When establishing a company in Japan it is necessary for the founders to make an initial investment of money into the company’s account. This money will ideally be used as capital for the inevitable costs associated with setting up a business, such as renting office space, purchasing supplies and paying salaries. While there is no legally defined minimum amount of initial investment, applications for companies without proper financing will be looked upon poorly.
Often, the amount of initial investment that is appropriate for a company will depend on many different factors such as the company size, location and business among other things. A company starting with only one employee in a very cheap office building may be able to get by with a small initial investment, while a company with big plans and an expensive office may need to have a much larger initial investment.
Determining the appropriate level of initial investment is something that should be discussed with an experienced partner or legal counsel. If you have any questions about starting a business in Japan, please contact our office for a legal consultation.