Japan Company Incorporation Guide

Japan is the third largest economy in the world, and its people have a very high quality of life, making it one of the world’s wealthiest, most economically developed countries with a high standard of living.

Japan’s service industry, especially banking, finance, shipping, insurance, and business services, accounts for the largest share of GDP and is a world leader. The capital, Tokyo, is not only the largest city and economic center in the country, but also one of the world’s leading financial, shipping, and service centers. In this article, we will introduce the advantages of incorporating a company in Japan, the information required for incorporating a company in Japan, the conditions for incorporating a company in Japan, the process of incorporating a company, and answers to some frequently asked questions of interest to you.

Advantages of incorporating a company in Japan

The main advantages of incorporating a Japanese company include

-Good business environment: Japan has a stable political and economic environment, and the government adopts an open policy for foreign investment, which provides a good business environment for enterprises.

Quality workforce: Japan has a high quality workforce and a culture of attention to detail and quality, making Japan’s workforce world-renowned.

Advanced technology and R&D capabilities: Japan has leading-edge technology and R&D capabilities in many industries, which provide the basis for innovation.

-World-renowned brands: Many Japanese companies have a good reputation worldwide, which can bring business cooperation and market opportunities to newly registered companies.

-Tax incentives: Japan’s tax incentives can provide certain tax breaks and benefits to businesses.

-Simple registration procedures: Compared to some other countries, the procedures for incorporating a company in Japan are relatively simple and require fewer documents, making it easier for companies to register and start their business quickly.

-Convenient financial services: There are several internationally renowned banks and financial institutions in Japan that provide comprehensive financial services and support for businesses.

Documents required for Japanese company registration

-Company name: Provide the company name and English name, and make sure the name is not registered by others.

-Company address: Provide the company’s registered address, either a physical office address or a virtual address.

-Type of company: Determine the type of company, including limited liability company, joint stock company, etc.

-Articles of Incorporation: Provide articles of incorporation that define the scope of operations of the company, the rights and obligations of shareholders and directors, and the issuance and transfer of shares.

-Shareholder and director information: Provide information such as names, addresses, passports or identification of shareholders and directors.

-Registered capital: To determine the registered capital of the company, including the amount of registered capital, payment method, etc.

-Required Permits: Depending on the business area in which the company operates, provide the required permits, such as industry-specific permits, health certificates, etc.

-Information about the person in charge: Provide the name, address, and contact information of the person in charge of the company.

-Financial Statements: Provide the company’s financial statements for the most recent year.

Conditions of incorporation of Japanese companies

1. Company name: The company name must be unique, unregistered by others, and not infringing on the trademark or copyright of others, and can be checked on the Japanese Commercial and Industrial Registration website.
2. Registered address: The company must have a registered address in Japan, either an office address or a virtual address, but must ensure that it can receive company-related mail and notices.
3. Shareholders and Directors: The company must have at least one shareholder and one director. Shareholders and directors may be residents of Japan or abroad, or may be other companies or natural persons.
4. Registered capital: According to the Japanese Company Law, a company must establish a registered capital. The minimum requirement for registered capital is 1 yen, but the actual operation needs to be reasonably determined according to the size of the business and operational needs.
5. Articles of Incorporation: The articles of incorporation are the legal basis for the operation of the company and must specify the scope of the company’s operations, the rights and obligations of shareholders and directors, the issuance and transfer of shares, etc.
6. Tax Registration: The company needs to register with the Japanese tax office and apply for tax registration.
7. Business license: According to the different business sectors, you need to apply for the corresponding business license.

Company registration process

1. Company Name Search.
2. Submit a power of attorney and sign an agreement.
3. Pay the fee and submit the registration information.
4. Registration of Japan Inc. and approval of information.
5. Complete the registration and receive the company file.

Frequently Asked Questions

1. Do I need to pay tax for Japanese companies?

Offshore companies do not have to pay tax, such as local business and business activities tax, if the Japanese company’s profit is less than 8 million yen, will be charged at 40% (corporate tax 22% + local tax); if the company’s profit is more than 8 million yen, will be charged at about 48% (corporate tax 30% + local tax); and monthly tax returns and annual financial statements must be provided, please find a local accountant to deal with.

2. How do I choose a Japanese company name?

Japanese company names are relatively free to choose. The Japanese government allows a company name to include words such as international, group, holding, industrial, investment, college, association, center, institute, etc., regardless of the size of the registered capital, as long as the words are not restricted by the Japanese government; however, you must have a specific business and operation.