companies to set up business in Japan.In the section of “Setting up a business”, the following steps are shown to complete before starting business operations: 1) Research, 2) Company registration, 3) Tax notices, and 4) Opening a bank account.In the section of “Obtaining visas”, the following steps are shown to take for obtaining visas before starting business operations: 1) Appointing a representative in Japan, 2) Company registration, and 3) Certificate of eligibility/Visa application.In the section of “Setting up an office”, the following steps are shown to take for setting up an office before starting business operations: 1) Temporary office rental, 2) Setting up a permanent office, and 3) Company registration.In the section of “Personnel-related matters”, the following steps are shown to take for personnel-related matters before starting business operations: 1) Hiring staff, 2) Company registration, and 3) Social insurance notices.In the section of “Setting up a place of residence”, the following steps are shown to take for setting up a place of residence before starting business operations; 1) Staying at hotels and others, and 2) Setting up a permanent housing. Setting up a company or local branch Obtaining visas Setting up an office Personnel-related affairs Setting up a place to live

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Laws and Regulations on Setting Up Business in Japan

JETRO provides basic information about the laws and various procedures related to setting up a business in Japan (incorporating business/visas and status of residence/taxes in Japan/human resource management/trademark and design protection systems).
Please click here for documents businesses are required to submit to authorities.
Information about trademarks and design protection matters in setting up business in Japan is available on the Japan Patent Office websiteExternal site: a new window will open.
You can also find professionals to assist at Experts Finder.

Laws & Regulations on Setting Up Business in Japan
(as of November 2021)

Based on legal revision during the 2021 fiscal year, all of the items of Section1 - 4 have been updated.

Section1: Incorporating Your Business

Definitions and comparisons of various business operations; procedures and guidelines for establishing/registering each of these distinct operations in Japan.

  1. 1.1

    Types of operation in Japan

  2. 1.2

    Comparison of types of business operation

  3. 1.3

    Procedures for registering establishment

  4. 1.4

    Information listed in articles of incorporation of a company

  5. 1.5

    Certificate on registered company information and company seal impression certificate

  6. 1.6

    Notifications required after registration

  7. 1.7

    Closure of branch offices or subsidiary companies

(Reference)

Section2: Visas and Status of Residence

Entry procedures into Japan, conditions and provisions that apply to various types of visas and working/residence statuses; the alien registration process; details concerning family members accompanying foreign nationals.

  1. 2.1

    Entry procedures

  2. 2.2

    Relation between visa and status of residence

  3. 2.3

    Process from application of Certificate of Eligibility to acquisition of visa

  4. 2.4

    Types of working statuses

  5. 2.5

    Temporary visitor visa and status

  6. 2.6

    Reciprocal visa exemptions for temporary visitor

  7. 2.7

    Residence card and residence management system

  8. 2.8

    Re-entry permission

  9. 2.9

    Family members accompanying working foreign nationals

  10. 2.10

    Extension of period of stay and change of status of residence

  11. 2.11

    Points-based preferential immigration treatment for highly - skilled foreign professionals

  12. 2.12

    Promoting acceptance of foreign entrepreneurs

(Reference)

Section3: Taxes in Japan

  1. 3.1

    Overview of Japanese corporate tax system for investment in Japan

  2. 3.2

    Domestic-sourced income

  3. 3.3

    Overview of corporate income taxes (corporate tax, corporate inhabitant tax, enterprise tax)

  4. 3.4

    Overview of withholding income tax

  5. 3.5

    Tax treaties

  6. 3.6

    Overview of consumption tax

  7. 3.7

    Overview of individual tax system

  8. 3.8

    Other principal taxes

  9. 3.9

    Other principal corporate taxation regarding international transactions

  10. 3.10

    Handling of corporate, local, and consumption taxes depending on capital amount

(Reference)

Section4: Human Resource Management

  1. 4.1

    Application of laws

  2. 4.2

    Recruitment

  3. 4.3

    Labor contracts

  4. 4.4

    Wages

  5. 4.5

    Legislation on working hours, breaks and days off

  6. 4.6

    Rules of Employment

  7. 4.7

    Safety and hygiene

  8. 4.8

    Resignation and dismissal

  9. 4.9

    Japan's social security system

(Reference)

(Flowchart)

Documents required to submit to authorities

JETRO provides list of documents required to submit to authorities related to setting up a business in Japan (incorporating business/visas and status of residence/taxes in Japan/human resource).

Writer :

SECTION 1.

SAKIKO AKIYAMA, Judicial Scrivener, INTRIM Scrivener Office

SECTION 2.

TETSUYA IIDA,Administrative Scrivener, In Control Legal Support Services

SECTION 3.

NAOKO SATO, Tax accountant, Sato & Akasaki Accounting Office

SECTION 4.

SATOSHI NAGAURA, Labor and Social Security Attorney, Nagaura Personnel Management Office

Editor / Publisher :

Invest Japan Department, Japan External Trade Organization (JETRO)

Laws and Regulations on Setting Up Business in Japan Pamphlet

JETRO provides a pamphlet (PDF) outlining basic information about the laws and various procedures related to setting up a business in Japan. For foreign companies and foreign-affiliated companies, please contact us from "Request Form".

See the most frequently asked questions and answers about setting up business in Japan.

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