Frequently Asked Questions About Japan


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The following are some of the most frequently asked questions about Japan Company Formation:

How long does it take to incorporate a company in Japan?

Are there any restrictions on ownership of a Japanese company?

What is the most popular type of Japanese company for foreign investors?

What is the minimum number of directors required for a Godo Kaisha?

Does a Godo Kaisha require a resident director?

What is the minimum number of shareholder required for a Godo Kaisha?

What are the minimum capital requirements for a Godo Kaisha?

Why use a Kabushiki Kaisha company?

Can a Kabushiki Kaisha have corporate shareholders and directors?

What are the minimum capital requirements for a Kabushiki Kaisha?

What are the tax rates for a Japanese company?

Is a Japanese company subject to an annual audit?

Are there any tax benefits available to a Japanese company?

How long does it take to incorporate a company in Japan?
This depends on the type of company. An LLC (Godo Kaisha) takes one month to incorporate, while a joint stock company (Kaibushiki Kaisha) takes two months.

Are there any restrictions on ownership of a Japanese company?
None. Japanese companies can be 100% foreign owned.

What is the most popular type of Japanese company for foreign investors?
A Godo Kaisha is the most popular type of Japanese company for foreign investors because it is easier to operate than other entities.

What is the minimum number of directors required for a Godo Kaisha?
A minimum of one shareholder and one director is required for a closed Kabushiki Kaisha. In addition, a Japan-resident company representative is also required. For public K.K.s, a board of directors consisting of three individuals is required.

Does a Godo Kaisha require a resident director?
No. However, a resident-company representative is required.

What is the minimum number of shareholder required for a Godo Kaisha?
The minimum number is one.

What are the minimum capital requirements for a Godo Kaisha?
In accordance with the New Company Law in Japan, minimum capital requirements for a Godo Kaisha are 1 Yen.

Why use a Kabushiki Kaisha company?
Because it can either be closed or public, the Kabushiki Kaisha is popular with large organisations.

Can a Kabushiki Kaisha have corporate shareholders and directors?
No.

What are the minimum capital requirements for a Kabushiki Kaisha?
The minimum capital requirement for a Kabushiki Kaisha is 1 Yen.

What are the tax rates for a Japanese company?
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%

Is a Japanese company subject to an annual audit?
Annual audits are optional. However all Japanese companies are required to submit an annual tax return to the Japanese government, with the exception of a representative office.

Are there any tax benefits available to a Japanese company?
Yes. A Japanese company can access double taxation agreements Japan has signed with 56 countries, including Australia, China, France, India, Italy, the Netherlands, New Zealand, Singapore, Spain, Sweden, Switzerland, the UK and the US.

For more information on any of our Japan corporate services, e-mail email@healyconsultants.com or telephone us in Tokyo at +81 345 801 776.

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