{"id":35848,"date":"2020-08-27T11:47:20","date_gmt":"2020-08-27T03:47:20","guid":{"rendered":"https:\/\/zegal.com\/?p=35848"},"modified":"2023-03-10T13:46:31","modified_gmt":"2023-03-10T05:46:31","slug":"company-incorporation-japan","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-hk\/blog\/post\/company-incorporation-japan\/","title":{"rendered":"Company Incorporation Step by Step: Japan"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1280\" height=\"830\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2020\/08\/jezael-melgoza-layMbSJ3YOE-unsplash-1280x830.jpg\" alt=\"\" class=\"wp-image-37878\" srcset=\"https:\/\/zegal.com\/wp-content\/uploads\/2020\/08\/jezael-melgoza-layMbSJ3YOE-unsplash-1280x830.jpg 1280w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/08\/jezael-melgoza-layMbSJ3YOE-unsplash-320x208.jpg 320w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/08\/jezael-melgoza-layMbSJ3YOE-unsplash-768x498.jpg 768w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/08\/jezael-melgoza-layMbSJ3YOE-unsplash-1536x997.jpg 1536w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/08\/jezael-melgoza-layMbSJ3YOE-unsplash-2048x1329.jpg 2048w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/08\/jezael-melgoza-layMbSJ3YOE-unsplash-640x415.jpg 640w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/08\/jezael-melgoza-layMbSJ3YOE-unsplash-1024x664.jpg 1024w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/08\/jezael-melgoza-layMbSJ3YOE-unsplash-1200x779.jpg 1200w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/08\/jezael-melgoza-layMbSJ3YOE-unsplash-1920x1246.jpg 1920w\" sizes=\"auto, (max-width: 639px) 98vw, (max-width: 1199px) 64vw, 770px\" \/><figcaption>Photo by Jezael Melgoza on Unsplash<\/figcaption><\/figure>\n\n\n\n<p><span style=\"font-weight: 400;\">This article covers the main points on registering a company in Japan. Read on for details on Japan\u2019s requirements, procedures, and the estimated timeline to register a company.\u00a0<\/span><\/p>\n<h4><b>Minimum Setup Requirements to Register a Company in Japan<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Representative Director &#8211; 1\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Shareholder &#8211; 1<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Official office address for place of business<\/span><\/li>\n<\/ul>\n<h4><b>Registration Timeline\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The entire process of incorporation takes approximately <\/span><b>2 to 4 weeks.<\/b><span style=\"font-weight: 400;\"> The costs are dependent on the type of\u00a0 business structure you decide on and whether you are a foreign entity starting a company in Japan. The process is administered by the Japan Business Registry.<\/span><\/p>\n<h4><b>Step 1: Deciding your Business Structure<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The first step is do consider the type of business structure you would like to adopt for your company. There are 4 main types of structure that Japan businesses can adopt:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Kabushiki-Kaisha (KK)<\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\">Known as a joint stock company, it is a legal entity that allows you to do business either privately or publicly. This is a well established company model in Japan.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Godo-Kaisha (GK)<\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\">Known as a limited liability company, this new structure was only introduced in 2006 and is relatively new in the Japanese business sector.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Gomei-Kaisha <\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\">Known as a general partnership company, the members of the partnership represents the company as well.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Goshi-Kaisha<\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\">Known as a limited partnership, only members with unlimited liability can represent the company.<\/span><\/li>\n<\/ul>\n<h4><b>Step 2: Choose a Company Name and Register your Office Address<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The next step is to have a proposed company name as well as an office address. This is important as it is needed for the Articles of Association documents. If you are a foreigner looking into incorporating a business in Japan, it is recommended that you do so with an external service provider to ensure all processes are fulfilled.<\/span><\/p>\n<h4><b>Step 3: Prepare and Notarise the Articles of Association<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The Articles of Association should be prepared well and detailed, it should include the internal business governance structure and regulations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once the Articles of Association is finalised, it has to be notarised at the Notary Office. This part is only required for Godo-Kaisha companies.\u00a0<\/span><\/p>\n<h4><b>Step 4: Submit the company registration documents<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Once the Articles of Association is finalised, the other relevant documents needed for the company registration ought to be prepared too. Depending on the business structure, the documents required will vary.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Examples of required documents:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Notification of the company&#8217;s seal (inkan)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Letter of Agreement with the appointed directors\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Type of Business Activity intended\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Amount to be paid per share<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Copy of passbook pages to show proof of company\u2019s starting capital\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<h4><b>Step 5: Prepare Company Seals<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">This step can be done in advance in preparation to quicken the process of incorporation. The seals are required for bank transactions, official corporate use and unofficial use.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once all the relevant documents are completed, the company is only successfully incorporated when there is an approval notice from the Notary Public. The approval notice must be made through booking an appointment once all documents are completed.\u00a0<\/span><\/p>\n<h5><b>Japan Corporate Number<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">Once incorporated, each Japanese company will be issued a 13-digit Corporate Number. This Corporate Number can be used for identification and application for different services. The Corporate Number was introduced to streamline the administrative process. It is managed under the <\/span><a href=\"https:\/\/www.houjin-bangou.nta.go.jp\/en\/setsumei\/\"><span style=\"font-weight: 400;\">National Tax Agency<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h5><b>Accounting<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">Japanese companies can select from 4 types of accounting standards to comply with for accounting purposes. The 4 types allowed are Designated IFRS\/ US GAAP\/ JMIS\/ J-GAAP. Accounting records must be filed each fiscal year. Unlike other countries, Japan allows the company to determine the start and end of the fiscal year. Typically, it runs from 1st April to 31st March.\u00a0<\/span><\/p>\n<h5><b>Corporate Tax Requirements<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">The national standard corporate tax rate is at a fixed rate of 23.2%, applicable to companies with share capital exceeding JPY100 million.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, Japanese companies need to pay local inhabitants tax which depends on its office\u2019s location. Another payable tax is the local enterprise tax, payable according to the prefecture.<\/span><\/p>\n<p><b>Annual General Meeting<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The annual general meeting needs to be held within 3 months of the end of each fiscal year.\u00a0<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><b><i>This article does not constitute legal advice.<\/i><\/b><\/p>\n<p style=\"text-align: center;\"><i><span style=\"font-weight: 400;\">The opinions expressed in the column above represent the author\u2019s own.<\/span><\/i><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/register.zegal.com\/\"><b>Start managing your legal needs with Zegal today<\/b><\/a><\/p>\n<p>MORE IN THIS SERIES: Company Incorporation: <a href=\"https:\/\/zegal.com\/blog\/post\/how-to-start-a-business-in-hong-kong\/\">Hong Kong<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-singapore\/\">Singapore<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-japan\">Japan<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-new-zealand\/\">New Zealand<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-australia\/\">Australia<\/a>,<a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-taiwan\/\">Taiwan, <\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-step-by-step-macau\/\">Macau<\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-singapore\/\">, <\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-china\/\">China<\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-singapore\/\">, <\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-philippines\/\">Philippines<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/incorporation-british-virgin-islands\/\">BVI<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-step-by-step-vietnam\/\">Vietnam<\/a>,<a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-thailand\">Thailand<\/a>,<a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-step-by-step-indonesia\/\">\u00a0Indonesia<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-step-by-step-cayman-islands\/\">Cayman Islands<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-united-kingdom\">United Kingdom<\/a><\/p>\n<p><a href=\"https:\/\/zegal.com\/legalguide\/incorporate-your-business\/\"><span style=\"font-weight: 400;\">READ MORE: Documents required when incorporating your business<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":96,"featured_media":37878,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"categories":[14278,133],"tags":[7042,25,12879,11554,16,10307,7707],"usecases":[],"businesstypes":[],"country":[],"class_list":["post-35848","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-management","category-startup","tag-accounting","tag-company-incorporation","tag-corporate-tax","tag-japan","tag-startups","tag-z-syndicate","tag-zegal"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - 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