Japan Company Formation

Stereotypes of the strong Japanese work ethic and an unwavering dedication to productivity are well known and the impact of its economy can be recognized instantly through the sheer number of huge Japanese brands in our own markets. Having embraced western economic models, the country has a largely deregulated economy with a huge variety of openings for potential investors interested in setting up, licensing or incorporating a business in Japan, from fashion to healthcare.

 

Enterprises with existing Japanese customers can strengthen their client relationships and build new customers with a lucrative presence in the country. The Japanese government has recognized the lack of FDI (foreign direct investment) in the nation’s economy and offices have become more supportive of overseas investors interested in starting a business in Japan.

 

There is also a growing perception that foreign companies have a more performance-orientated culture and subsequently the labour market has become more mobile, with high caliber employees now easier to source. Costs such as office rental have also fallen, with prices around half of what they were in the economic boom of the 1980s.

The new Japanese Corporate Law has made it a lot easier to set up a company in Japan.

 

INCORPORATION

 

Registration in Japan is an 8-stage process. This is as follows:

 

        1. Have a seal made – this takes 3 days and costs approximately 20,000 JPY. Obtain a copy of registry and a registration certificate of the company’s seal. Once done a bank account can be opened with the companies name.
        2. Submit a copy of the certificate of seal registration to the Ministry of Justice. This takes 1 day and costs approximately 400 JPY.
        3. Registration with the Legal Affairs Bureau. This takes 1 to 3 weeks and costs approximately 60,000 JPY.
        4. Notify the tax office of the incorporation of the company, opening of a payroll office and apply for an approval blue tax returns. This takes 1 day.
        5. Notify the tax office of the commencement of business. This takes 1 day.
        6. Submit employment regulations and start of business and labour insurance notifications to the Labour Standards Supervisory Office. This takes 1 day.
        7. Apply for health insurance and public welfare pension with the Social Insurance Office. This takes 1 day.
        8. Apply to the Public Employment Security Office for employment insurance and accident compensation insurance. This takes 1 day.