When setting up a business in Japan, it is common for foreign investors to incorporate Kabushiki Kaisha (hereinafter called as “K.K.”) in conformity with Companies Act in Japan.

K.K. could be set up with a minimum of one shareholder, and with a minimum capital amount of 1 JPY. 100% of foreign ownership is allowed. Due to change of regulation effective from March 2015, a requirement for representative director living in Japan has been abolished. In other words, now it is possible for foreign investors to incorporate K.K. with all of representative directors living outside Japan.

Procedure of setting up K.K. is indicated as follows:

•Appointment of the representative director

•Seal Certificate issued by Municipal Office in Japan ※

•Cash transfer of the capital amount

•Preparation of the Articles of incorporation

•Attestation for the Articles of incorporation at Notary Public Office in Japan

•Preparation of company seal

•Application for company registration at Legal Affairs Bureau

※If the representative director doesn't have address in Japan, it is replaced by Signature Certificate of the representative director issued by Notary Public (where is Jurisdictional for his/her Nationality)