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New Company vs. Shelf Company in Japan

New Company vs. Shelf Company in Japan

The local legislation in Japan is quite flexible, allowing foreign investors to set up various types of business entities or to buy an already-made one, also known as a shelf company.

In case you intend to open a company in Japan and you need help in selecting the most appropriate business structure, we can help. In this article, we make a brief comparison between a new company and a shelf company in Japan.

Why choose to register a new company in Japan?

Setting up a new company in Japan comes with certain advantages, such as:

  • • Several business structures to choose from;
  • • Usually, it is less expensive than a ready-made company;
  • • Presents very little or no risk. The newly incorporated business has not been trading before, therefore, it has not been affected by the actions of the previous officers.

In order to open a new company in Japan, the following steps are required:

  • • Establishing a business address;
  • • Deciding on the basic elements and gathering the requested documents;
  • • Preparing the Articles of Association;
  • • Depositing the capital;
  • • Getting ready the documents for the business entity registration;
  • • Registering to the registry;
  • • Effectuating the tax and insurance related procedures and so on. Our company formation consultants in Japan can provide assistance in opening a new business entity in this country.

Why choose a shelf company in Japan?

shelf company in Japan holds certain advantages over a new company, such as:

  • • Less time required in order to be able to start doing business;
  • • Less time required to change its ownership when both parties are present;
  • • They already have a bank account opened;
  • • Some of them might already have a trading history, which presents a greater credibility for future clients;
  • • Other advantages: our Japan company formation representatives can provide more information related to these other advantages of shelf companies versus new companies in Japan.

Whether you choose to open a new company or a shelf company, you should know thar certain types of investments in the country qualify for a Business Manager visa. The holder of the visa will be granted temporary, followed by permanent Japanese residency, if he chooses to apply for this status. You can find out more about the application procedure and the needed documents from our team.

In order to immigrate to Japan, one will need to spend more than ten years consecutively in the country, in most cases. This period can be reduced for some types of professionals, however, other conditions also apply apart from the minimum time lawfully spent in the country. These include having sufficient income in order to live in Japan independently and meeting the tax requirements.

Foreign entrepreneurs interested to open a new company or to acquire a shelf company in Japan are invited to contact our friendly company registration representatives in Japan.

Opening a company in Japan can also mean that the founder(s) will need to remain in the country for short-term purposes or, in some cases, for mid to long-term purposes. depending on your length of stay, a visa or a residence permit and a residence card will be issued to you, following a standard application process. Our team will give you more details about Japanese residency upon request.