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How to Change Your Business Structure in Japan

How to Change Your Business Structure in Japan

Starting a company in Japan is not complicated if an entrepreneur follows the requirements imposed by the Commercial Code. The investor can also decide on the type of company most suitable for his or her activities before starting the registration procedure. One can start a small company registered as a sole proprietorship or partnership or go for a limited liability. However, small businesses turning into larger ones are then required to change their structure.

There is no direct way of changing company structure in Japan, as the business owner will first be required to de-register the first business form and then incorporate the new company. Below, our company formation agents in Japan explain the steps for changing company structure in this country.

De-registering a company in Japan

As mentioned above, the first step in changing the business form is to de-register the old company by filing a petition with the Trade Register in Japan. Once this petition is filed, the company will be dissolved and removed from the Companies Registrar’s database.

Company formation steps for changing business forms in Japan

Once the old Japanese company is dissolved, the registration of the new company can take place. In order to keep the history of the old company, the business owner can keep the following:

  • –          the old company’s trade name can be kept when changing business forms;
  • –          the company’s registered address can also be kept when changing company types;
  • –          the assets of the company can also be kept and registered with the Trade Register;
  • –          the business activities can also be maintained and written in the company’s incorporation documents.

With respect to the company formation procedure when changing the company structure, our consultants in Japan can help foreign investors.

Changing a private limited liability company into a public company in Japan

A particular case when changing company structure in Japan refers to turning a private limited liability company into a public company. In this case, the shareholders will be required to amend the private company’s Articles of Association in order for the company to become a public one.

For assistance in changing business forms or setting up a new company in Japan, please feel free to contact us.

Are you looking for information on other matters of interest for foreign investors or foreign nationals living in Japan? Our team also includes immigration lawyers in Japan who can provide you with useful information, and assistance, regarding the applications required for the residence permit, the renewal of the residence permit, its change according to a new status of residence, and more.