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.

1. ①Foreign companies planning to set up 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

	Subsidiary（KK）	Subsidiary（GK）	Branch	Representative office
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
Bank account	Available	Available	Available	Unavailable
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.

2. ②Individuals intending to start a business in Japan

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
Tax treatment Accounting	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.

Our Strengths

1. Explanations in Plain English

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.

2. Personal & Friendly Support

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.

Procedures

1. Contact

Please use our contact form to inquire about our services and inform us of your business plans in Japan.

2. Consultation

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.

3. Engagement

Should you agree with our fee quotation based on our initial meeting, we will send you a service agreement and invoice with payment instruction.

4. Preparation

Once your payment is confirmed and we receive a signed agreement, we will begin to prepare your documents.

5. Ongoing professional support

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.

Fees