Incorporating in Japan

Incorporating in Japan is complicated by bureaucracy and language barriers. However, Healy Consultants' local expertise ensures that incorporating in Japan is as smooth as possible. Some points to consider when incorporating in Japan include:
1.	Foreign investors considering incorporating in Japan should budget for an incorporation lead time of approximately one month for all entities. It is not necessary for those incorporating in Japan to visit the country to complete this task.
2.	Prior to incorporating in Japan, there is no required starting capital for either a Godo Kaisha (Limited Liability) company or a Kabushiki Kaisha (Joint Stock Company). 5 years after Japan company formation, however, it is compulsory for a company of either type to have increased their capital to ¥10million (US$98,000).
3.	Entrepreneurs incorporating in Japan should note that a head office of a company is liable for any of its Japan branch office’s debts because they are not separate legal entities. For information on Japan branch offices, kindly visit our Japan Branch Office page.
4.	A minimum of one director and one shareholder is needed when incorporating in Japan. Neither of them need be resident in Japan but a resident company representative is required.
5.	Incorporating in Japan in straightforward according to the World Bank's Doing Business 2008 Survey. Japan is positively ranked as the 12th easiest country to do business in. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business.
6.	To meet government requirements when incorporating in Japan, it is necessary to rent local office space.
7.	After incorporating in Japan, it is easy to open corporate bank accounts all over the world. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.
8.	Investors incorporating in Japan should note that a Kabushiki Kaisha is required to appoint an internal auditor.
9.	Additionally, Japan is positively ranked as the world's 18th-freest economy in the Heritage Organistations's 2008 Index of Economic Freedom, which is a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.
10.	When incorporating in Japan, none of the entities require a Japan-resident shareholder. Corporate directors and shareholders are only permitted for a Yugen Senkinin Jigyo Kumiai and Godo Kaisha Company.
11.	Japan is ranked as the 2nd most competitive Asian economy and the 8th most competitive worldwide by the World Economic Forum’s Global Competitiveness Index 2008.
12.	When incorporating in Japan, capital gains are taxed at 30%. Additionally Godo Kaisha’s, Kabushiki Kaisha’s and Japan Branch Offices can be taxed anywhere between 29-41% on all income.
13.	A Japan representative office is not permitted to sell products/services and can only inform customers of the nature and pricing of the company’s services or products. For information about Japan representative offices, kindly visit our Japan Representative Office page.
14.	When incorporating in Japan, there are no restrictions on activities except for a Representative Office, which can only be used to purchase and store assets, conduct advertising campaigns, gather information and conduct market research.
Contact Us
For more information on incorporating in Japan, email email@healyconsultants.com or telephone us in Tokyo at +81 345 801 776.
Back to Japan Company Registration page.

Buy the Japan chapter of Healy Consultants' Asia Business Set Up book, to order call +81 345 801 776 or e-mail email@healyconsultants.com

Singapore Company formation, Dubai Company formation, Offshore Company formation