If you are interested in opening a company in Japan, our experts in company formation, who specialize in forming all types of companies, can assist you during the entire process. There are several types of companies available for incorporation that present different advantages for investors.
| Quick Facts | |
|---|---|
| Types of companies | Limited liability company (LLC) known as Godo Kaisha (GK); Stock company; Partnerships (limited or general). |
Secretary needed | Not Required |
Can I register my business in Romanic characters? | YES |
| Time frame for the incorporation | 2 to 4 weeks |
| Corporate tax rate | For all and Medium-Sized GKs (taxable income ≤ 8 million JPY): 15% on the first 8 million JPY For Companies with Income above 8 million JPY: 23.2%. |
| Dividend tax rate | 20.42% in case of resident companies |
| VAT Rate | 10% standard rate; 0% and 8% reduced rates ; *the rates herein include the combined national and local taxes. |
| Audit of Financial Statements for an LLC in Japan | Not required |
| Do you supply a Registered Address/Virtual Office? | YES |
| Compliance check for up to 2 shareholders | € 450 |
| Is bookkeeping necessary for an LLC? | YES, mandatory |
| Provision of the Nominee Representative | EUR 610 per month / EUR 7,320 annually |
| Provision of Registered Address (mandatory) | EUR 375 per month / EUR 4,500 annually |
| Does the company need a local address? | YES, foreign investors can also set up offshore companies in Japan. |
There are several types of companies available for incorporation that present different advantages for investors. Our team of company incorporation agents in Japan can help businessmen open any type of company in this country.
What are the main types of companies in Japan?
The main types of companies in Japan are corporations and partnerships.
- Joint stock companies and limited liability companies are preferred corporate forms, while those investors who share similar business goals prefer the general partnership.
- The limited liability partnership is a convenient business form for those investors who require the limited liability protection, as in the case of a company, but still wish to operate under a partnership.
Please read a quick overview of starting a business in Japan by reading the infographic below:
What are the main characteristics of companies in Japan?
The following requirements must be complied with when opening a company in Japan:
- A limited liability company in Japanis a type of company suited for small and medium-sized businesses.
- The members are liable only to the extent of their contribution to the company’s capital.
- Unlike the joint stock company, all the members of the company may represent it until a manager is appointed. Their contribution can be made in cash, but also in non-cash assets.
- It’s mandatory that all the company’s members must be in favor of a certain decision to make it applicable.
- A “Godo Kaisha” may be reorganized as a joint-stock company if all the company’s members agree with the decision.
- All companies in Japan are subject to observing the accounting, filing, and auditing requirements.
If you want to set up a company in Japan, we invite you to watch the following video about the company incorporation procedure in this country:
What are the main features of the Limited Liability Company (LLC) in Japan?
The “Godo Kaisha” (GK), is the Japanese equivalent of the limited liability company in which the members are only liable to the extent of their contributions to the company’s capital. The GK is simpler and may be used for smaller or start‑up operations.
Below you can find the main features of Godo Kaisha:
- Registered address – the company must have a local, physical address in Japan. P.O. boxes are not accepted;
- Director/ Members – while having a Japan-resident director is not required, we suggest at least 1 Local Director/executive member (our Japan specialists can assist you with that).
- Shareholders – at least 1 Shareholder, not required to be Local.
- Share Capital – no Legal Minimum Capital, but for credibility and bank: usually at least ¥500,000 – ¥2,000,000 is recommended (and for visa purposes: usually 5,000,000 yen).
- Secretary – it is not required.
What are the company formation steps in Japan?
Our team lists a set of mandatory steps for company creation in Japan:
- Finalizing the order of the company by completing the forms for the company’s structure and the related persons/entities involved, along with the supporting KYC;
- Settlement of balance for the formation of the company;
- Statutory documents sent for execution by the persons/entities involved, along with the Certificate of Incorporation of the company;
- Upon receipt of the original signed statutory documents, the corporate documents will be delivered to the client in electronic and original form along with the Certificate of Incorporation.
Must I appoint a resident director for my company in Japan?
While having a Japan-resident director is not required, we suggest at least 1 Local Director/executive member (our Japan specialists can assist you with that).
This is advisable because the bank account opening process and the communications with the authorities are more flexible if the company has at least one local director.
What information must be included in the Articles of Association?
The Articles of Association are the most important documents to be prepared when opening a company in Japan, no matter the industry it will operate in. These must contain the following information:
- Information about the shareholders and their shares in the Japanese company;
- The company’s trade name, legal address, the object of activity, and the purpose of establishment;
- Information about the directors of the Japanese company (names and addresses);
- Information about the payment of the dividends and distribution of shares;
- The rules related to managing the company and other special provisions.
It should be noted that the Articles of Association must be prepared in accordance with the type of company established.
Our experts in company formation in Japan can help businessmen with the process of drafting important documents necessary in order to open a company in Japan, such as the Articles of Association.
What are the costs of forming an LLC in Japan?
Our general fee for the formation of a Limited Liability Company (LLC) is EUR 8,700 and includes the following:
- Company Formation and completing all relevant procedures;
- Preparation of all statutory documents;
- Submitting the Annual Return for the first year;
- Liaising with the relevant Authority Bureau to successfully incorporate the company.
- Incorporation to TAX Authorities;
- Bundle the set of documents once incorporation is completed.
Are there post-incorporation costs?
Yes. The corporate management and administrative services fee during the first year is EUR 1,180 and includes the following services:
- Compliance Calendar Management.
- Statutory Compliance & Corporate Secretarial Support.
- Shareholder and Capital Administration (Preparation of allotment documents).
- Document Safekeeping & Company Records.
- Handling and forwarding official correspondence and legal notices.
- Governance support.
- Annual General Meeting (AGM) or written resolutions in lieu.
- Director resolutions.
- Maintenance of statutory registers.
Our team provides company registration services in Japan. Please contact us for more information and prices.