Case 3: Invest in Earning Building

In today's case, an investor residing in Asia established a corporation in Japan, opened a bank account, purchased a property, and rented it out.

Originally, the owner who liked Kyoto had a few real estate properties in Kyoto city under the names of individual and family. The properties were not investment properties, but a second homes for him and his family when he came to Kyoto.
We decided to put one of these properties up for lease, and since there was commercial property for sale in a good location for investment, he decided to increase the number of properties in Kyoto.

In this scheme, a non-resident investor establishes a corporation in Kyoto, purchases real estate in the name of a corporation, opens a new bank account in the name of the corporation, transfers the lease agreement to the name of the corporation, then receive the rent in new bank account. This time, we have not set directors’ remuneration yet, but it is possible to receive remuneration from corporations, and when traveling to Japan, airline tickets and travel expenses can be recorded as necessary expenses. Also, even if an officer inherits, the real estate in the name of the corporation will not be changed and the inheritance of shares will occur.

First of all, the establishment of a corporation requires a certificate of seal and signature of the investor. In countries with a seal certification system, documents can be prepared at the embassies or notary public offices of the countries of that nationality. You can also create a proof of signature at an embassy in your country. In some cases, a notarial deed may be required for the incorporation. If you have any questions, please contact us individually.

The position of the investor this time is to be the representative director and the investor.
We've registered an extra person as a board member, but having a local resident in the business with will make it easier to open a bank account and complete the necessary paperwork. Therefore, in this case, I am participating in the corporation as an officer. A corporate registration is the same as a real estate registration, where documents are prepared and applied for and registered through a judicial scrivener.

For real estate sales and registration, it does not matter whether you sign a real estate contract after the establishment of the corporation or establish a corporation after the contract is concluded. If you make a real estate contract first, the buyer's name in the contract will be the individual, and we will add "The Seller and the Buyer agree to transfer the buyer's position to a third party after the contract" to the special provisions. By doing so, it becomes possible to transfer the purchaser's position to a corporation that will be established at a later date, and to register the sales contract contracted by an individual in the name of the corporation.

As with the case of registering a earning property in the name of an individual, the procedure of taking over the lease contract is also performed at the same time when the real estate is handed over. The documents include notifying each lessee of the succession to the status of the property, changing the names of various contracts (high voltage power supply, air conditioner lease, internet, elevator inspection, notice to the management association, etc.), and entering into a new management contract. 
At this point, the establishment of the corporation is completed, and all procedures are completed in the name of the corporation.

Also, regarding the opening of bank accounts, it is best to open it through a person who lives in Japan if possible.
Even by the representative director, if not the resident in Japan, the bank refuses the application for opening the account for some reason. There are many reasons for the bank to refuse, such as contact information not being in Japan, communication in Japanese not being possible, and address not being in Japan. Therefore, the easiest  and safest way is to create a new bank account through someone who can conduct a credit check on the account opener conducted by the bank.

If you use this investment scheme that includes the creation of a corporation, you will be able to obtain a loan from a bank, a guest house license at a Japanese corporation, buy or sell a corporation, and get a visa for going and going.

These methods require a trusted partner, so please contact us directly if you are interested ​.