Among foreign business persons, some of the main concerns about setting up a business and locating an office in Tokyo are expensive office rent, security deposit, and need to find a guarantor. If you are a new entrant to the Japanese market and do not have anyone to rely on, you may have difficulty finding a Japanese guarantor to cosign a lease contract.
- [PROCEDURE FOR MOVING INTO AN OFFICE]
First, collect information on the property and visit the office. If you find an office you like, submit an application along with the necessary documents. Based on the information you present, a background check will be conducted by the building owner. If the contract conditions are agreeable to both the tenant and the owner, you may close the contract after all important matters regarding the office building have been discussed and cosigned by both parties. When closing a contract, the tenant submits Seal Registration Certificate, Certificate Copy of Register of the company, etc. There are circumstances when tenants need to have a cosigner/guarantor. Then, remodeling is done and the office is ready to be furnished. After moving in, you will need to notify and submit the registration of transfer to the local government.
When a foreign company wishes to lease office space, there are various ways to find an office: direct introduction by a real estate company, commissioning an agent in the home country, or requesting brokers to provide property information.
- [PRECAUTIONS WHEN RENTING AN OFFICE]
- When a foreign firm wants to rent an office, in most of the cases, you will need to have a Japanese guarantor. However, depending on the size of your rental office, you may not be required to have one. Another option is to use a Rental Guarantee Company service. Recently, real estate companies have been offering offices with smaller security deposits. So, collecting information on office spaces will help you increase your chances of finding the right office at a lower cost.
- [OTHER RELATED FEES BESIDES THE MONTHLY RENTAL FEE]
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- SECURITY DEPOSIT: Depending on the grade of the building, you are required to pay in advance a security deposit, which is equivalent to twelve months rent.
- COMMON SERVICE FEE: The fee includes utility costs, water expenses, and cleaning expenses.
- KEY MONEY: Key money is a unique Japanese system under which a fee is paid to the landlord to express appreciation for renting you the office. In some cases, you may be required to pay key money
* For more detailed information on market prices of office property, and whether your office is eligible to apply for an investment and management visa, etc., contact BDCT TOKYO