Japan corporate formation is a secure, long-term and tax efficient way to conduct global business. Important points for entrepreneurs to note when considering Japan corporate formation include:

Japan corporate formation projects a positive image to clients, suppliers and investors. Japan is perceived as a highly regulated jurisdiction with a stable government and economy and a highly developed infrastructure.

Global investors who choose Japan corporate formation benefit from Japan's transparent legal system and constitution which strongly supports the rule of law and protection of intellectual property rights. For example, Japan is bound by the terms of the World Trade Organisation’s (WTO) Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement.

Japan corporate formation is governed by the New Companies Law of Japan 2006 and company incorporation is controlled by the Legal Affairs Bureau of the Ministry of Justice.

Key processes for Japan corporate formation are done through th e Ministry of Justice and involve: registration and administration, monitoring of corporate compliance and disclosure standards, regulation of statutory audits by public accountants. The government fee to register a Japanese limited liability company (also called a Godo Kaisha) is US$5,570.

Japan is a high tax jurisdiction, a key disadvantage of Japan corporate formation. A Kabushiki Kaisha is liable to corporate tax of 22% on income up to 8 million yen, and 30% on income over 8 million yen. In addition, companies need to be aware of the complex structure of corporate tax burdens in Japan. The special local corporate taxes and corporate inhabitant taxes vary with the different prefectures in Japan. As such, the total tax burden that a firm has to pay may range from 30.80%-44.79%. That said, Japan corporate formation allows investors access to the wide range of double taxation agreements Japan has signed with 49 countries, including the US, China, Germany, France, the UK and Canada.

Furthermore, Japanese tax laws are complicated. A Japanese limited liability company is required to prepare annual financial statements complying with Japanese Financial Accounting Standards. The financial statements accompany an annual corporate tax return submitted to the National Tax Agency by 31 March. Because of the complexity of Japanese accounting and tax laws, most foreign investors engage the professional services of qualified accountants and tax advisors.