Katheryn Gronauer

The Consequences of Not Submitting Your Initial Tax Filings in Japan On-time

Tax Filings in Japan
weConnect Resources

The Consequences of Not Submitting Your Initial Tax Filings in Japan On-time

Get started with initial tax filings in Japan the right way

Let’s say you’re building a home for the first time. You hire a builder to lay the foundation, and they pour the cement to create a solid base. Nice.

But once the cement dries, you discover that you have a problem: you hadn’t figured out where to put the toilet! You realize you should have consulted with a plumber to figure out where the pipes needed to go, but it’s too late…you’ve got solid concrete. So now, you’ve got this state-of-the-art home…plus an outhouse. 

Starting a business in Japan can come with similar consequences if you’re not careful. If you don’t “dot your i’s and cross your t’s” before building the company, you might wind up with an unfixable issue later that you have to live with day by day.

Only in this case, a mistake like not submitting your initial tax filings in Japan on-time can cost you millions. Seriously.

Your status depends on your ability to submit on-time

You need to submit your initial tax filings in Japan within 3 months of establishing your business, or before your fiscal year-end, whichever comes first. 

When you submit your tax filings in Japan on time, you will receive “Blue Form Status” which shows that your company is in good standing. When you do not submit on time, you’ll receive “White Form Status”, which means that you’re not in good standing. 

In other words, this simple mistake of not meeting the deadline can label you as a red flag in the eyes of the Japanese tax office. 

Unfortunately, this happens to a lot of businesses, and the reason is simple: they weren’t aware that there was a deadline. Most companies expect their incorporation professional to advise them on these crucial filings when setting up the business. But incorporation professionals are not tax professionals, in the same way that a builder is not a plumber.

The consequence? You can’t carry your losses forward. 

If you miss the deadline and end up with “White Form Status”, you can’t carry losses forward nor enjoy various tax benefits.

The benefit of being able to carry losses forward is that if you make a loss in your first year (which most start-ups typically do), you can apply your losses to your future profit which will minimize your tax. 

But in Japan, if you have “White Form Status”, you can’t do that. And if you’re investing heavily in Japan, you definitely want to be able to carry forward losses.

Here’s an example:

Company A got the Blue Form. Company B got the White Form. 

Both spent a million dollars in year 1.  Both made a million dollars in year 2. 

Company A paid no tax. Company B paid lots of tax.

Be Company A. 

So what exactly do you need to do? Here are the 7 tax filings in Japan that need to be completed within 3 months of establishing your business:

  1. Application for Blue Form Status
  2. Withholding income tax submission time special approval
  3. Notification of establishment to the national tax office
  4. Notification of establishment to the local tax office
  5. Application for extension of tax filing due dates to the national tax office
  6. Application for extension of tax filing due dates to the local tax office
  7. Establishment of salary paying office to the local tax office

Need someone to walk you through this?

We’re happy to help explain what these items are and ensure the most strategic filings with the tax offices are submitted on time! Feel free to contact us, here.

10 Facts about Bank Accounts in Japan that Can Derail You

Bank Account in Japan
weConnect Resources

10 Facts about Bank Accounts in Japan that Can Derail You

Getting a corporate bank account in Japan is more complex than you’d think

Imagine this: you’re on a fantastic first date. The chemistry’s there. You’re laughing so hard at each other’s jokes that your abs feel sore. 

Time flies by and before you know it, it’s getting late. You say goodnight and let your eyes linger on each other as you separate. And you can’t wipe the grin off of your face on your way home as you get excited about seeing each other again. 

But then…nothing happens. No texts…no calls…

You’ve been ghosted

And the worst part? You don’t even know why. 

(Haven’t experienced this? We’re impressed.)

Believe it or not, that’s exactly what it’s like to try and open a corporate bank account in Japan. There’s lots of wooing involved in establishing a relationship so that you can make it official. But no matter how well your introduction goes, you might get a no. And you won’t know why.

And you know what? This doesn’t just happen to foreigners in Japan. Japanese people never know if they’ll qualify for a bank account, either! 

Getting ghosted hurts, and we don’t want you to experience that.  So here are 10 facts you need to be aware of with bank accounts in Japan that can derail you:

First…do you even need a corporate bank account in Japan if you have a global banking partner? 

Yes, you do. And here’s why:

1. Some payments can only be made via a Japanese bank account

When you’re running a business in Japan, there will be some basic payments you’ll need to make that can only be made or accepted from a Japanese bank account. These payments include certain payroll, tax-related payments, internet and phone service payments, and utilities. 

These payments cannot be made by a global bank account, so you’ll need a local account to supplement your main account.

2. Some customers and vendors will only receive from or pay into a Japanese bank account

Many Japanese customers and companies are not prepared to handle international transactions. You’re bound to have some connections that have strict policies when it comes to banking and money transactions.

While you’ll need a local account to maintain the transactions we listed above, you only need to fund the local account on an as-needed basis. There’s a good chance you fall into the category of companies where having a global banking partner won’t make sense for cost and other reasons. So, you’ll absolutely need a local bank account for all your banking needs. 

Now that you know why you absolutely need a company bank account in Japan, here’s your next obstacle: can you get one?

3. Banks have a strict Know Your Customer (KYC) process

Get ready to be interviewed. Most banks are selective of their customers due to anti-money laundering requirements. You’ll need to be prepared to answer a lot of questions about your business, and be aware of the possibility that you might be rejected. 

Newly established companies are more likely to be rejected because they have lower credibility (especially foreign companies), which means you’re starting off at a disadvantage.  

4. You’ll need to produce a lot more information and documents to pass screening

Since banks conduct stricter assessments for new companies, you’ll need to be prepared with documents. Documents can include things like your business plan or financial statements.

5. You’ll be expected to show up in person with a seal to open your account

Banks generally require the company’s representative director to visit the bank window with a seal to open a bank account. They like to put a face to a name and this is important in establishing a solid relationship.

6. It can take up to 6 months(!) to open a bank account in Japan 

For starters, you can’t open a bank account in Japan until you’ve officially established your entity in Japan, so you have to wait for that process to be completed.

Then, after incorporation, it can take anywhere between 3 to 9 weeks to open a bank account. And then, another 2 to 4 weeks to set up internet banking. 

The actual timeline to finish this process depends on the activities of your business, when your operations in Japan will begin, how famous your company is, where the headquarters are located and where funds sent from abroad will originate from. 

For most companies, the time lag involved with opening an account can pose a challenge if employees need to be paid soon after establishment. 

Now that you’ve got a company bank account in Japan, can you manage it?

You might assume that banking in Japan has got to be amazing; after all, it’s the land of the robots, right? 

Well…no, banking in Japan is definitely more complicated than you’d think, especially when it comes to management and transactions. 

7. Online banking interfaces in English aren’t effective and cost 6 times more

Online banking with English interfaces are hard to come by, and the ones offered by a limited number of banks in Japan are not robust. Plus, even if you have an online portal in English, you might not be able to complete forms without using the katakana alphabet. To make matters worse, bank fees for English interfaces can be six times higher than for Japanese interfaces. 

8. You need someone physically located in Japan to make timely transactions

Japan has limited banking hours which can make it challenging to complete transactions on time from abroad. Let’s say a transaction needs to be approved. If approval by the set date is missed due to time zone differences, your payment will be rejected and you’ll need to start the process over again. 

Also, you might need to physically go to the bank with your passbook and seal depending on the transaction, so you’ll need someone on the ground to make this happen.

9. You need a Japanese speaker to help you with applications and transactions

There are several reasons why you need a Japanese speaker to help you:

-You need to fill out an application in Japanese to set up your online banking service. 

-Banks call a lot. And fax(!). Some banks require a Japanese speaker to be the point of contact when it comes to discussing anything related to your account.

-To make a bank transfer in Japan, you have to have knowledge of Japanese kanji and katakana in order to confirm that your transfer is going to the correct person. Since kanji can be read in different ways, this is a challenge even for Japanese people (but they know how to research the pronunciation). 

10. You’ll need to safeguard your bank seal with someone you trust in Japan. 

Part of the application process for opening a bank account at most Japanese banks is to produce and register a seal. You’ll need to keep this seal with someone in Japan so that they can physically go to the bank for some transactions. 

Need a bank account, but worried about approval and management? Here’s how we solve these issues for you:

At weConnect, we have great relationships with the major Japanese banks which enable us to facilitate introductions and open accounts for our clients on their behalf (without them having to visit the bank in person). And until your own bank account is established, we can provide access to the weConnect trust account to pay salaries, insurance premiums, and taxes when needed.

Once we’ve finished opening your bank account, we can set up a cloud-based application to allow anyone from your company in Japan or abroad to view your Japanese bank statement online in English. The application links to your company’s Japanese bank account and pulls data from the bank in real-time. Plus, we’ll safeguard your bank seal in case a transaction needs to be made in person.

Since we have Japanese employees, we can prepare your transactions in Japanese (we’d have limited access that would enable us to do preparations, and then you can approve and release payments with your authority, at a click of a button).

Setting up and managing a bank account in Japan is riddled with surprises and challenges, even if it might seem like a straight-forward process. weConnect can help you avoid all of these issues – contact us here to discuss more about how we can help.

Incorporating in Japan: Avoid These 5 Common Pitfalls

Incorporating in Japan
weConnect Resources

Incorporating in Japan: Avoid These 5 Common Pitfalls

The decisions you make when incorporating in Japan can cost you big time (and we mean BIG)

Quick! Before you move too fast with incorporating in Japan…

When new businesses are incorporating in Japan, they often aren’t aware of the impact of how they fill out company registration forms. They typically complete the minimum information required for filing and decide to “figure out the rest, later”. 

Down the line? Problems. Obstacles. Hindrances. There’s a host of challenges that can arise based on how the forms are completed. And Japan is a country where the process of refiling is a long, drawn-out pain, so fixing the forms won’t happen quickly. Yikes.

Here’s an example: 

Let’s say you decide to register a branch. Legally, you’re not required to register an address when incorporating in Japan. So, the professionals you hire for incorporation go ahead with the filing process without the branch address. 

But then, you decide to open a bank account and find out that you can’t open one without having a registered address. You’ll have to wait for ages to amend your branch registration documents with your registered address just so you can move forward with opening a bank account!

But wait…you’d think this wouldn’t happen if you hired professionals when incorporating in Japan, right? “They should have warned me!”

Well, incorporation professionals can help you establish your business, legally. But they might not be aware of how the way you fill out the forms can affect topics outside of their specialty – like banking requirements. And it doesn’t stop there.

You need someone to help you have a holistic understanding of all aspects of your business, not just incorporation (“someone” = us!).  

Here are 5 common pitfalls we see when you’re not guided beyond incorporation, during incorporation (and these can really, really hurt, so let’s save you a ton of time and money!): 

1. Not thinking through your capital amount

When you incorporate your business in Japan, you have to set a capital amount (and the number can be anything). 

Depending on your business, you might want to set it to a number lower than 10 million JPY. This will allow you to keep Japanese consumption tax as additional revenue for a period of time. 

Here’s what happened to a client: they made 500 million JPY in their first year of business. They collected 40 million JPY in consumption tax (8% at the time). Because they had set their initial capital to above 10 million JPY, they had to pay that consumption tax to the tax office. Had they set their initial capital to below 10 million JPY, they would have been able to keep it. Ouch.

The capital amount also affects your ability to apply for visas. If you need to get your staff a visa, we recommend setting your initial capital to at least 5 million JPY. Here’s what happened to another client: they set their initial capital to 500,000 JPY.  When they went to apply for a visa for one of their employees, the application was rejected. 

Your capital amount can even affect leasing office space, contracting for phones, and working with certain vendors. So needless to say, you’ll want to think through your capital amount!

2. Not knowing what happens when you pick a Japan-based Director

Having a Japan-based Director has its benefits: the director can set up your bank account, sign visa applications, and make your business look as domestic as possible. 

But you might want to avoid appointing a Japan-based employee to be your Director. Why? Because compensation will need to be paid in fixed monthly increments in order to be a tax-deductible expense for the company. 

For example, a client appointed their lead sales employee as director of the company. The employee received quarterly bonus incentives totaling 20 million JPY over the course of the year. The entire 20 million JPY was not tax-deductible for the company, so the company had to pay an additional 7 million JPY in taxes. 

Plus, if your employee is using company housing, then only 50% of the housing amount can be recognized as tax-free compared to 90% for non-Directors.  Be careful when thinking of appointing a local Japanese as a Director!

3. Only registering one seal

When you’re incorporating in Japan, you’re required to register one company seal with the legal affairs bureau, which represents the company’s Power of Attorney. Later, you’ll also have to register a seal for the bank and social insurance offices. But by only having one seal, you can’t segregate duties between legal, banking, and HR functions. 

One of our clients only had one seal. Each time a contract needed to be stamped, the documents had to be sent to the one person who had the seal. Because the seal was also registered with the bank, the person with the seal went rogue and accessed company accounts without permission and the company lost millions.

4. Getting a banned address (oops!)

It’s pretty common nowadays for new businesses to use a virtual address in the registration process. But what you might not know is that many addresses like these are banned by Japanese banks. Banks won’t reveal which addresses are banned, nor will they tell you why you’ve been rejected, so you won’t know that your address was the culprit! 

We had a client that got rejection after rejection from multiple banks. When they started working with us, we told them to change their address. Problem solved.

5. Registering a Board of Directors when you don’t really need one

Most people think that it’s required to have a Board of Directors when you’re incorporating in Japan. But it’s actually not needed. By registering a Board of Directors, you’ll be required to draft quarterly Board of Directors meeting minutes and file an annual audit report. If you don’t have a business purpose for a Board of Directors, then you can save yourself time and energy by not registering this section. 

Want to avoid any kind of mistake?

One of the easiest ways you can avoid any kind of mistake is to have one provider like us. We’ll help walk you through a 360-degree view of your business so that your company gets registered the right way. 

Plus, we can also help with other aspects of your business set up, like visas, taxes, seal and address registration so you don’t have to look for additional help. Feel free to contact us here to learn more!

How to Streamline Your Year-End Tax Adjustments (Nenmatsu Chosei) in Japan

Year-End Tax Adjustments
weConnect Resources

How to Streamline Your Year-End Tax Adjustments (Nenmatsu Chosei) in Japan

Save yourself time and headaches during the year-end tax adjustment period!

Let’s start with a story about Ami, a payroll specialist in Japan. 

One day, Ami made a mistake.

She was double-checking her colleague’s work on year-end tax adjustments and accidentally sent the data to the wrong client. Needless to say, the client who received the data was confused, called her manager, and questioned their professionalism. 

When Ami sat down with her manager to discuss what went wrong, she admitted that she’s been overwhelmed with work. She spends most of her time chasing employees for data, sifting through mountains of paperwork to fix and approve, and answering questions from employees. By the time she has all of the info she needs, she’s short on time to meet her fast-approaching deadlines which makes it harder for her to focus.

Her manager empathizes, but can’t let another mistake like this happen.

So, he decides that all procedures need to be triple checked! The last thing Ami and her colleagues want is more work during this high-pressure time, but no one could think of any other way to ensure their work would be perfect.

Moral of the story? No matter how good their intentions, people make mistakes

But when it comes to payroll – especially the year-end tax adjustment period –  mistakes are a no-no. So how can you make this process error-free, without adding more work?

You digitize it!

If you think about it, ninety percent of payroll is data collection. The rest is using your expertise to approve and handle exceptions. 

Introducing SmartHR: the digital tool we implement for year-end tax adjustments that’ll save you a ton of time (and hair). 

It’s a dynamic self-serve platform that guides employees and collects all the data you need. Here are 6 ways that digitizing your year-end tax adjustment process will make your life easier:

1. You don’t need to prep a crazy amount of paper-based packets

Traditionally, payroll specialists send all employees a thick packet of documents that employees need to fill out to update their information for year-end tax adjustments. This is a labor-intensive process for the payroll specialists who have to prepare all of the packets and check all of the employee’s submissions, and for the employees who have to complete so many forms. When your company uses a digital platform, all payroll specialists have to do is send a link to employees!

2. You don’t need to chase employees for responses (for two whole months!)

Payroll specialists typically spend all of October and November gathering data from employees. Employees procrastinate, there are delays in receiving forms, issues with communications, and other obstacles that get in the way of data collection. 

With our system, it’s easy to ping employees with reminder notifications and our team at weConnect can follow up with them to make sure that everything is taken care of. 

3. You don’t need to answer endless amounts of questions about how to fill out the forms (even though you’ve already briefed everyone thoroughly)

Let’s be real. Traditional Japanese forms are confusing. There are questions and checkboxes cluttering each page, and it’s hard for employees with no HR knowledge to understand what needs or doesn’t need to be filled out. It’s no wonder why people have so many questions!

Our digital application process has a dynamic workflow that guides employees through the information they need to submit based on how they’ve answered previous questions. Because the platform guides each individual, it helps cut down on the volume of questions people typically ask. 

The process for each employee to complete the forms? Start to finish, 5-10 minutes. 

4. Here’s the big one: you can dramatically reduce your margin of error

Data migration – the process of each payroll specialist inputting information from each employee’s form –  is where errors happen. To make matters worse, most forms are handwritten and payroll specialists are under a lot of pressure with deadlines, which makes it even harder to work without cutting corners. When you use a digital platform, all of the information has directly been inputted into the system by the employee so there’s no need for data migration.

5. You can store all of your data in one spot (and we mean ALL)

This same platform is also our electronic payslip platform and My Number platform. It’s how we collect data for social and labor insurance filings. So when you work with us, not only will you gain support with year-end tax adjustments but also with these other features.

6. You don’t have to worry at all about security

Our system enables a secure way to disclose private information for each employee. Employees get links to answer questions and can securely provide information like their My Number, so this whole process is safe and worry-free. The platform is fully compliant with Japan labor and privacy law requirements. 

We make year-end tax adjustment a DREAM

You can try to come up with your own system (like many HR teams have), but the odds of it matching the capabilities that have been produced by technology companies are slim. Our value is using the latest and greatest technology to help make your work processes easier, and we’re the masters of administering all-things SmartHR.

Ready to stop pushing those paper packets around? Contact us here and we’re happy to talk with you about how to implement this system for your company.

KK vs GK – the Complete Story! The 5 Key Differences between KK and GK entities in Japan.

Types of Companies in Japan
weConnect Resources

KK vs GK – the Complete Story!

The 5 Key Differences between KK and GK Entities in Japan.

Struggling to understand the differences between KK and GK entity types in Japan? We’ll help you out.

You’re so excited to start your business in Japan. One day, you decide it’s time. Let’s do this. You plop into your chair, crack your knuckles, and start typing away on your computer, researching the process on how to incorporate in Japan. But then…you come across different types of companies in Japan. And you realize you have to choose between entities you’ve never heard of, like Kabushiki Kaisha and Goudou Kaisha. Your brow furrows. What the…?!

At this point, after reading a bunch of jargon in random internet articles and rubbing their temples, our clients typically come away with more questions than answers. 

Don’t let this hiccup put a delay on starting your business!

We’ve handled over 1,000 entity registrations across all industries and have seen it all. So let’s take out the confusion when deciding whether KK or GK is better for your business in Japan. We want to help you quickly make the right choice and move on with expansion of your business.

For the record, there are 4 different types of “business entities” in Japan

They are: Kabushiki Kaisha (KK), Goudou Kaisha (GK), Gomei Kaisha and Goushi Kaisha.

The second two are NEVER used, so let’s forget them. The first two are the most common, so let’s focus on those.  

What’s the difference between Kabushiki Kaisha (KK) and Goudou Kaisha (GK)?

If incorporating in Japan was like Star Wars, Kabushiki Kaisha is like Yoda and Goudou Kaisha is like Luke Skywalker (hey, we’re going out on a limb with this one – stay with us!). One has been around for ages and is honored and revered; the other is respected and has unique talents not even Yoda can do. There’s no doubt that Yoda is a great option, but you might have a specific reason to go with Luke.

From an academic perspective, the KK is a joint-stock company (like the American C Corp) that’s been around since 1873 and has the most flexibility as an entity type. The GK is a limited liability company (LLC, originally modeled after the US LLC structure) that has been around since 2006 and can do almost the same thing that KKs can do with some unique benefits.

To Break it All Down, Here are 5 Key Differences to Consider when Comparing KK vs GK:

1. Credibility

Since the KK has been around for over a century, your Japanese customers, employees, and business partners might feel it carries more credibility compared to a GK. However, now that GK has been around for 15 years, credibility is becoming less of an issue, especially when big names like Amazon, Apple and ExxonMobil are GKs. It’s impossible to know for sure how strong the image is of the GK, but depending on the industry and commercial plan, a KK may still be the safest bet. 

2. Scalability

KK allows for a scalable organization, with the ability to have a Board of Directors, list on the stock exchange, and raise additional money through selling shares, etc. In contrast the GK can do none of these things.

3. Ownership

With a KK, there is a clear distinction between ownership (shareholders) and management (directors). In contrast, GK investors are considered partners who help run the company and their investment amount does not always reflect the same level of authority nor voting rights over the company. 

4. Cost

The registration process and ongoing corporate compliance for GKs is simpler and less expensive compared to KKs. For example, KKs have higher registration taxes charged by the government to legally establish compared to GKs (JPY 150,000 for KK and JPY 60,000 for GK). Also, KKs are required to, at minimum, annually hold shareholders meetings, publish financials and submit other reports, whereas GKs do not have any of these requirements. If a KK is set up with a Board of Directors, even more compliance is required including holding quarterly Board of Director meetings and taking minutes as well as appointing a statutory auditor (this is a named person, not a audit company) who is responsible for the financial integrity of the KK and must submit an auditor report at the end of the year. All these additional requirements for a KK come with additional legal support costs on an annual basis. Without a Board of Directors, you are looking at JPY 200,000 – 300,000 (USD 2,000 to USD 3,000) per year in additional compliance cost. If you have a Board of Directors, this cost is even greater.

5. Tax Benefits

If the GK is wholly owned by an American corporation, the American corporation has the option to elect the GK as a “disregarded entity” for international tax purposes, allowing it to be treated as a branch of the US from the perspective of US tax. This option does not exist with the KK.

So which one’s better, Kabushiki Kaisha or Goudou Kaisha, KK or GK?

We literally had an internal debate about this for over an hour and couldn’t come to a conclusion about which is better by comparing the features, alone. It’s like comparing Yoda and Luke Skywalker – you might think that Yoda is the obvious choice, but if your primary goal is to defeat Darth Vader, then Luke Skywalker is the guy for the job.

Likewise, most people assume that KK is the safer choice, but there are benefits to going with a GK depending on your business aims. So in general, one is not better than the other; but there’s one that’s better for you depending on what you’re looking to achieve with your business.

Still stuck? This can help:

Credibility and cost are the two things that weigh the most on the minds of leaders during this process. If you have Japanese clients, and you want absolute credibility with them, then go for the KK. If you’re mindful of expenses and not so hung up on the image, then the GK may be the best choice for you. 

And if you’re an American company? You can take advantage of the unique tax benefits that the GK offers (we can walk you through this if you want more info).

Want to talk it through? We’re happy to help – contact us here and we’ll guide you to the best decision!

Oh, and let the force be with you (c’mon, we had to say it). 

How to Set Up a Business in Japan from Abroad

Start a Business in Japan from Abroad
weConnect Resources

How to Set Up a Business in Japan from Abroad

What if we told you that you could set up your business in Japan in one week, without stepping foot in the country?

Most people find it hard to believe. Why? Because for many, even setting up their home internet in Japan can feel like a trek up Mount Fuji. Japan is notorious for having a lot of paperwork, one-too-many regulations, and processes that can take weeks longer than you’d expect in any other country. So, the idea of being able to set up your business in Japan without being in the country can sound impossible.

But the reality is that none of these things are issues when it comes to setting up your business in Japan.

Covid-19 forced Japan to impose travel restrictions which might make you feel delayed in starting your business in Japan. So, we want to take this opportunity to share with you how you can set up your business even if you can’t travel to the country right now. Luckily, you don’t have to let Covid-19 stop you from moving forward with your plans!

To set up your business in Japan, all you need are: incorporation documents and registration forms, a registered address, a registered company seal, and a bank account. 

For starters, you don’t need to hire a local representative to set up your business in Japan…

Most people assume that in order to expand their business into Japan, they need to hire a local native to be the director for their Japan subsidiary. It feels like you need to rely on a person you don’t even really know to get your business set up. Plus, not to mention the fact that they’ll have total control and power of attorney over your business. Yikes.

Unlike in other countries, hiring a local director is not a prerequisite to registering and opening your business in Japan. You can set your business up first, and then think about the hiring process later.

…But you will need help from someone based in Japan (hint: us!)

There are three parts of the business registration process where you’ll need someone on the ground to help if you want to set up your business remotely: a registered address, a registered seal, and a bank account. 

  1. Registered Address: A registered address is a requirement for incorporation. Provide us with the address and proof you are allowed to use it and we’ll register it for you. Don’t have a location in Japan, yet? You can use our address. Added benefit? We can receive and handle any government mail and scan it to you. (And, if you use our accounting and payroll services, we can even take care of it for you… *wink wink* )
  2. Registered Company Seal: A seal is also a requirement, which represents the Power of Attorney of your company. We can make one for you and safeguard it.
  3. Bank Account: You need a bank account to receive the capital to set up the entity. If the representative and shareholders don’t have bank accounts, then you can use a third party. You can use our weConnect custody account for this part of the process. 

There’s one last thing you’ll need to set up your entity (but if you work with weConnect, it’s optional): 

When preparing your forms for incorporation, you’ll need to get your documents notarized in your home country. That means you’ll need to visit your local public notary office and send the documents to Japan. This process can really extend the timeline of registering your business. And if that’s not inconvenient enough, Covid-19 will definitely put a delay on you getting a notary and sending it to Japan.

If you want to speed up registering your business to as little as a week, then we can set up the business on your behalf in our name and then immediately transfer the ownership to you, which doesn’t require you to have anything notarized. 

You don’t need to be present if you hire a firm to help you – heck, you don’t even have to leave your chair – and we are the masters of making this happen. Get it done fast and out of the way so you can focus on business development. 

Let’s help you figure this out

To get started, contact us here to set up a time for a chat and we’re happy to walk you through the process.

And if you want to learn more about how to set up a business in Japan, check out all of our resources on this page, here.