Fast business set up solutions in Japan

Because Japan is a closed economy and all business documents are written in Japanese, registering a new business is both challenging and time consuming.

Using their preferred corporate structure, our multi-national Clients should expect to legally conduct business in Japan within 3 months.

As a work around solution, CLA Consultants Group provides our multi-national Clients two fast business set up options:

Acquiring a dormant clean ready-made Japan company with an already approved dormant corporate bank account (known as a turnkey solution); or
Incorporating a new company using CLA Consultants Group professional, passive nominee shareholders and directors and bank signatory (known as a Fast Nominee Solution ).

With these two-fast businesses set up solutions, our multi-national Clients can expect to legally conduct business in Japan within 4 weeks. Refer to more detailed information below:

Comparing business set up strategies

Questions	Turnkey solution	Fast Nominee Solution	Register a new business
Our recommended solution in order of preference?	1	2	3
How soon can our Client legally issue sales invoices to customers?	3 weeks	1 month	3 months
How soon can our Client legally sign sales contracts with local customers?	3 weeks	1 month	3 months
How soon can our Client recruit local and expatriate staff?	3 weeks	1 month	4 months
Estimated total cost of this engagement?	US$26,850	US$38,500	US$18,560
Estimated paid up share capital to be injected over the coming 2 months?	US$1	US$1	US$1
How soon can we supply our Client a bank account number?	2 weeks	1 months	3 months
Physical office required to be leased during company registration?	Yes	Yes	Yes
Must apply for tax numbers?	Yes	Yes	Yes
Must apply for license for regulated services?	Yes	Yes	Yes
How long to appoint our Client’s preferred corporate structure?	2 months	2 months	–
Total engagement period; to finish the engagement?	3 months	3 months	3 months

Advantages and disadvantages of a fast business set up solution

No.	Advantages	Nominee company	Shelf Company
1.	Within 1 month, our multi-national Clients can legally conduct business in Japan;	Yes	Yes
2.	Our Client does not have to travel to Japan for company registration and multi-currency corporate bank account opening;	Yes	Yes
3.	Our Client can immediately recruit staff to help complete business set up;	No	Yes
4.	The entity is already registered for tax, including payroll, corporation tax, sales taxes;	No	Yes
5.	Government administrative tasks\delays are tackled after business set up, rather than before company registration;	Yes	Yes
No.	Disadvantages	Nominee company	Shelf Company
6.	It is an expensive solution;	Yes	Yes
7.	It is necessary to spend 4 weeks changing the business activity and change company name;	No	Yes
8.	It is necessary to spend 2 months appointing our Clients’ preferred shareholders and directors;	Yes	Yes
9.	It is necessary to spend 1 month appointing our Clients’ preferred bank signatory;	Yes	Yes
10.	It is necessary to spend 1 week to ensure the entity is clean and dormant;	No	Yes
11.	Government foreign investment approval is required?	No	No
12.	The company might have had business operations in the past, which makes the handover process more complicated.	No	Yes

Steps to purchase a fast turnkey solution

No.	Steps	Week
1.	CLA Consultants Compliance Team receives the required corporate and personal due diligence (click link) information from our Client;	1
2.	Our Client signs CLA Consultants Group engagement letter and returns the original to our Singapore Head office. Our Client settles our fees;	1
3.	Our Client confirms by email the planned corporate structure and e-mails the required due diligence;	2
4.	For our Client, CLA Consultants Group prepares a tailored detailed project plan;	2
5.	CLA Consultants Group provides our Client i) a company name and number ii) a company office address and iii) a corporate bank account number and iv) a tax number;	3
6.	CLA Consultants Group emails our Client a template customer sales invoice complying with local commercial laws and includes i) a company name and number ii) a company office address and iii) a corporate bank account number and iv) a tax number;	3
7.	Our Client can inform customers and suppliers; issue invoices for selected products and services, sign legal contracts and hire local staffs in Japan. CLA Consultants Group will inform our Client if some business activities require additional approval and licenses from the Government;	4
8.	If required, CLA Consultants Group will apply for i) a specific regulatory license and ii) an import export license. There can be additional Government requirements to secure the same including higher paid-up capital requirements;	5
9.	CLA Consultants Group prepares and emails our Client the required documents to appoint them as directors and shareholders and bank signatory including i) the legal share allotment and legal share transfer ii) the change of company address and iii) the lease agreement in Japan (if required);	6
10.	Our Client reviews and signs the documents in front of the Japan Embassy Consular at our Client’s country of residence and courier return the same;	7
11.	CLA Consultants Group and our Client attends a meeting with the Japan bank to appoint our Client as the new bank signatory and submit the corporate bank package containing: Signed appointment of bank signatory forms; Client’s passport copy and proof of address; Japan company kit; Other Client due diligence.	8
12.	Following a review of the corporate bank account signatory change application, the bank(s) may revert to CLA Consultants for additional information. CLA Consultants and our Client provides the same in a timely manner;	9
13.	There is a 50% chance that the bank will ask the new bank signatory to travel for a one-hour interview. As always, CLA Consultants will aggressively negotiate for a travel exemption, asking the bank to just perform a Skype or phone conversation with the bank signatory. Depending on Client nationality, sometimes we are successful and our Client does not have to travel to Japan;	10
14.	The bank approves the appointment of the new bank signatory and will courier internet banking documents (login, password etc.) to CLA Consultants office or to our Client directly. If sent to us, we will activate internet banking on our Client’s behalf;	12
15.	CLA Consultants Group will submit an application of company corporate structure changes to the Department of Economic Development (METI);	12
16.	Following a review of the structure change application, METI may revert to CLA Consultants for additional information. CLA Consultants Group and our Client provides the same in a timely manner;	16
17.	METI approves the corporate structure changes and issues the amended Business License and corporate documents, showing the new shareholder and legal representatives;	20
18.	Immediately after, CLA Consultants Group emails our Client i) amended Business License and ii) new M&AA showing the appointment of the new foreign shareholders and directors;	20
19.	CLA Consultants Group will courier the following to our Client: Company kit containing original Japan corporate documents; The banking kit; CLA Consultants Customer Satisfaction Survey.	21
20.	CLA Consultants Group successfully completes our Client’s engagement.	21

Steps to register a Fast Nominee Solution

1.	CLA Consultants Compliance Team receives the required corporate and personal due diligence (click link) information from our Client;	1
2.	Our Client signs CLA Consultants Group engagement letter and returns the original to our Singapore Head office. Our Client settles our fees;	1
3.	Our Client confirms by email the planned corporate structure and e-mails the required due diligence;	2
4.	For our Client, CLA Consultants Group prepares a tailored detailed project plan (click link);	2
5.	CLA Consultants Group supplies our Client due diligence re our temporary professional, passive nominee shareholders and directors, and bank signatory;	3
6.	CLA Consultants Group registers a national LLC with our temporary professional, passive nominee shareholders and directors and injects the paid-up share capital to a temporary multi-currency corporate bank account;	5
7.	CLA Consultants Group registers our Client company for tax;	6
8.	If required, CLA Consultants Group will apply for i) a specific regulatory license and ii) an import export license;	6
9.	CLA Consultants Group emails our Client a template customer sales invoice complying with local commercial laws and includes i) a company name and number ii) a company office address and iii) a tax number. Our Client can legally conduct business in Japan;	6
10.	The Japan bank supplies corporate bank account numbers to CLA Consultants Group, while we act as temporary bank signatory;	10
11.	CLA Consultants Group prepares and emails our Client the required documents to appoint them as directors and shareholders and bank signatory including i) the legal share allotment and legal share transfer ii) the change of company address and iii) the lease agreement in Japan (if required);	11
12.	Our Client reviews and signs the documents in front of the Japan Embassy Consular at our Client’s country of residence and courier return the same;	12
13.	CLA Consultants’ Group PLC and our Client attends a meeting with the Japan bank to appoint our Client as the new bank signatory and submit the corporate bank package containing: Signed appointment of bank signatory forms; Client’s passport copy and proof of address; Japan company kit; Other Client due diligence.
14.	Following a review of the corporate bank account signatory change application, the bank(s) may revert to CLA Consultants for additional information. CLA Consultants and our Client provides the same in a timely manner;	15
15.	There is a 50% chance that the bank will ask the new bank signatory to travel for a one-hour interview. As always, CLA Consultants will aggressively negotiate for a travel exemption, asking the bank to just perform a Skype or phone conversation with the bank signatory. Depending on Client nationality, sometimes we are successful and our Client does not have to travel to Japan;	16
16.	The bank approves the appointment of the new bank signatory and will courier internet banking documents (login, password etc) to CLA Consultants office or to our Client directly. If sent to us, we will activate internet banking on our Client’s behalf;	17
17.	CLA Consultants Group will submit an application of company corporate structure changes to the Department of Economic Development (METI);	18
18.	Following a review of the corporate structure change application, METI may revert to CLA Consultants for additional information. CLA Consultants Group and our Client provides the same in a timely manner;	22
19.	METI approves the foreign shareholder to purchase shares in the local company and issues the amended Business License and corporate documents, showing the new shareholder and new director;	26
20.	Immediately after, CLA Consultants Group emails our Client i) amended Business License and ii) new M&AA showing the appointment of the new foreign shareholders and directors;	26
14.	Following a review of the corporate bank account signatory change application, the bank(s) may revert to CLA Consultants for additional information. CLA Consultants and our Client provides the same in a timely manner;	15
15.	There is a 50% chance that the bank will ask the new bank signatory to travel for a one-hour interview. As always, CLA Consultants will aggressively negotiate for a travel exemption, asking the bank to just perform a Skype or phone conversation with the bank signatory. Depending on Client nationality, sometimes we are successful and our Client does not have to travel to Japan;	16
16.	The bank approves the appointment of the new bank signatory and will courier internet banking documents (login, password etc) to CLA Consultants office or to our Client directly. If sent to us, we will activate internet banking on our Client’s behalf;	17
17.	CLA Consultants Group will submit an application of company corporate structure changes to the Department of Economic Development (METI);	18
18.	Following a review of the corporate structure change application, METI may revert to CLA Consultants for additional information. CLA Consultants Group and our Client provides the same in a timely manner;	22
19.	METI approves the foreign shareholder to purchase shares in the local company and issues the amended Business License and corporate documents, showing the new shareholder and new director;	26
20.	Immediately after, CLA Consultants Group emails our Client i) amended Business License and ii) new M&AA showing the appointment of the new foreign shareholders and directors;	26
21	CLA Consultants Group will courier the following to our Client: Company kit containing original Japan corporate documents; The banking kit; CLA Consultants Customer Satisfaction Survey.	27
22	CLA Consultants Group successfully completes our Client’s engagement.	27

Conclusion

If our multi-national Clients’ wish to legally conduct business as soon as practical, then I recommend one of the above fast business set up solutions;
If our multi-national Clients’ wish to minimize business set up costs, I recommend registering a new LLC with your preferred corporate structure and bank signatory.

Contact us

For more info on company registration, please contact our expert directly:

Mr. Petar Chakarov
Senior Manager, Sales & Business Development
Get in touch