{"id":6457,"date":"2018-01-22T14:00:44","date_gmt":"2018-01-22T08:30:44","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=6457"},"modified":"2025-06-24T18:42:55","modified_gmt":"2025-06-24T13:12:55","slug":"procedure-company-registration-japan","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/procedure-company-registration-japan\/","title":{"rendered":"Procedure for Company Registration in Japan"},"content":{"rendered":"<p>Japan is one of the most politically stable countries in the world. It is the 3<sup>rd<\/sup> largest country in the world in terms of GDP &amp; 2<sup>nd<\/sup> largest in Asia. Global Financial Centre has ranked Japan as a 5<sup>th<\/sup> best financial center in the world. It&rsquo;s an international financial hub &amp; covets Asia&rsquo;s third largest Stock Exchange.<\/p>\n\n\n\n<ul>\n<li>Major Global Trading platform<\/li>\n\n\n\n<li>Reputable Regulatory environment<\/li>\n\n\n\n<li>Sophisticated business aesthetics<\/li>\n\n\n\n<li>Free Trade regions (Nagasaki, Tokyo, Okinawa)<\/li>\n\n\n\n<li>DTAA&rsquo;s executed with around 100 counties all over.<\/li>\n\n\n\n<li>Hassle free oversees incorporation<\/li>\n<\/ul>\n\n\n\n<p>However, it is an attractive destination for companies willing to invest in Research, Development &amp; Innovation activities (several tax credits are given to such companies). It is ranked highest in the world for PCT Patents applications.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Types of Entities<\/h2>\n\n\n\n<ul>\n<li><strong>JAPANESE LIMITED LIABILITY COMPANY<\/strong>: Popularly known as GODO KAISHA in Japan. It can be registered with 1 <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Shareholder&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A shareholder is an individual or entity that owns at least one share of a company&amp;#039;s stock, granting them partial ownership of the company. This status allows them certain rights, including(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/shareholder\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>shareholder<\/a>, who can be a non-resident &amp; 1 Director who should ordinarily reside in the country. Minimum Investment or capital contribution is 1 UP$ (JPY1). Physical office space is mandatory &amp; details of the same have to be submitted to <a href=\"https:\/\/enterslice.com\/jp\/company-formation-japan\">Japanese Company Registration<\/a>.<\/li>\n<\/ul>\n\n\n\n<p>Within one year of incorporation, they are required to furnish the <a href=\"https:\/\/enterslice.com\/learning\/accurate-financial-statements-critical\/\">Financial Statements,<\/a> to the Japanese Tax Authority.&nbsp; They have an Audit Exception as well (Capital below 4.5 US$ million).<\/p>\n\n\n\n<ul>\n<li><strong>JAPANESE JOINT STOCK CORPORATION: <\/strong>Popularly known as KABUSHIKI KAISHA<strong>. <\/strong>It can be registered with 1 shareholder, who can be a non-resident &amp; 1 Director who should ordinarily reside in the country. Minimum Investment or capital contribution is 600 US$. Physical office space is mandatory &amp; details of the same have to be submitted to Japanese Company Registrar.<\/li>\n<\/ul>\n\n\n\n<p>Within one year of incorporation, they are required to furnish the Financial Statements, to the Japanese Tax Authority.&nbsp; Some Companies have an Audit Exception as well for those entities whose capital is below 4.5 US$ million, not listed on the Tokyo Stock Exchange, having less than 3 Directors. They are popularly known as Closed JSC. However, an Internal Auditor must be appointed.<\/p>\n\n\n\n<ul>\n<li><strong>JAPANESE FREE ZONE COMPANY<\/strong>: An export-oriented manufacturing entity can also be incorporated in Japan region, provided the same is a free trade zone<\/li>\n<\/ul>\n\n\n\n<p>E.g.: Okinawa, Nagasaki, Nigata Free Port etc.<\/p>\n\n\n\n<ul>\n<li><strong>JAPANESE LIMITED LIABILITY PARTNERSHIP: <\/strong>There is no minimum capital requirement. However, one of the partners should be ordinarily residing in Japan. It is ideal for those who have local partners interested in a strategic<\/li>\n\n\n\n<li><strong>JAPANESE BRANCH OFFICE:<\/strong> Local laws of Japan allow setting of the branch office provided it pursues the objects listed in the MOA &amp; AOA of its parent company. They need to appoint a local representative as well to carry on its operations.<\/li>\n\n\n\n<li><strong>JAPANESE REPRESENTATIVE OFFICE:<\/strong> They are set up in order to promote the business of Parent Company for <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Market<\/a> Research &amp; Exploring business possibilities.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Steps in Incorporation of Company in Japan:<\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"720\" height=\"1022\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2018\/01\/Company-Incorporation-in-Japan.jpg\" alt=\"Company Incorporation in Japan\" class=\"wp-image-9068\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2018\/01\/Company-Incorporation-in-Japan.jpg 720w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2018\/01\/Company-Incorporation-in-Japan-211x300.jpg 211w\" sizes=\"(max-width: 720px) 100vw, 720px\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Tax Regime:<\/h2>\n\n\n\n<p>The effective Tax rate for Companies is 30%. The <a href=\"https:\/\/en.wikipedia.org\/wiki\/Corporate_tax\">Corporate Tax<\/a> rate for Companies having paid up capital of more than 100 million JPY is 23.4%.<\/p>\n\n\n\n<p>The standard VAT rate is 8%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Japan is one of the most politically stable countries in the world. It is the 3rd largest country in the world in terms of GDP &amp; 2nd largest in Asia. Global Financial Centre has ranked Japan as a 5th best financial center in the world. It&rsquo;s an international financial hub &amp; covets Asia&rsquo;s third largest [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":89160,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1322,2433],"tags":[1520,51,1519],"acf":{"service_id":"151"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Procedure for Company Registration in Japan Through Enterslice<\/title>\n<meta name=\"description\" content=\"Japan is one of the most politically stable countries in the world. 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