Establishing a Company in Japan @ Asia Business Set Up

BUY OUR ASIA BUSINESS BOOK

Download Healy Consultants' Asia Business Set Up book (in PDF format) for US$1000, or contact us for further details.

Forming a Company in Japan

While a Japanese company has limited use as an international trading vehicle (due primarily to high corporate taxes), forming a company in Japan is popular for entrepreneurs who want to conduct business in Japan. Important points to note when establishing a company in Japan include:

Japan ranks as the 15th easiest place to do business in the World Bank’s Doing Business 2010 survey.

Company incorporation in Japan is controlled in the Legal Affairs Bureau of the Ministry of Justice and company law in Japan is outlined in the New Companies Law of Japan 2006.

In accordance with the New Companies Law of Japan, every company is required to appoint a minimum of one director, who can be resident or non-resident in Japan. In addition, the company is required to appoint at least one shareholder.

The most popular legal entity when forming a company in Japan is the limited liability company (Godo Kaisha). The government fee to register a Godo Kaisha is US$5,570.

When forming a company in Japan, the company must increase its share capital from 1 Yen at incorporation to 10 million Yen (US$94,000) within five years.

Japan is positively ranked as the world’s 19th-freest economy in the 2010 Index of Economic Freedom by The Heritage Foundation. The index ranks a country for its financial freedom, protection of property rights, labour freedom, business licensing requirements and freedom from corrupt practices.

Most Japanese businesses do not require any other licenses to operate. However, those operating in the financial services and insurance sectors, as well as those closed to foreign investment (e g agriculture, forestry, fisheries and mining) are required to obtain business licenses.

After forming a company in Japan, it is necessary to prepare annual financial statements and an annual corporate tax return to submit to the National Tax Agency by 31 March each year.

For additional information on forming a company in Japan, purchase our Asia Business Setup book, contact email@healyconsultants.com or call us in Japan at (+81) 345 801 776.

Contact Us

For more detailed information on the economic background to Japan company formation, purchase our Asia Business Setup book, contact email@healyconsultants.com or call us in Tokyo at +81 345 801 776.

Back to Japan Company Formation page