Can a single foreigner establish a company?
Under the Companies Act, a single foreigner can incorporate a joint stock company or a limited liability company. In particular, foreigners who are already living in Japan on a work visa, dependent visa, or as college student might have a Japanese address and a Japanese bank account, so the procedures for incorporating a company can proceed smoothly. In addition, due to a recent amendment to the law, it is now legally possible to incorporate a company in Japan with only one foreign representative director residing abroad.
However, it is difficult for a foreign resident to incorporate a company in Japan by himself/herself. The problems that foreign residents face when incorporating a company in Japan are the lack of a Japanese bank account and problems with real estate contracts.
Lack of a Japanese bank account (to establish a company, you must have a personal account)
If you have a personal bank account from studying in Japan in the past, you can use it. However, if you do not have a personal account, you will not be able to establish a company because there is no account to which you can transfer your capital. Even if you enter Japan as a tourist, banks will not allow you to open a personal account for foreigners who do not have a proper status of residence in order to prevent money laundering. If this is the case, a cooperator is often needed to prepare an account to invest 5 million yen. The cooperator temporarily joins the board of directors and accepts the investment, but will cease to be a board member when the individual obtains a regular Business Manager visa and arrives in Japan.
Real estate property for an office (store) cannot be contracted
To establish a company in Japan, a company address must be established. In order to obtain a Business Manager visa, the home address and the office address must be separate. Therefore, when a foreigner establishes a company, he/she must secure an office (store). In order to sign a real estate lease contract in Japan, a Japanese seal registration certificate and ID card are usually required. Some properties require a joint guarantor, although some properties may use a guarantee company. A Japanese seal registration certificate cannot be obtained unless you have an address in Japan. Foreigners residing abroad have only a passport as their own identification, so it is not easy to pass the tenant screening process in terms of real estate rental customs.
Please refer to our Business Manager Visa web page.
