"Status of Residence" for setting a company up in Japan. |
If you are a non-Japanese citizen and want to start business in Japan,
the fundamental issue that needs to be cleared is the acquisition of "Status of Residence".
Japanese law stipulates strict requirements for accepting foreign business owners.
On this page, introducing the relationship between how to setting up your company
as an executive manager and "Status of Residence".
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For the opening of a sales office that does not regret |
"Status of Residence" refers to the commonly referred "Working Visa".
To establish your company in Japan, we'll introduce you some methods that includes the legal knowledges of Japan that you should know before you take action for it. However, please be aware that there're various legal conditions for establishing a company that can not be described everything here. The main focus is on what you need to do to obtain an "investor / business manager" which is belonging to the "Status of Residence" for a long-term stay in Japan as the company's chief executive officer.
【Preparation for setting up Head Office or Branch Offices in Japan】
In the case of non-Japanese citizen and want to start business effectively in Japan,in order to set up a head office or branch office (including a subsidiary) in Japan, beforehand, it's necessary to collect and analyze market information about the location for future sales offices.
To do so, establish a temporary representative office in Japan, and dispatchmanagers or employees familiar with marketing. it's possible to formulate strategiesthat carefully consider future sales activities which can also be expected to makehighly reliable management plans for future company.
Not to mention market research and information gathering. preparations for future sales office rental contracts, purchasing office supplies and equipment used there, and promoting products and companies,etc.
Conducting the above activities using a temporary representative office is not restricted by law.
On the other hand, direct sales to customers and trading companies, and acceptance of orders using sales clerks and telephone sales-people can not be done legally at that location.
Because, companies and sales offices must be registered with the Japanese Legal Bureau(法務局 = homukyoku)under Japanese law (exsept for self-employed business). Therefore, the temporary representative office as using preparation room can't be legally assessed as valid, so it's meaning that legally valid and ongoing transactionswith other companies and others won't be able to do at that location.

(Registration is required to make a legally valid transaction.)
Recognize that location's role as a temporary gathering place for setting up company's Head Office or BranchOffices. As much as possible during that period, it's necessary to find out a place with good operating efficiency inthe future for the company, and to prepare for the conclusion of a purchase or lease contract with real estateowners.
【Relationship between preparation for bulding a company and Status of Residence】
● For obtaining the "Intra-Company Transferee ". (”Status of Residence” for transferees)

The problem in this case is the employees dispatched to the temporary representative office do not fall under "Intra-Company Transferee" which is belonging to the "Status of Residence". (What's that ?, see here)
The reason is simple. It's judged that the non-registration is lacking in social credibility.
Naturally, in that situation, it's impossible to clear the conditions for obtaining the "Intra-Company Transferee".
As an alternative, they need to obtain "Short-Term Stay" which is belonging to the Status of Residence and do asmuch as they can while staying in Japan (Max stay date 90 days). In addition, the procedure of "Short-Term Stay" is very easy.
※ In "Investor / Business Manager" under "Status of Residence", there is a setting of 4 months of allowable stay for preparation for company establishment. But the conditions for obtaining permission are quite strict. Forexample, submission of a business plan document backed by a solid basis etc.
[ Questions about the relationship between company start-up procedure and "Status of Residence" ]
Q : Is it possible to change "Short-Term Stay" to another "Status of Residence" ?
A : In principle, the Regional Immigration Bureau does not allow changes from "Short-Term Stay" to other "Status of Residence".
As an exception, they only supports those who already have a "Certificate of Eligibility" (What's that ?, Seehere).
【Relationship between securing of sales office and "Status of Residence" 】

● For obtaining the "Investor / Business Manager"
Unlike the above representative offices, the following requirements are required to be able to execute legally valid transactions with other companies and customers.
If you are planning to start up in Japan, or if you have a head office outside of Japanand want to set up branches in Japan, you must formally register them with the Japan Legal Bureau before opening.
By the way, one item that is absolutely necessary when applying for registration is the location of the head office or branch offices in Japan. By that time, you must establish a lease or sale contract for those locations and prove it.
In fact, this issue is also deeply related to obtain an approval for a "Investor / Business Manager" which is belonging to the "Status of Residence".
One of the basic approval criteria for the above Status of Residence is that at least facilities for conducting business as a Head Office or Branch Office are secured in Japan.
Furthermore, because it's a condition that a Sales Office is operated continuously, in the case of short-term rental (monthly apartment or shared space for office use),there is a high possibility that it'll be disapproved for the qualification of it.
Therefore, even if you set up a Sales Office in Japan, there is a risk that you won't be able to stay in Japan as a manager unless you pass the "investor / business manager" permission criteria.
This is a tip-end fall.
In order to avoid that, it is necessary to firmly grasp the permission criteria of "Status of Residence", and to adjust the office lease and registration timing. If you have any concerns, be sure to consult with a professional.
【Japan's important customs in contracting】
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From the left : squareseal・registered seal(forcompany), registered seal(for personal) |
As mentioned earlier, it is very important to determine the location of the sales office. In order to realize that, it is necessary to make a rental or sales contract with a real estate owner in Japan. But before that, let's also know the customs of contract procedures in Japan.
As you know, contract making is an important act to show mutual communication in various contract conclusion situations. In Japanese culture, there is a custom of stamping a registered seal(実印=jitsu-in) on a contract as proof that the contracting parties agree.
At that time, You need to attach a document of certification of a seal to prove that the contract seal is legally valid. Seal certification is a tool to confirm that the seal stamped on the contract is the registered seal. The contract on which the registered seal is stamped gives both contractors legal binding power. It's an important tool that shows the company's decision-making. Please avoid using easily to prevent forgery.
It's a good idea to make a separate seal for your daily activities in your company. (In Japan, it's called a square seal.(角印=kaku-in))
(Admonition)
In simple contract situations, there are many cases where you don't have to stamp the registered seal(jitsu-in) on any documents. Since the registered seal is very important tool to individuals and companies, please avoid using them easily. As much as possible, please use only for contracts important to the company.
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Image of a ”seal certificate”
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【What's a document of a seal】
A document of certification of a seal (In the following, it's written as ”seal certificate” )is means that the seal you pressed is legally valid. Before obtaining it, you need to have produce an expert person an original seal.
After that, you have to register it at a Japanese government office. There are 2 types of seal registration: one for private use and one for company use.
(You have to get the following knowledge about the seal certificate)
And the government office that registers them is also different.
■ For private use, register it at a City Hall (市役所=Shi-yakusho)that has jurisdiction over the address where you live.
■ For company use, please register it at a Legal Affairs Bureau(法務局=Houmukyoku) that has jurisdiction over the company location.
【The biggest problem is that you need to register as a resident toobtain a seal certificate】
(Relationship between various procedures and "Status of residence")
In order to register a registered seal for private use at City Hall, it’s necessary for you to be registered as a resident of Japan, at least. In other words, it means that you have to be a person with Status of Residence for "Long term". That person should have been given a plastic residence card.
In other words, the status of residence is closely related even at this stage of the seal registration process.
Next, it's about seal registration for companies, but you can not obtain seal certificate if you don't complete registration of company. In the usual flow of procedures, bring the seal which you're going to use for the company when registering the company at the Legal Affairs Bureau, and register the seal at the same time as the registration. After that, on the same day, you can receive a company's seal certificate from there.
(Negotiations with real estate owners)
A major issue here is the rental contract procedure with the owner of the property when renting a location where the head office or branch will be opened. Generally, when entering into a rental contract for an Office property, it is common for the lessee to be the company name and the joint guarantor to be the representative.
As described at the beginning, in Japan, it is necessary to attach a seal and seal certificate to the contract. However, If you read carefully so far, you may have noticed this contradiction. The flow of the procedure until the attachment of this seal certificate will be returned upstream like a turbid river.
【Drawing the flow to make it easy for you to understand】
(Necessary items in parentheses)
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Action Content
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Conditions necessary to carry out the above actions
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Arrival Point |
Register the sales office and start your business. |
In order to do so, you need an office rental contract. |
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Make a contract to borrow an office. |
In order to do so, you need to Seal certificate of company and individual required at the time of contract. |
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Register your personal seal to use as a guarantor, and company seal. |
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In order to do so, you need to register your resident registration and company first.
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Resident registration and company registration |
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In order to do so, you have to get a "Status of Residence" for "Medium or Long term" ( "Investor / Business Manager" qualification is appropriate for company management) |
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Start Point |
You have to clear an authorization requirement for "Investor / Business Manager" qualification. |
In order to clear authorization requirement, it is necessary to secure Office.
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(Commentary)
The above table highlights the contradictions clearly. Exactly, a big contradiction arises between the "Arrival point" and the "Starting Point". In fact, there are some other timely contradictory issues.
One of them is opening a bank account. The reason is that when registering a company establishment with the Legal Affairs Bureau, It is necessary to bring together the company's capital to the account of the founder representative and prove it. However, recently, it is also permitted in Internet banking and some overseas bank accounts.
If you want to open a new bank account in Japan, here too, in order to allow the opening of a company's founder account from some bank, it is necessary to prove the resident registration of that person.The proof of resident registration requires proof of "Status of Residence", so the order is upside down here as well.
(Solution for securing sales office)
As mentioned above, there may be a number of troubles in the procedural flow, but above method is the case where the contracting habit of Japan has been followed. If the real estate owner approves, it may be possible to substitute a signature certificate or affidavit issued by an embassy in your country instead of a seal certificate. Furthermore, for office rental, it's best to negotiate a temporary contract until you can confirm your Status of Residence.
By the way, If you want to obtain a "Investor / Business Manager" for work in Japan, two other people except you need to be registered as a founder of company registration. Target persons are limited to people of Japanese nationality or those with a status of residence that is treated almost the same as Japanese.(Please check here)
Moreover, if you want to contract an office lease, there is no doubt that you will be negotiated to add a guarantor from the rental office owner. I guess that's the same thing in any country, but Japanese people are very cautious when making important contracts with foreign nationals. Depending on the size of the rental office, you will usually be required to add one or two Japanese nationals as a guarantor to the contract.
In short, the best solution is to welcome Japanese people who have a good understanding of your business concept as a partner and company's founder at the company's establishment. Finding out the collaborators and gaining great credibility from them is the key to establishing a company.
You should also consult with your real estate broker to facilitate a rental office contract.
【The role of our office with a national qualification called an "Administrative Scrivener"】
The administrative scrivener will do on your behalf for the preparation or submission of the documents necessary for the administrative procedures in Japan, including the acquisition procedure of "Status of Residence", at the same time, as a legal specialist in establishing a company in Japan, we will provide appropriate advice and support your actions on various occasions until you complete the establishment of the company.
In addition, in order to meet the needs of our customers, we also help with finding a property to be used for Office etc. while partnering with a real estate agent. It will also help to communicate details about your situation to the rental owner. Please consult us if you have any problems.
-Thank you for reading-
Please continue to use Working Visa J.apan.