Company registration in Japan

Company registration in Japan

Company registration in Japan – this issue is due to the politically and economically stable Asian market, which is increasingly attracting entrepreneurs from all over the world with the prospects of successfully conducting world trade and bringing their business to the international level.

And it is traditionally considered prestigious to occupy a worthy niche in the global market of Japan, one of the largest financial centers in the world.

Japan’s economy is highly developed, strong and stable. In terms of GDP, the country ranks 3rd in the world ranking, second only to the United States and China.

Japan is an island state, and it is the favorable geographical location at the intersection of transport hubs between the United States and China that makes it so promising in the context of business and investment.

Japan is the undisputed leader in the IT industry, in the production of electronics and cars; attractive for international trade, transportation, logistics, supplies of equipment and components.

Company registration in Japan is always profitable and very beneficial for international business activities. The advantages of entering this market are obvious:

  • strong and stable economy;
  • high standard of living and industry;
  • high GDP indicator;
  • relatively low taxes;
  • almost perfect infrastructure, transparent legal system, low crime and corruption rates;
  • developed trade relations with China, the USA and the states of Southeast Asia;
  • lack of currency control and requirements for the residence of persons;
  • for foreign entrepreneurs – safety and favorable conditions for doing business on a par with Japanese citizens.

But when registering a company in Japan, you need to be ready not only for a radically different mentality, but also for rather strict tax rules.

The state is known for its strict regulations on businesses with foreign investment and high taxation requirements for both resident and non-resident businesses.

What should you know about doing business and registering a legal entity in the land of the rising sun?

DOING BUSINESS IN JAPAN

The most common organizational and legal forms of opening a company under Japanese law are:

  • joint stock company (Kabushiki Kaisha);
  • limited liability company (Godo Kaisha);
  • a branch (shiten) of an external parent firm.

The most popular and demanded form of doing business in Japan is Kabushiki Kaisha, an analogue of JSC. This is due to a number of preferences, limited liability of investors, the advantages of financing and a high level of trust from citizens.

However, registration of a joint stock company can be beneficial and convenient only for representatives of large businesses. The minimum capital is $ 100,000.

For owners of medium-sized businesses (enterprises with a registered capital of up to $ 30,000), the most optimal form of company registration in Japan is Godo Kaisha, known as LLC.

But the segment of small business is most profitable to make a choice in favor of shiten and to be represented on the Japanese market by branches, in which the minimum amount of capital can be any.

Kabushiki Kaisha (AO) in Japan can be opened as:

incorporation of a joint stock company (shares are directly owned by shareholders);
incorporation of an open joint stock company (shares are sold to attract investors).

Please note that for each of the methods there are different packages of required documentation, and the procedure for registering a legal entity has some differences.

MORE ABOUT REGISTRATION OF A COMPANY IN JAPAN

As we said, the process of starting and doing business in Japan is not easy and simple.

To save time and money, avoid unnecessary bureaucratic red tape and make mistakes, you will need experience in legal, economic and accounting spheres.

So, the only correct solution for those wishing to register a legal entity in Japan is to seek help from specialized companies that professionally provide comprehensive services in this jurisdiction.

When submitting documents to the registration authority, the package must contain a “certificate of attachment of the seal” of the representative director.

If the founder of a joint stock company is not a resident of Japan and does not have a certificate of registration of a foreigner, then he will not be able to obtain a “certificate of seal application”. In this case, the representative director signs the papers with his signature.

And keep in mind that each time a signature is provided, a certificate of certification must be attached to it, issued by a notary in the territory of the state of which the founder or representative director is a citizen.

COMPANY REGISTRATION . LAWS AND REGULATIONS

The main regulatory legal acts that regulate the registration of business in Japan by non-residents of the state are as follows:

The Law “On control over the implementation of foreign economic activity and foreign trade”;
Commercial Code and Antitrust Law;
Intellectual Property Rights Law

MEASURES TO MINIMIZE STARTING CAPITAL REQUIREMENTS

In Japan, there is a Law on Support for Small and Medium Enterprises, which regulates the relaxation of requirements for the minimum authorized capital. In addition, the Law “On Assistance in New Business Creation” was revised.

So, since 2003 it has become possible to bypass the restrictions. The conditions under which a joint-stock company or LLC can be incorporated with a capital of one yen in the Japanese market are as follows:

You will need to submit a notification to the Bureau of Economics of the region in which the registration of the legal entity will take place and obtain the required document. The latter will need to be attached to a pre-assembled package of documents.

If the company does not meet the above requirements for the minimum initial capital within five years from the date of its formation, its organizational and legal form will be changed or the company will be liquidated.

Shareholders or co-founders will not earn profits until the minimum capital requirements are met.

Such a company must disclose its financial data.

The accounting department of the company must compile quarterly, annual financial reports and provide declarations to the tax service. Contact us for more information.

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