To start business in Japan
Company Formation
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When a foreignfirm engages in business activity in Japan it is necessary to establish a branch or a subsidiary company (Japanese corporation). Theset upofa branch is the simplest method fora foreign firm to set up the base of the business operation.The business can be started after deciding on the location and the representative & the registration can be done. The branch is meant to be set up to do business, which the parent company is doing and is not supposed to engage in activities unrelated to parent company business. According to law branch is not a legal entity in itself but it is treated as a part of foreign company. Finally, the responsibility of debts and credits generally generated from the activity of the branch will belong directly to the foreign firm. After that an bankaccount can be set up in the name of the branch and property and office space can be rented.
A A subsidiary company ( Japanese corporationj
According to company law in Japan When a foreign company wants to setup business it is necessary to establish a limited liability co. or Joint stock corporation. Members with unlimited liability are jointly and severally liable without limitation to the company` creditors, while the liability of members of limited liability to the company creditors is limited to their contributions of capital. So they have to choose. After deciding about which type of company is to be setup according to legal procedures company registration & establishment can be done. After that a subsidiary company has a legal entity (duties & liabilities) of its own separated from its parent company.
After establishment of a company, company` s working areas and investment with respect to Japan, capital, participation method etc. is to be decided.
General Flow of setting up company
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General Flow of setting up branch
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Business organization acting as an agent
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General flow of setting up a subsidiary company (Japanese corporation)
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Business organization acting as an agent
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FLOW |
1. Arrangement of branch registration matter |
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1. Deciding establishment outline of a Public company. |
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2. A similar trade name is investigated in the Regional Legal Affairs Bureau |
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2. Investigation of similar trade name in regional legal affairs bureau. |
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3. Establishment of branch office (Any possible day & date can be selected for the branch installation day). |
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3. Preparation of the articles of incorporationB |
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4. Making of affidavit concerning set up of branch. |
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4. Preparation of registration certificate as well as affidavit concerning articles of incorporation & representative signature etc. of the parent company. (The attestation of the affidavit by the notary of the own country is necessary). |
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5. Attestation of affidavit according to consul in embassy of Japan.
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5. Attestation of articles@of incorporation according to public notary of Japan |
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6. Branch Establishment@& registration application to the Legal Affairs Bureau. |
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6. Prepation for the @capital@stock,@payment,@deposits to the bank. |
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7. Acquisition of registration matter certificate and company stamp registration
(About two weeks after the registration application). |
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V. Filling application of public companies registration of formation to the regional legal affairs bureau . |
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8. Opening of branch name account in the bank.
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W. Acquisition of registration matter certificate and company stamp registration
(About two weeks after the registration application). |
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X. Opening of Company name account in the bank. |
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Necessary Period |
For about one month after deciding the branch registration matter. |
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For about 1 to 1.5 month after deciding the company establishment
Outline |
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Notification of Authorities (necessary immediately after start up)
Prior notification |
Official documents |
Deadline for Notification |
Note |
Taxation Authorities |
Notification of Incorporation of Company |
Within 2 Months from the date of incorporation |
For all business persons |
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| Notification of Establishment of an Office Paying Salaries |
Within 1 Month from the opening of the office |
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| Administrative Divisions of Taxation Authorities in Japan |
Notification of Business Commencement Etc. |
Within 15 days to 1 Month after Commencement of Business Activities |
For all business persons |
| Local and Prefecture Government in charge of Tax Matters |
Same As Administrative Divisions of Taxation Authorities |
Report of Commencement of Business Submitted to the Tokyo Municipal Taxation Office In Ward 23 |
For all business persons |
| Social Insurance office |
Notification of Employees` New Coverage Under Health Insurance, Current Circumstances of New Applicable Business Office, Employees` Pension Insurance, Health Insurance Dependents (if any dependents change). |
In case of Applying for the Office Place Do it Promptly |
When Hiring Employees |
| Labor Standards Inspection Office |
Working Regulations |
Performed Readily or Promptly |
If ten or more Employees are working |
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Notification of the Establishment of a Labor Insurance Relationship |
Within Ten days from Commencement of Employment |
At the time of Commencement of employment |
| Public Employment Security Office |
Notification of Creation of Business Establishment Covered by Employment Insurance
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Within 10 days of the Workers` Engagement |
]At the time of Workerfs engagement |

Types of Social Insurance
Medical Insurance
Insured person gets Medical care when needed. One part of the Medical Expenses is borne by the Insurer |
Health Insurance |
1. Issued to Employees of Big Enterprises. Insurance made by Undertaking group is managed by National Federal of Health Insurance society.
Issued to small and medium Enterprises. Managed by social Insurance Agency |
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National Health Insurance
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Local prefecture and Municipal corporation with the help of local industries conduct this. Insurance premium (Insurance tax.) is becoming very expensive because of a higher percentage of older people. National Health insurance Premium depends on the income of the insured.
EInsurance premium differs according to the place & municipality , but a rough estimate is 5 to 10%. |
Pension Insurance |
National Pension |
National Pension System is based on the articles of national pension law, which aims to help residents in old age, accident & death ensure healthy & fulfilling life for them |
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Employees Pension |
Effective from Sep. 2006-
An average insured person (employee) has to contribute 14.642% of the revenues and from this half is paid by the insurer (employer). |
Employment Insurance |
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As a rule, Employment Insurance applies to all workers .In case of part time worker` s however, their regular working hours per week must be at least 20 hours & expected to be employed for at least one year. |
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Insurance premium is equally shared by employee & the employer. |
Workers` Accident Compensation Insurance |
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Benefits are provided for Injury, illness, OR death of workers due to occupational reasons or due an accident during commuting. |
Child Care Benefits
There are two benefits paid, one during the leave period (Maternity leave basic pay) and the e other at the time of returning to work.
The benefits are paid to the insured person who is taking maternity leave to take care of a child less than 1 year old (1.5 years old if extension is granted). The following conditions apply.
Forgetting something that belongs to you
qQrA foreigner enrolled in National Health Insurance in Japan goes back to his/her home country. Is there any way for him/her to get money back?
qAnswerr@When a foreign resident who paid premium for 6 months or longer for national pension or employees` pension leaves Japan a foreigner can get a lump sum pension refund. The amount of refund varies depending on how long the premiums were paid.
Inquire at the regional social insurance bureau for further information such as papers required for the refund. You can apply for the refund with in 2 years after you leave Japan. Send the papers required for the refund to the social insurance operation centre in Tokyo, if you apply from abroad.
Insurance premium paid period |
Lump sum payment (yen) |
6 to 12 months |
SP,TWO |
12 to 18 months |
WR,PUO |
18 to 24 months |
PQS,VSO |
24 to 30 months |
PUU,RQO |
30 to 36 months |
QOV,XOO |
More than 36 months |
QSX,SWO |
qQrA foreigner enrolled in Employee Health Insurance in Japan goes back to his/her home country. Is there any way for him/her to get money back.?
qArWhen a foreign resident who paid premium for 6 months or longer for national pension or employees` pension leaves Japan, he or she can get a Withdrawal of lump sum pension refund. The amount of refund varies depending on how long the premiums were paid.
You cannot apply for this refund (called the "Lump-Sum Withdrawal Payment") until after you leave Japan. The money is also subject to Japanese income tax (20%), but you may not know that you can also get this back.
Although the forms can be obtained while in Japan, they must be filed from overseas after you have left. To be eligible to apply for the refund, you must meet the following conditions:
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You do not possess Japanese citizenship
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You have paid Employees' Pension Insurance premiums for six months or more
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You do not have a place of residence in Japan
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You never have qualified for pension benefits (including Disability Allowance)
In order to claim the benefit, you must attach the following documents with your application:
- Pension book
- Passport photocopies
- Bank Information
qQrAt the time of unemployment if the person has membership of employment insurance plan, can he/she get the unemployment allowance?
qArWhen people who have been enrolled in employment insurance quit their job they should go to the Public Employment Security Office ("Hello Work") to apply for another job, search and then carry out the procedures for receiving unemployment benefit.B
In order to receive an unemployment benefit, you must fulfill the following conditions:
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You must have paid employment insurance for at least a full six months and received wages for at least 14 days work per month during a certain period prior to the day on which you quit your job. |
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You must have the will and ability to work (in other words, you must be in a state of "unemployment"). |
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You must have applied to look for work at the Public Employment Security Office. |
Flowchart of procedures for establishment of operations in Japan and acquisition of visa/status of residence
The following diagram depicts the sequence of procedures that are typically completed in order to establish and register the establishment of a new operation in Japan (subsidiary company or branch office) represented by a foreign national, along with the procedures for acquisition of a visa and status of residence.
Entry to Japan on "Temporary visitor" visa |
Japan |
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Research and preparations for establishment of operations in Japan (subsidiary company or branch office) |
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Yes |
Registration of establishment of operation in Japan (subsidiary company or branch office) at regional legal affairs bureau |
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Yes |
Application for Certificate of Eligibility by applicant or proxy at Immigration Bureau in Japan. |
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Yes |
Certificate of Eligibility issued and sent to applicant or proxy in Japan by Immigration Bureau in Japan and Application for working visa at Japanese diplomatic mission abroad (presentation of certificate of eligibility required) |
Overseas |
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Entry to Japan on working visa (Certificate of Eligibility submitted |
Japan |
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Alien registration within 90 days at local municipal office |
Japan |
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The countries listed on the website of the Ministry of Foreign Affairs of Japan have concluded reciprocal visa exemption arrangements with Japan, and nationals of these countries wishing to engage in activities that fall within the scope of a temporary visitor are not required to receive a visa to enter Japan. However, these visa exemption arrangements will naturally not apply to foreign nationals intending to work or engage in other activities for compensation.
>>List of countries that have VISA exemption arrangements with Japan (the Ministry of Foreign Affairs of Japan)
Family members accompanying working foreign nationals
Spouses and children dependent on working foreign nationals are granted a "Dependent" status of residence and are permitted to engage in the day-to-day activities of a dependent spouse or child of a working foreign national residing in Japan. Activities such as attendance at school fall within the scope of activities of a "Dependent," but work for compensation is in principle prohibited; part-time work (generally no more than 28 hours per week) is possible if permission to engage in activities other than that permitted under the status of residence previously granted is received.
Applications for Certificates of Eligibility and subsequent visa for "Dependents" may be submitted at the same time as those applications for the working foreign national, but applications for "Dependents" may also be submitted after the working foreign national has first received status of residence to work in Japan.
Areas where we can help
Arrangement of lease articles |
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Market research |
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Establishing a company |
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VISA |
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Grants & approvals |
- Dispatch
- Introduction
- Recycle etc.
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According to company notification & authorization is necessary |
Accounting |
Monthly accounting receipts |
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Preparation of written contract |
- Written documents of employment contract
- Providing solutions to handle the problems like when a foreigner demands outrageous overtime wages at the time of resigning
- Contract of delegation
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Family Service |
Translation, Introduction of all sorts of business & every type of documentary advice.
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Not able to understand the documents given by school?
Coming event is organized for which purpose? |
Legal advice |
Child birth |
- If you have health Insurance you can get lump sum amount for delivery.
- Submit application for Visa with in 30 days after the birth
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Marriage |
What paperwork do I need? Is there any change of name etc.
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Divorce |
Preparation of accurate divorce agreement can protect a person in distant future |
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Succession |
For example what to do if a foreigner inherits the property in Japan etc. |

Annual Events
Month |
Events |
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April |
Enrollment ceremony in kindergarten
Meeting ceremony |
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May |
Visiting & having lunch with children |
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June |
Internal medicine examination
Dental checkup
Sunday inspection |
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July |
Opening of swimming pool
Tanabata Festival
Secured rearing |
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August |
Summer season rearing
Puppet show
Evening assembly |
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September |
Moon viewing assembly
Athletic meet |
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October |
Outing
Excavate & Insect catching |
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November |
Origami festival
Picking up of fallen leaves |
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December |
Shopping
Preparation of rice cakes
Christmas meeting |
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January |
Inspection of nursing |
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February |
Sechibun
Presentation for livelihood
Tea ceremony |
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March |
Doll` s festival
Farewell party |
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Every month |
Birthday party
Health checkup
Disaster drill |
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Extracurricular activities (Paid) |
Picture molding classes
Gymnastics classes |
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