International entrepreneurs find conducting business in Japan complex.  That said, the Japan External Trade Organisation (JETRO) reported that 83% of foreign-invested firms are experiencing ‘fair’ to ‘booming’ business. Healy Consultants effectively assists with all aspects of Japan company formation. The following information will help you determine if Japan company formation is the optimum corporate structure to fulfill your international business objectives:

Fortunately for entrepreneurs 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$93,000). For more information on a Godo Kaisha, kindly visit our Japan Godo Kaisha page, and for more information on a Kabushiki Kaisha, kindly visit our Japan Kabushiki Kaisha page.

Additionally, Japan is positively ranked as the world's 17th freest economy in the Heritage Foundation's 2008 Index of Economic Freedom, which is a measure of freedom enjoyed in  business, trade, monetary, financial, investment and labour markets.

Entrepreneurs investing in Japan should note that a minimum of one director and one shareholder is needed to complete Japan company formation. Neither of them need be resident in Japan but a resident company representative is required for Japan company formation.

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 Japan business formation start up procedures, time, cost and minimum capital required to start a business. In addition, Japan is positively ranked as the 17th least corrupt country in the world according to the 2007 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.

Following an Japan company formation, 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.

Investors incorporating in Japan can benefit from Japan's reputation as a competitive economy. 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 2007-2008 .

Japan company formation law is complicated and the Japan company formation process is time-consuming.

To meet government requirements for Japan company formation it is necessary to rent local office space.

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.

When choosing to incorporate a company in Japan, it is important to note that a Kabushiki Kaisha must appoint an internal auditor.

By Japanese law, 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.

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.

It can take up to 3 months to secure work permit approval for foreign staff after Japan company formation.

Kabushiki Kaisha - Joint Stock Company. International entrepreneurs should budget for Japan KK set up fees of approximately US$34,630, depending on corporate structure and range of professional services required, including corporate bank account opening, company incorporation and accounting and tax support.

Godo Kaisha - Limited Liability Company. International entrepreneurs should budget for Japan GK set up fees of approximately US$29,630, depending on corporate structure and range of professional services required, including corporate bank account opening, company incorporation and accounting and tax support.

Branch Office - International entrepreneurs should budget for Japan Branch Office set up fees of approximately US$26,470, depending on corporate structure and range of professional services required, including corporate bank account opening, company incorporation and accounting and tax support.

Representative Office - International entrepreneurs should budget for Japan Representative Office set up fees of approximately US$10,370, depending on corporate structure and range of professional services required, including corporate bank account opening, company incorporation and accounting and tax support.

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