Part 1:Basic Rules and Key Considerations for Choosing a Company Name in Japan

Series Theme: Administrative Scrivener’s Guide for Foreign Entrepreneurs on Selecting a Company Name in Japan

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Introduction

One of the first and most crucial steps in establishing a business in Japan is deciding on your company name (referred to as the "trade name" or shogo). The company name represents your business's identity and leaves a lasting impression on clients and partners. However, Japan has specific legal rules and guidelines regarding company names. If you overlook these, you may face issues later. In this article, we’ll explain the basic rules and key considerations from the perspective of an administrative scrivener (gyoseishoshi lawyer).

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1. What is a Trade Name (Company Name)?

A trade name (shogo) is the official name a corporation uses to conduct business. You must decide on a trade name when preparing your articles of incorporation and submit it during the company registration process. Your trade name is a crucial element in building your brand image, so careful selection is essential.

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2. Legal Rules Regarding Company Names in Japan

The Companies Act in Japan sets out clear rules for trade names. Key points include:

① Permissible Characters and Symbols

• Allowed Characters:
  Kanji, hiragana, katakana, Roman letters, and Arabic numerals.
• Allowed Symbols:
  Certain symbols such as "&", "'", ",", "-", and "." (period) are permitted.
  Examples: ABC Co., Ltd., 株式会社山田商事 (Yamada Shoji Co., Ltd.), Global Solutions合同会社 (Global Solutions LLC).

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② Required Elements in the Company Name

• For a corporation, the name must include the type of company.
  • For example, "株式会社" (Kabushiki Kaisha or KK) for a joint-stock company, or "合同会社" (Godo Kaisha or GK) for a limited liability company.
    Examples: 株式会社〇〇 (XX Co., Ltd.), 〇〇合同会社 (XX LLC).

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③ Prohibited Expressions

Certain expressions cannot be used in a company name:

• Offensive or inappropriate terms: Names that violate public order and morals.
• Misleading or confusing names: You cannot register a name that could easily be mistaken for another company, especially if they are in the same business or location.
• Names suggesting a government entity: You cannot use names that imply affiliation with public institutions, such as "Japan Government Co., Ltd." or "Police LLC."

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3. Important Considerations for Foreign Entrepreneurs

① Differences Between Japanese and Foreign Languages

While you can use foreign words in your company name, be mindful of their meaning and connotation in Japanese. A name that seems fine in English might carry an unintended meaning in Japanese.

Example:
The English word "happy" has a positive connotation in Japan, but "close" could imply "closure" or "shutdown," which might be perceived negatively.

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② Pronunciation and Memorability

Choose a name that is easy for Japanese clients and partners to pronounce and remember. Simple, concise names can improve brand recognition and avoid misunderstandings.

Tip:
Consult with an administrative scrivener who can help you select a name that resonates well in the Japanese market.

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③ Importance of Preliminary Research

If your proposed company name is too similar to another existing company, your registration may be denied. Therefore, conducting a preliminary search through the Legal Affairs Bureau or online databases is crucial.

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4. How an Administrative Scrivener Can Support You

Understanding Japanese laws and business customs can be challenging for foreign entrepreneurs. An administrative scrivener can provide the following support:

• Legal review of your proposed company name.
• Assistance in drafting the articles of incorporation.
• Conducting trade name availability searches.
• Advising on strategies to avoid name conflicts with existing businesses.

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Conclusion

Your company name is more than just a label—it’s a fundamental part of your business identity and success. By adhering to Japanese regulations and aligning your company name with your business strategy, you can set a solid foundation for your operations. In the next installment, we will explore “Key Points for Choosing an Effective Company Name” from a practical perspective.

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Next Topic:
“Part 2: Key Points for Choosing an Effective Company Name”