Company/Office Establishment

The Process of Setting Up an Office

First, where do you start? ♪

Many people may wonder what to do first after deciding to set up an office.
For those who are not sure where to start, we have summarized the process of setting up an office.

  • 1. Make a business plan

    When opening an office, the first thing you need to do, regardless of the industry, is to make a "business plan".
    You are not obliged to submit it to anyone, but if you are not clear about why and what you are aiming for when starting your own business,
    you will not succeed in the future.

    The purpose of your office establishment, the vision you are aiming for, and how you will make money. That is what the business plan clarifies.

  • 2. Estimate the "money" required for opening a business

    Once you have made a business plan, you need to calculate the costs required in the first year to realize that plan. Include the expenses that are necessary before you start making sales (such as purchases and rent for the store or office), and estimate the working capital carefully.
    Depending on the industry, it is advisable to have 3 to 6 months of working capital ready. If you do not have enough funds, or if you need to invest in equipment, consider borrowing.

  • 3.Decide on the name of your office or company

    You need to decide on the name of your office or company. If you want to make your office successful, naming is very important. It is better to choose a word that has a catchy sound and is easy to remember, or a name that clearly shows "what your business is".

  • 4.Decide on the capital and raise the funds for opening a business

    In the case of corporate establishment, the minimum capital system has been abolished by the enforcement of the new Company Law.
    Under the previous Company Law, 10 million yen of capital was required for establishing a stock company, and 3 million yen of capital was required for establishing a limited company.
    However, now you can establish a stock company even if the capital is only 1 yen.

    However, be careful, as in some industries and businesses, the amount of capital may equal to trust.

  • 5.Perform the establishment procedures

    Once you have prepared the business plan, trade name/corporate name, capital, and funds for opening a business, you can finally start the procedures. The documents and procedures required are completely different depending on whether you are a sole proprietor or a corporation, so be careful.

Which is more advantageous,
a corporation or an individual?

Many of you may be wondering whether to become a sole proprietor or a company. There are advantages and disadvantages to both sole proprietorship and corporation, but objectively comparing social credibility, tax aspects, etc., it seems that there are more benefits to becoming a corporation.
However, once you incorporate your company, you will not be able to easily close your business, so you will need to be prepared to "develop this office for a long time".