If you want to expand your business in Japan, it requires established process to show your commitment to Japanese market. This slide explain the process of 10 steps as tips.

1. Get started to your
business in Japan
Best practice of 10 steps to start business in Japan
Every succeeded US company in Japan
walk through this way

2. “When in Rome,
do as the Romans do.”

3. 1. Establish legal entity

4. Why you must establish legal
entity in Japan?
• Show your commitment to Japanese market
• Japanese enterprise people know that you can run away from Japanese market easily unless you
establish legal entity.
• Earn Japanese people’s trust
• To show your legal existence proof
• Become a member of Japanese society
• You must be a member, not a guest for Japan.
• To hire excellent Japanese people for your local staff
• Belonging registered local company
= personal credentials for employee in Japan
• To offer benefit program to local staff
• Health cost insurance
• Welfare pension
• Local company have to dealing with payment income tax and residential tax instead of local staff, that makes life
easier for them.
• To get “.co.jp” domain for localized website.
• It requires legal entity to get “.co.jp” domain.
• Japanese people know that only registered corporation can get a “.co.jp” domain, so it makes credential,
Japanese credit research company check it when they survey your business.

5. Find a Solicitor
(Shiho Shoshi) who can speak English
• Solicitor is certified
lawyer in Japan who
can help you
register/update
company information
to Legal Affairs Bureau
in Japan. http://www.shiho-
shoshi.or.jp/html/global/english/index.html

6. How to establish legal entity in
Japan
1. Make “Articles of incorporation” in manner of Japanese
law.
2. Get notarize your “Articles of incorporation” at notary
public officer.
• It takes a day.
• The total cost for notarize is around 1,000 USD.
3. Chose company types
• Two choices
• Kabushiki Kaisha (known as “K.K.” in US people)
• Equivalent to Corporation in US
• Goudou Kaisha (Known as “G.K.” in US people)
• Equivalent to LLC (Limited Liability Company) in US
• Most Japanese are not familiar with GK, but that is OK.
• Let assume Japanese representative as local entity representative.

7. Notary Public Office

8. How to establish legal entity in
Japan (cont.)
4. Make seals
Kaku-in(box-shaped seal)
This seal is used for
marking “official” on
corporate documents, for
not only public but also
internal.
Ginko-in(seal for banking
account)
This seal is used for
marking on documents for
banking account.
Daihyo-in(seal for
representative)
This seal is used for
marking on legal
documents.
It requires to register this
seal print to Legal Affairs
Bureau.

9. How to establish legal entity in
Japan (cont.)
5. Open a local bank account and pay money into it to get
“Certificate of Deposit of Paid Money”
• This is the document required to register legal entity.
• There is no a minimum sum for deposit, but sum of deposit equals to
credential in Japan, so I recommend to deposit 10,000 USD at least,
100,000 USD or more is best.
• It requires Ginko-in (seal for banking account).
6. Make an application form to establish legal entity to Legal
Affairs Bureau
• It requires Daihyo-in (seal for representative).
• It requires your registered personal seal in Japan or signing certificate
from US embassy, if you are going to be representative as well.
7. Apply to establishment form to Legal Affairs Bureau
• It takes a week.
• Application fee is deposit * 0.007 or 1500 USD (bigger one)

10. Legal Affairs Bureau

11. A copy of a registration
certification
The above is Apple Japan’s one.
Once you register your company, anyone and everyone can get this copy of a
registration certification at Legal Affairs Bureau with 4 USD fee, so it works as checking
credentials.

12. Cost for establish legal entity in
Japan
Item Cost/Price Example
Fee for Solicitor 700 ~ 1,500 USD 1,000 USD
Notarize Articles of
incorporation
1,000 USD 1,000 USD
Make seals 100 ~ 500 USD 300 USD
Deposit as Capital fund From 1 to ∞ USD, it is
your choice.
10,000 USD at least.
Recommend 100,000 USD.
10,000 USD
Application fee Deposit as Capital fund *
0.007 or 1500 USD
(Bigger one)
1,500 USD
Total 13,800 USD
1 USD = 100 JPY in this calculation

13. Optional: invoke at shrine for
business success
It costs 300 ~ 500 USD, it is important as a form of initiation in Japan.

14. 2. Register your
Japanese company to
Tax Office

15. Find a Tax accountant
• Tax accountant is
certified tax attorney in
Japan and they help you
tax matters in Japan.
• It costs 300 USD/month
as monthly advisory fee.
• At the end of fiscal year,
it costs 1,000 ~ 3,000 USD
for creating financial
statements for Tax office. http://www.nichizeiren.or.jp/eng/

16. Register your local entity to Tax
Office
• It requires to register your local entity to Tax Office.
• Consumption Tax
• Even if your company charge fee from US, it requires to
register.
• Because all Japanese and Japanese entity have to pay
“consumption tax” when they buy something.
• Your company have to charge 8% of the price as consumption
tax behalf of Japanese government.
• You have to pay it to Tax Office at the end of your fiscal year.
• Corporation Income Tax
• Minimum corporation income tax is 700 USD/year.
It has to be paid even your company has no revenue or
charge fee from US.

17. 3. Register your
Japanese company to
Local Government Unit

18. Charge residential tax instead of
Local Government Unit
• It requires your Japanese company has to deduct
income tax and residential tax from Japanese
employee salary every month.
• It requires your Japanese company have to pay
those tax behalf of Japanese employee to Local
Government Unit.
• Your Tax accountant will take care of them.

19. 4. Register your Japanese
company to Labor Standards
Supervision Office

20. Find your Labor and Social
Security Attorney
• Labor and Social Security
Attorney is certified
attorney in Japan and
they help you social
insurance and welfare
pension in Japan.
• It costs 300 USD/month
as monthly advisory fee.
• It costs 1,000 ~ 3,000 USD
to creating labor related
agreement and
application.
http://www.shakaihokenroumushi.jp/en/tabid
/296/Default.aspx

21. Apply registration legal insurance
for employee
• Apply registration for “Workman's accident
compensation insurance” to Labor Standards
Supervision Office.
• Apply registration for “Unemployment insurance”
to “Hello Work” (job-placement office).
• Your Labor and Social Security Attorney will take
care of them.

22. 5. Register your
Japanese company to
Japan Pension Service

23. Japan Pension Service

24. Apply registration social insurance
and welfare pension for employee
• It requires your Japanese company has to deduct
social insurance fee and welfare pension cost from
Japanese employee salary every month.
• It legally requires to your company pay the half of
social insurance and welfare pension for Japanese
employee.
• Your Labor and Social Security Attorney will take
care of them.

25. 6. Opening office in
Japan

26. Why you have to open office?

27. Home office is common in US,
but…
• You have to give Japanese employee to choice, work at
home or work at office.
• Because most people don’t have a room for working at home.
• It often requires to hold meetings face to face with
Japanese people.
• Web/Video/Skype conference isn’t common in Japan, some
companies prohibit them from security point of view.
• For Japanese, face to face meeting is still popular.
• Not only Japanese customer but also hiring candidate
check office location.
• It is important to select right place to open office.
• Sometimes Japanese customer visits to check your office.

28. Face to Face meeting is still
popular in Japan

29. Most Japanese apartment is small so no
space for working environment
(Especially young generation employee)

30. Even middle age generation who bought
condominium, it is hard to find a room for
working.
Bed room for
first children
Bed room for
second children
Bed room for
husband and
wife
Living/Dining
Typical condominium (75㎡ = 807 square feet) in Japan

31. 7. Hiring local staff

32. It is hard to find Japanese candidates
who has high English capabilities
Rank Country TOEFL Score
1 Netherlands 100
2 Denmark 99
3 Singapore, Australia 98
80 Korea 81
105 China 77
135 Cameroons 70
135 Togo 70
135 Kuwait 70
135 Japan 70
139 Guinea 69
139 Sierra Leone 69
163 Mauritania 58
Rank Country TOEFL Score
1 Singapore 98
2 India 92
3 Malaysia
Pakistan
Philippines
88
9 Korea 81
16 China 77
24 Afghanistan 73
24 Mongolia 73
24 Vietnam 73
25 Japan 70
28 Laos 67
29 Tadzhikistan 66
30 Cambodia 63
Worldwide Asia
http://www.meti.go.jp/policy/economy/jinzai/san_gaku_kyodo/sanko1-3.pdf

33. High English Capabilities won’t assure
excellent capabilities in Japan
Excellent Capabilities
High
English
Capabilities
Japan
Excellent
Capabilities
High
English
Capabilities
Global
It is hard to find
candidate in this area.
Most high English capable people
are specialized for English
capability only.

34. Don’t request “perfect” English capability if
you want to hire qualified people in Japan
• High English capability doesn’t mean equal to high
capability in Japan.
• Most Japanese are afraid of working in foreign
company.
• “Better the devil you know than the devil you don't.”
• You have to explain your company career education,
career path, corporate culture, personnel evaluation
system and work environment clearly and carefully.
• It is hard to find candidates who has high English
capability and high functional skills in Japan.
• If you request both, it takes much time and cost to find
candidates.

35. Hiring low English capabilities but Excellent people
and educate them English at school at night is great
option. You can inspire high loyalty in Japanese
employees.

36. 8. Localize products and
Website

37. Without Japanese website, your company
isn’t exist for Japanese in cyberspace.
• Most Japanese avoid to read English website.
• Keep in mind, Japanese search Google in Japanese,
not English!
• When sales try to get appointment, almost
Japanese customer check your website.
• If the website is English only, that means “It seems hard
to dealing with this company” for customers.
• It is important to get .co.jp domain. Only legal
entity in Japan can get this domain name. This is
the proof that your company is legal entity in Japan.

38. Localize in Japanese your product
and documentation
• You have options to localize product and
documentation in various ways.
• Ask translation company
• Localize service

39. 9. Prepare business
toolset

40. Prepare business card

41. You can’t business without
business card in Japan
• It is etiquette that you exchange business card in Japan.
• Invest money for creating good quality business card.
• If you cheapen business card, that impress yourself “cheap”.
• Never run out business card.
• Business card helps people to remind you.
• If you don’t exchange business card with someone, people feel
slighted or undervalued.
• If you make cheap business card in Japanese, that means
“temporally”, Japanese people won’t believe your commitment.
• If you want to make impress as “valued person”, make high
quality business card, like every Japanese company CxO does.

42. Prepare logo and address printed
envelope = branding

43. 10. Press Release and
Media Interview

44. Reed Hastings, Netflix CEO came to Japan and
took media interview to announce start
business in Japan

45. Logan Green, Lyft CEO came to Japan and took
media interview to announce starting business
in Japan

46. Dave Wright, SolidFire Founder came to Japan
and took media interview to announce starting
business in Japan

47. Media Interview: Final rite of passage
to birth of your business in Japan
• Never skip this! Or you will fail.
• Recommend CEO show up in Japan. At least, other CxO or VP should come. (But that would be
less impact for Japanese media. It might be taken as sign that you don’t commit to Japanese
market.)
• The cost is not so high, 10K to 20K USD.
• It depends on PR company. Recommend to use local PR company, or you will fail because US based PR
company don’t know Japanese customs.
• Japanese media will write articles, and Japanese will know your business.
• All bets are on! All preparation now become the evidence that you commit to Japanese market and
ready to start.
• Local entity
• Office
• Japanese employees
• Japanese website
• Business toolset
• Localized products/services
• Don’t forget to prepare small gift, give away as souvenir.
• This will be sign that you understand Japan.
• Ask your Japanese representative or local PR company to chose and prepare it.
• It is small thing, but important thing in Japan. Not matter of money, matter of hospitality.

48. Welcome to Japan!

49. Now you are become member of
Japanese society, not a guest.

50. After lunching your
business in Japan

51. Keep in mind:
Japanese business process is slow.
• In Japan, we have an
idiom that says “Three
years on a cold stone will
make the stone warm”.
• It means you should not
give up, and that
perseverance and
patience will bring good
results.
• Japanese business
process is slow.
Don't give up!

52. Need help?
• Yoichiro Takehora
• Yoichiro@takehora.jp
• https://jp.linkedin.com/in/takehora