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Open a Joint Stock Company in Japan

Open a Joint Stock Company in Japan

A joint stock company in Japan, often referred to as a stock company or, in Japanese, a Kabushiki Kaisha, is a type of company defined by the Companies Act of this country

In case you want to start and develop a business in this country, opening a joint stock company in Japan will help you get into business quickly. Our company formation advisors in Japan can assist you in opening such a business entity.

How to open a joint stock company in Japan

joint stock company in Japan can be opened with a capital of only JPY 1. The total incorporation cost is around JPY 240,000 (around USD 2,500) because of notarization fees and taxes.

The most important stages in opening such an entity in this country are:

• Preparing and notarizing the articles of association;

• Receiving the capital, directly or through an offering.

The incorporation of a joint stock company in Japan is effectuated by one or several incorporators, which can be a private person or a corporation. Our company registration consultants in Japan can offer more details on this subject.

In case there are more incorporators, they have to sign a partnership agreement prior to incorporating the business entity.

Joint stock company in Japan obligations

Obligations for every joint stock company registration in Japan are the following:

  • You must submit a notification to the Bureau of Economics in the region where the enterprise will be registered and obtain a corresponding document to be included with the package of documents prepared in advance;
  • If the joint stock company in Japan fails to meet the minimum capital requirements within five years of its establishment, its organizational and legal form will be changed, or it will be struck off.
  • Shareholders or co-founders will not gain profits until the minimum capital requirements are met;
  • Companies are required to publish financial data.

Company formation in Japan can be complicated and requires specific knowledge about the legal, economic, and accounting aspects of doing business there. Entrepreneurs who want to save time can hire our team of specialists in helping with the registration process and also learn about the different types of companies in Japan.

Necessary documents for opening a joint stock company in Japan

When starting a joint-stock company in Japan, there are several important documents required, including:

  • Articles of Incorporation – this explains the basic rules of the company being formed and must be authenticated by a Japanese Notary Public;
  • Registered seal certificate of the promoter (Signature Certificate)- which must be submitted to the Notary Public as part of the notarization process. For foreign nationals without a registered seal, a Signature Certificate may be used instead and must be notarized by a Notary Public or consular office;
  • Proof of Paid-In Capital – company registration in Japan requires a copy of the bankbook of the account to which the capital was paid;
  • Acceptance of Office Letters – all initial officers of the company must provide a letter of acceptance with a seal attached.

Our team of Japan company formation specialists can help ensure that the necessary documents are correctly prepared and submitted, reducing the risk of errors or omissions that could delay the registration process.

Funding the corporate capital for a joint stock company in Japan

The articles of association should offer a fixed corporate capital received by the business at its incorporation.

During the registration procedure, there will have to be submitted a proof that the corporate capital has been acquitted, together with a bank document presenting the proof of funding. Our Japan company formation specialists can provide further details on this aspect.

The transfer can be effectuated from one of the founder’s personal bank accounts to another one of his or her bank accounts, since the entity does not have yet its own one.

Apparently, numerous Japanese individuals may get confused by this step, therefore it might be a good idea to contact the legal affairs bureau to ensure that the planned documents are in order from their point of view.

When they open a joint stock company in Japan investors will also need to observe the regulations for taxation, the Japanese consumption tax (VAT) and other regulations concerning annual reporting or employment. 

Advantages of setting up a joint stock company in Japan

Opening a joint-stock company in Japan has several advantages, including increased credibility for your company’s image and name, the ability to raise additional capital through stock options, and selling shares. It also has the potential to attract outside investors in the public stock market, provides protection for shareholders from personal liability, and is an easier attraction to Japanese employees due to the good reputation of joint-stock companies in Japan.

Publicly traded companies in Japan all use this structure, so smaller businesses may adopt this to appear more credible. However, keep in mind that the current Japanese laws regarding joint-stock companies in Japan are stricter. Even though only one person is needed to form a company, it may also require a board of directors with a minimum of 3 directors, as well as a statutory auditor.

Due to these requirements, joint-stock companies in Japan are generally considered more credible than other types of companies.

It is highly recommended to hire a lawyer when opening a joint stock company in Japan so that you make sure you meet all requirements according to the Japanese law system.

Investors interested in learning about why the country is a great place for future investments can find these statistics helpful.

  • There were approximately 3,800 companies that had been listed on the Tokyo Stock Exchange (TSE) in Japan in 2022;
  • The export of manufactured goods is a very significant aspect of the Japanese industry, accounting for 91.97% of all merchandise exports from Japan;
  • Japan is the top producer of automobiles worldwide;
  • Japan’s GDP was evaluated at over 4 trillion dollars in 2021.

For those interested in immigration to Japan and Japanese residency, please contact our specialists for more details.

For more details about a joint stock company in Japan, or if you are interested in setting up a company of any type in Japan, we kindly invite you to contact our Japan company formation advisors.