Starting a company in Japan
Who this service is for:
Our service is for non-Japanese speakers who would like to establish a business in Japan.
We are tax and accounting specialists providing services primarily for foreigners and foreign entities operating in Japan.
We are happy to support you, not only setting up your business, but in your future growth and development in Japan.
- ①Foreign companies planning to set up a business in Japan.
- ②Individuals intending to start a business in Japan
When a foreign company establishes a business in Japan, it is important to choose the most effective vehicle for your commercial purposes. There are three types of Japanese entities to consider:
Comparative chart of Japanese commercial entities
|Stated Capital||More than 1 yen||More than 1 yen||N/A||N/A|
|Legal cost for set up||202,000 yen～||60,000 yen～||90,000 yen||N/A|
|Naming rules||Any name||Any name||Same as the HQ||Any name|
|Legal Registration||Necessary||Necessary||Necessary||Not necessary|
|Commercial activity||Allowed||Allowed||Allowed||Not allowed|
|Tax treatment||Tax treatment may vary depending on market capital of the parent company.||Tax treatment may vary depending on market capital of the parent company.||Essentially the same as the KK and GK, however, tax treatment may vary.||In principle, there is no corporate tax liability. *There may be a risk of PE taxation for commercial activities.|
For individuals launching their own companies in Japan, there are two options:
Comparison chart of sole proprietor and company
|Sole Proprietor||Company（KK or GK）|
|Procedure||Submission of application forms to tax office||Necessary legal and tax registration|
|Individual tax return
Fiscal year : January – December
|Corporate tax return.
Any month can be chosen for fiscal year end.
|Carry forward loss||3years （blue tax form）||9years|
|Social Security||Enrollment in Japan’s National Health Insurance and National Pension programs.||Company should enroll all employees and officers in Social Insurance (Health insurance and Employees’ Pension programs).|
|Compensation||Net operating profit at year end.||Director compensation is treated as a deductible business expense.|
*Please note that GK(Godo Kaisha) cannot opt for ‘pass-through taxation’ in the same manner as a US LLC.
Why choose us?
When you set up a business in Japan, it is important to decide which entity is most suitable and how much is capital is required for your business strategy. We can advise you on the best path for your future growth and development in Japan.
- Explanations in Plain English
- Personal & Friendly Support
Our certified tax accountants have considerable experience in rendering international tax and accounting services to foreign firms and foreigners. We can explain everything you need to know according to Japanese law in plain English giving you the confidence you need to expand your business in Japan.
Unlike large firms, we cater to each client with a personal, friendly touch, adapting our service to meet to individual circumstances and needs.
We can provide ongoing support for as your back office for such services bookkeeping, payroll, tax returns and reporting to head offices in English.
- Ongoing professional support
Please use our contact form to inquire about our services and inform us of your business plans in Japan.
We will set up a meeting at our office in Shibuya Tokyo for an initial consultation to discuss how we can support your business in Japan. We are happy to provide a fee quotation for our service.
Should you agree with our fee quotation based on our initial meeting, we will send you a service agreement and invoice with payment instruction.
Once your payment is confirmed and we receive a signed agreement, we will begin to prepare your documents.
Once your business is established in Japan, we can also provide services for payroll, bookkeeping, tax filing, and reporting to the head office in English. We are pleased to provide continuous support for your business.
|Setting up Company:|
|KK(Kabushiki Kaisha)||200,000yen~ + Legal cost(202,000yen~)|
|GK(Godo Kaisha)||185,000yen~ + Legal cost(60,000yen~)|
|Setting up Branch:||200,000yen～ + Legal cost(90,000yen)|