In order to officially register a company in Japan, the founder of the company must pay a registration fee at the Legal Affairs Bureau. This fee is calculated based upon the initial capital of the corporation. Therefore, a corporation with an initial capital of one hundred million yen will require a larger registration fee than a company with an initial capital of ten thousand yen.
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.
Incorporating a company in Japan is relatively easy but it may be difficult under certain circumstances for some foreigners living in Japan to be a founding member of a corporation. The two main difficulties that foreign nationals will encounter when establishing a side business in Japan are restrictions in their employment contract at their main job and the restrictions of their Japanese visa.