For a venture company that has just launched, office relocation is an important event that can determine the trajectory of the business. The key to success lies in finding the right partner—one that can handle everything from property search to office design and network infrastructure.
Here, we introduce the key points venture companies should focus on when selecting a real estate company for office relocation, along with the relocation procedure.
Key Points to Watch for When a Venture Company Relocates an Office
To make an office relocation successful, you first need to choose the right type of office for your company and make decisions with your future business plan in mind.
Decide on the Type of Office
There are three office types: leased offices, rental offices, and coworking spaces, each differing in cost, flexibility, and convenience.
Leased Office
A leased office is a space secured through a rental agreement. Since you have exclusive use of a room in a building, it's easier to gain client trust and you have the freedom to customize the interior and office design. However, in addition to a security deposit, key money, and monthly rent, you'll need to invest in infrastructure such as OA equipment and internet connections.
Rental Office
A rental office comes equipped with office furniture such as desks and cabinets, as well as an internet connection. Since furniture and facility usage fees are included, startup costs are lower compared to a leased office. Shared spaces may be partitioned or private, and some rental offices allow corporate registration.
Coworking Space
A coworking space offers an open-plan environment similar to a café or library. You can use any available spot freely and interact with people from outside your company, which can create new business opportunities. It's the most affordable option, but some locations don't allow mail receipt or corporate registration.
Key Points to Keep in Mind During Relocation Planning
Meeting Rooms
Venture companies frequently hold meetings for new projects and business expansion. In rental offices and coworking spaces, meeting rooms are often shared or reservation-based, so consider meeting frequency, headcount, and cost when choosing.
Recruitment
To enhance recruitment effectiveness, key factors include a prime central location, office atmosphere, and a high-freedom communication environment. Many job seekers place importance on commute convenience and the office environment.
Future Business Plan
By forecasting future business growth and staff increases and building a medium-to-long-term business plan, you can reduce the number of office relocations and better predict costs.
What Should Be Done Before Office Relocation?
Thorough preparation is essential for a successful relocation. Confirm in order what needs to be done—from clarifying objectives to arranging construction and restoring the premises.
Clarify the Purpose of Relocation
Common reasons for office relocation include:
- Business expansion
- Operational efficiency improvement
- Office environment improvement
- Flexible work style adoption
- Corporate image enhancement
- Establishing a new base
A clear purpose makes finding the new property, designing the layout, and choosing office furniture smoother. Designating a dedicated team or person in charge will make things even more efficient.
Selecting the New Office
When selecting a new location, consider the following points:
- Location and access from the nearest train station
- Surrounding environment (government offices, banks, convenience stores, etc.)
- Property price range, security deposit, key money, and rent
- Facilities such as air conditioning, electrical capacity, and internet connection
- Usable floor space and room layout
- Availability of parking or bicycle storage
Confirm the Termination Notice Period
Termination notice is generally required 6 months before the termination date. Complete restoration of the property by the move-out date and confirm the conditions for the return of the security deposit in advance.
Arrange Construction Early
Interior and electrical work for the new office can take 1–2 months depending on scale. Once the layout and office design are finalized, arrange this promptly.
Don't Forget Restoration Work
Restoration means returning the space to its original condition at move-in; normal wear and aging are not included. Confirm with the owner whether contractors are specified and whether the security deposit can be applied.
Procedures Required for Relocation
- Notification letters to business partners
- Changes to phone line and internet
- Mail forwarding procedures
- Procedures for leased equipment
- Notification to financial institutions and accounting offices
- Announcement on company website
- Address changes on company seals, business cards, contracts, and invoices
What Procedures Are Required After Office Relocation?
Various notifications are required even after the relocation is complete. Many have application deadlines, so start early.
Address Changes for Bank Accounts and Credit Cards
Bank account changes can be processed online, but required documents vary by method. Don't forget to also update the address for corporate credit cards.
Legal Procedures
Head Office Relocation Registration
The head office relocation registration application must be submitted within 2 weeks of the relocation date to the Legal Affairs Bureau with jurisdiction over the new head office location. For branch offices, the deadline is 2–4 weeks depending on jurisdiction.
Workers' Accident and Employment Insurance Procedures
Notification must be submitted to the Labor Standards Inspection Office and Hello Work within 10 days of the day following the address change. Note that procedures differ for single-application and dual-application businesses.
Health Insurance and Employee Pension Procedures
Submit the notification to the pension office with jurisdiction over the previous address within 5 days of relocation.
Tax Office and Payroll-Related Changes
Submit the "Notification of Changes in Items" to the tax office with jurisdiction over the previous address as promptly as possible. The deadline for the payroll payment office relocation notification is within 1 month after relocation.
Key Points to Prioritize When Choosing a Real Estate Company
Finding a trustworthy real estate company is the single most important factor in a successful office relocation. Focus on these three points.
Does the Company Have Office Brokerage Experience?
A real estate company experienced in office brokerage will have access to properties not publicly listed and relocation know-how. Check their track record and choose a company with high specialization.
Does the Company Have an Extensive Property Database?
Choosing a real estate company with information on various office types—designer offices, entire-building rentals, and furnished offices— increases the chances of finding your ideal property.
Can the Company Share Your Future Vision?
It's important to find a partner who can share not just your requests but also your purpose and vision for the relocation. Avoid companies that rush contracts due to sales quotas, and choose one that will work with you to solve challenges.
Conclusion
Office relocation for a venture company is a major project requiring many legal procedures in addition to property search. Finding a reliable property management partner before the move will enable a smooth transition. Choosing a real estate company with strong office brokerage experience and the ability to share your future vision will lead to success for your company's future.
Frequently Asked Questions (FAQ)
Q. What type of office is best for a venture company?
It depends on the business phase. In the early stages, it's common to keep costs down with a coworking space or rental office, then transition to a leased office as the business grows.
Q. How long does office relocation take?
Since termination notice is required 6 months in advance and interior work takes 1–2 months, it's ideal to start preparing at least 8–10 months before the planned move.
Q. What is the deadline for the head office relocation registration?
The head office relocation registration must be submitted to the Legal Affairs Bureau within 2 weeks of the relocation date. For branch offices, the deadline is 2–4 weeks depending on jurisdiction.
Q. What is the most important factor when choosing a real estate company for office relocation?
The most important factors are extensive office brokerage experience and the ability to share your company's future vision. Choose a partner who provides advice on solving challenges, not just property introductions.
