Company Formation in Japan

Empowering Your Business in Japan: Comprehensive Financial and Regulatory Services for Seamless Company Formation in Japan

We are a full-service financial and regulatory services company, providing sound and credible financial advice to the needs of your business structure pertaining to company formation in Japan. Japan offers various benefits in the form of tax rebates, lesser compliances, favourable business conditions, new-age technological infusion, and an overall incentivized entrepreneurial atmosphere from the government. Enterslice is your one-stop destination to fulfil all your business needs required for company formation in Japan. Our comprehensive service packages are tailored to your requirements and designed to make your company incorporation process smooth and hassle-free. Scroll down to learn more about what we offer.

Doing Business in Japan

Known as the nation that lives in the future, Japan is a technological and cultural hub of the world. With a young population and professionally driven workforce, Japan is known for its high business standards and pristine quality of living. A world leader in Automobiles, electronic goods, nano-technology, and financial services, Japan enjoys healthy trade relations and witnesses a sizeable volume of imports/exports among its trade partners. Setting up your company in Japan can be a gold mine for your venture and even help you solidify a strong international presence due to the country's global trade and exchange network. We at Enterslice are at your service to provide your business structure with the guidance and direction required to start it in Japan. You can reply at Enterslice to be your trusted partner in the journey.

Why is Japan an ideal location for your business?

Ample business opportunities

Japan has numerous business opportunities that are available to foreign investors to invest in. You can consider company formation in Japan in the form of an import-export business, setting up a production plant, or simply starting a representative office in Japan by fulfilling some very minimal statutory requirements.

No minimum capital Requirements

To set up a company in Japan, you are not required to invest any paid-up capital in your business. This would help immensely if your venture is small or in the pilot stages. You can set up your company with an amount as low as JPY 1 as well. Further, business structures in Japan are fairly streamlined and easy to incorporate as well.

Entry routes are easy

Japan has a very liberal and open-market policy that allows foreign direct investment without much hindrance. With minimal licensing requirements and a stable economic climate, company formation in Japan shall be a fairly easy process for small and medium - size business structures.

Types of companies you can form in Japan

Limited Liability Company (LLC) (Godo – Kaisha)

A Limited Liability Company offers a simple internal business structure to it’s owners and limited liability of all its owners in respect of contribution to share capital and liability towards the company. Company formation in Japan in the form of Godo Kaisha (GK) can be formed by the international investor without the requirement of a Local resident as well.

General Partnership Company (Gomei-Kaisha)

In a general partnership company, the members or shareholders are absolutely liable for the profits and losses of the company. A Gomie Kaisha is mandatory to have at least 2 members for its incorporation and can be incorporated without much effort, capital, or Paper works requirement as well.

Limited Partnership Company (Goshi-Kaisha)

An LLP is ideal for small businesses that do not have high capital infusion and broad-based shareholding patterns. It is incorporated as a partnership between the members and can be easily dissolved upon mutual agreement of eh parties. For the purpose of formation of a Gosi Kaisha, you are required to have a resident as ana authorized representative of the Company.

Joint Stock Company (Kabushi Kaisha)

A Joint Stock Company can be set up through only one director /shareholder and a minimum share capital of JPY 1 only as well. An advantage of setting up a Joint Stock Company in Japan is that the shareholders are safeguarded from personal liability. A Joint Stock Company is ideal for setting – up an enterprise for a particular purpose/project and can be wound up later with minimal expenditure

Partnership

Partnerships in Japan are of two types – General (Ippan Kyodo Keiei) and Limited Partnership (Yugen Kaisha). In a General partnership, the partners or shareholders distribute the profits and losses of the company equally, whereas, in a Limited Partnership, the partners are liable to the profits and liabilities of the company in proportion to their shareholding. This type of company structure is ideal if you are looking to start a small company with a select group of people managing the company's affairs.

Representative Office (Chuzaiin Jimusho)

Representative offices are ideal if your primary objective is not to carry out any commercial activity but only to carry out market research or establish a presence in Japan. A Representative Office is not required to be registered with the Legal Affairs Bureau and enjoys exemption for Corporate Income tax as well.

Branch Office (Shiten)

A branch office is an extension of your enterprise in Japan. It is used to carry out commercial activities and acts as your official business representative in the country. To set up a branch office in Japan, you must nominate a resident and a local address as your company's registered office in Japan. There can be a maximum of 2 members, with one being a resident of Japan.

Procedures to set-up your Business in Japan

Selecting the Company Name

Our Team at Enterslice would help you assess the availability of your company's desired name by obtaining approval from the Legal Affairs Bureau, Ministry of Justice. Once the Bureau approves the availability of the name, you can use that in respect of your entity in Japan.

Preparing required Documents to be filed with the Bureau

To file for an application with regards to Company formation in Japan with the Legal Affairs Bureau, you are required to prepare your company's statutory Documents. We can help by providing drafting services for the Memorandum of Association, Articles of Association, LLP/ Partnership deed, and other Documents, which are your company's charter Documents.

Submission of Documents to the Bureau

After the charter Documents for company formation in Japan are drafted and notarized by our team, we shall proceed to file the Documents with the Bureau and pay the requisite registration fees on your behalf.

Company seal

Once the Documents for company formation in Japan are filed, we shall proceed to have the seal of your company prepared and registered with the local registry by ordering and paying the requisite fees for the same.

Tax Certificate

We shall apply with the Tax Office and Tokyo Tax Bureau to obtain a tax certificate for company formation in Japan. Tax registration is necessary for opening a bank account, claiming tax benefits, and filing annual returns for your entity in Japan.

Business Licenses

Based on your preferred business structure in Japan, we shall file to obtain a valid industry license with the concerned Government Departments and Regulatory Authorities so that you can carry out your desired business activity in Japan. Though several activities are exempted from licensing requirements, you are required to obtain a valid industry license for several business structures in Japan.

Bank Account

You are required to open a bank account with a local bank to receive money for your company's paid–up capital. We have tie-ups with several banks and NBFCs in Japan and can open a bank account for your company in no time, with minimal fees.

Employment and HR Permits

For the employees working in your company in Japan, you are required to obtain valid social security and insurance Labour welfare licenses for compliance with Labour and HR regulations of the industry. We can assist you in obtaining the required permits and making statutory filings and returns with the Labour Department and other concerned offices for the purpose of company formation in Japan.

Benefits your Business can avail in Japan

Developed Infrastructure and transit facilities

Japan has a highly developed and modernized urban as well as rural infrastructure comprising railroads, expressways, smart cities, airports, ports, and wireless connectivity. Japan has consistently been ranked highly by global indexes for its electricity and power transmission, public transportation and transport network. Your business would enjoy high levels of growth due to ease of mobility and accessibility to resources cost-effectively.

Stable Political, Climate

The state government in Japan is very particular about catering to the needs of global businesses and corporations; their trade and mercantile laws are structured in a way that incentivizes foreign investment in Japan. Low corruption and bureaucracy make Japan an ideal destination where u can focus on your business without worrying about external factors. Due to transparency and low corruption practices among the government departments, you would not face difficulties in obtaining the required permit from the statutory bodies.

Easy to manage Logistics and Transit

Being a centrally-located nation in the South Pacific, Japan has a number of international airports and large seaports that allow the transit of goods from and into Japan to be easier and quicker. Initiating Import and Export orders is a fairly quick process, taking not more than 5-10 days to generate an invoice and subsequent approval of transit. All this is possible due to Japan's strong diplomatic relations with neighboring countries and robust business-oriented culture.

The tax regime in Japan

Taxes in Japan are applicable to your business, depending on the type of business activity, business structure and paid–up capital your entity has. In Japan, The Corporate Income Tax (CIT) is charged on the profits earned by the company at the rate of 20-35%. If your company’s paid–up capital is JPY 100,000,000 or less, you would be charged Standard Enterprise Tax and Local Corporate Income Tax, whereas, in the event of your Paid- capital exceeding the threshold, you would be liable for Size-based Enterprise Tax as well. Apart from CIT, businesses are required to pay other taxes and accesses as well, such as Consumption Tax (a variation of VAT in Japan), charged at the rate of 10% above paid-up capital of JPY 10,000,000, Property Tax, Local Enterprise Tax, withholding tax, etc., One striking feature about business in Japan is the nature and volume of taxes applicable on the business structure of enterprises, both local and foreign. The tax registration, taxpaying and filing process can be very cumbersome and complex and requires a lot of careful professional diligence. Our tax experts at Enterslice ensure that your tax obligations are taken care of with ease- from tax registrations to annual return filings, all covered by our expert team so that you don't get bogged down with the excessive compliance requirements and carry out your desired business activity hassle -free.

What are the key Documents required at the time of company formation in Japan?

Charter Documents of the Company and Personal Details

Enterslice helps you draft and notarise the charter Documents required for company formation in Japan. The Memorandum of Association, LLP Deed/shareholders agreement, ID proofs of directors, passports and address proofs, business structure information and registered address of the company. Also, we help in identifying local residents to be named local directors/shareholders and submit details of the same with the Legal Affairs Bureau for verification in relation to company formation in Japan.

Details of Corporate Bank Account

In order to open a bank account in Japan, we would assist you in opening an account with a local bank and making an application to the concerned local bank by attaching all the necessary IDs and incorporation Documents with the application form, along with a power of attorney. We also assist in receiving paid-up capital in your bank account through money transfer services.

Business License

At Enterslice, our specialized compliance and regulatory services would assist you in obtaining necessary approvals and permits from the concerned regulatory authorities and Government Bodies according to the business structure of your enterprise.

Tax Registration

The National Tax Agency is responsible for tax registration and collection in Japan. A tax registration would help you avail yourself of several tax rebates and ease of registration while setting – up your company in Special Economic Zones (SEZs) or tax-exempted Prefectures of Japan. Our tax experts at Enterslice would make the required filings with the concerned Tax Department and obtain the tax identification number on your behalf.

Special Economic Zones and Exclusive Economic Zones

Japan has a vast portion of its maritime boundaries designated as Exclusive Economic Zones (EEZs), accounting for a large portion of cross-border trade and economic exchange. The government has provided sizeable tax exemptions and tariff reduction benefits for company formation in Japan, particularly in these free zones. The government is also endeavoring to relax licensing requirements and administrative controls in these free zones so that foreign direct investment can be diverted and the economy of these free zones can receive a growth surplus and ease company formation in Japan. Additionally, the Japanese government has been developing the social and commercial infrastructure of these Special Economic Zones to streamline them in accordance with international business standards. The Okinawa Special Economic Zone is Japan's largest and only International multi-purpose Free Zone, with a special focus on green-field development and maritime preservation. Businesses incorporated in these Zones receive tax holidays on customs and income taxes as well as various other reporting and licensing requirements. At Enterslice, we mold our specialized incorporation and advisory services to your needs in a manner that allows you to benefit from the available state incentives most efficiently. Our team would assist you in providing crucial advisory support relating to tax registration, capital structure section, statutory filings, regulatory approvals, business licenses and other corporate formalities. Our dedicated team will be there to assist you 24/7, assisting you with each and every business query related to business structure and company formation in Japan.

Why should you trust our services?

Enterslice is a pioneer of startup advisory and Virtual CFO Services Provider with a commitment to deliver services to our clients at par excellence. We are proud of our strong and trusting clientele. Having advised over 1000 businesses around the globe, our services are highly recommended and widely commended. Our team of highly proficient and skilled experts are proficient in their domains and would position your business in such a manner that you comply with all the necessary compliance requirements of Japan in the most cost-effective manner while meeting all the statutory requirements timely. Our unique business intelligence services, such as Virtual CFO financial, audit analysis system, and corporate advisory services interface, are designed to cut on both time and cost and help you focus on your business while we take care of the ancillary requirements in the way of company formation in Japan.

How do you choose your Business Structure?

Selecting the right business structure for your company in Japan from all the available options can be challenging. While a Limited Liability Partnership is beneficial if you wish to keep your business operations limited and retain control over a few key people of the company, a private limited company can help you obtain statutory licenses easily if your business activity falls within the ‘regulated activities' category. On the other hand, a sole proprietorship helps you save taxes and avails you of state benefits available to small-scale industries in Japan. At Enterslice, our professionals provide dedicated advisory support to your team and ensure that your choices are best suited for your growth. We provide a complete forensic and analytical analysis for your company to identify all possible risk areas and work out the best possible solution for your company formation in Japan needs.

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Challenges to Company Formation in Japan

Complex Taxation System

Despite being a business-friendly nation, Japan faces the evil of excessive taxes and complicated tax-paying procedures. It takes a considerable amount of time and effort to manage tax planning for companies in Japan. However, due to several local incentives and exemptions available to investors, tax rates in Japan are in moderation. Enterslice would ensure that you do not get entangled in your company's extraneous compliance rut by letting our tax advisors prepare a tax roadmap for the purpose of Company Formation in Japan.

Language Barrier

Since English is not the preferred language in Japan, local communication can become a challenge.The Document filing procedure with the Legal Affairs Bureau entails a tedious process of translating Documents from the local language to Japanese, and there are always possibilities of errors and misfiling. Our legal experts at Enterslice would provide you with a translated version of your incorporation Documents and file them on your behalf with the requisite to ensure there are no patent lapses on your end while undergoing company formation in Japan.

Bureaucratic Challenges

Company formation in Japan is a major challenge due to the fact that there are several levels of approvals and permits, based on your preferred business structure, that need to be met before one can move ahead with the Incorporation process. Also, liaisons with local authorities and offices can be a challenge due to the language barrier and tough competition from potentially competing businesses. Enterslice helps you overcome all major challenges in your business journey and ensures that your dream business sets -foot in Japan effortlessly.

How our services are a class apart

Customer-centric approach

We know that there is no one-size-fits-all -all to your business needs. Every enterprise has its own goals and objectives and requires a customized approach to achieve them. At Enterslice, our sole objective is to provide you with the best possible set of services that match your entrepreneurial requirements and streamline your long-term financial goals in the process of company formation in Japan.

Dedicated Professional Support

Our 24x7 professional support system would assist you anywhere, anytime you face an issue in your going concern. Our experts are skilled and experienced in providing quality advice beyond which you can rest assured you would not require any assistance in the process of Company formation in Japan.

Competitive price bands

Our services may be cost-efficient, but we never compromise on quality delivery. Our cost-effective services and retainer packages compare to any other player in the market and deliver value for money. You can learn more about the price quotes of our professional services by scrolling below