If you are considering or preparing to start a business in Japan as a company, in most cases you will first need to establish a company or branch. It can be a seemingly overwhelming, confusing and anxious time setting up a business in a different country and often in a different language. Our office has more almost 20 years’ experience working with foreign entities, corporations and personal businesses to establish a Japanese representation, and we can support you in Japanese or English.
Things our office can do for you:
At first it is important to decide what type of business you would like to setup. Generally there are 3 types of businesses in Japan. If opening a branch office at least one representative must have an address in and be a resident in Japan. The said address requirement does not apply to a representative director (or a representative executive officer) of a Kabushiki-Kaisha (Co., Ltd.), and a representative member (a person performing duties of such member, if such representative is a corporation) of a Godo-Kaisha (LLC) (on or after March 16, 2015).
| Types of company in Japan and related legal differences | |||
| Type of the company activity | Kabushiki-Kaisha (joint-stock corporation / Co., Ltd.) |
Godo-Kaisha (limited liability company / LLC) |
Branch office |
| Capital | 1 yen or more*1 | 1 yen or more*1 | No capital |
| Number of investors | 1 or more | 1 or more | - |
| Liability of equity (toward creditors) | Limited to the amount of equity participation | Limited to the amount of equity participation | Unlimited |
| Transfer of equity participation share | May be transferred freely in principle. Stipulated in articles of incorporation where approval is needed for the transfer of shares. | Unanimous approval of equity participants (members) required | No equity participation share |
| Number of executives (Director / Manager) required | Required Representative/s: 1 or more* | Required Representative/s: 1 or more* | Representative/s who reside in Japan: 1 or more* |
| General meeting of shareholders (members) | In principle, must be held every year | Not required | Not required |
| Taxation of profits | Taxed according to profits of joint-stock corporation and profits allocated to shareholders | Taxed according to profits of Godo-Kaisha and profits allocated to participants | Income arising within Japan is in principle taxed |
| Registration tax / fees (Dependent on the amount of capital and number of directors etc.) | 400,000JPY to 500,000JPY | 300,000JPY to 350,000JPY | 250,000JPY |
Please refer to the same steps as “Establishing a Kabushiki-Kaisha (Joint-Stock Corporation)”, however step 4 regarding “Notarization of joint-stock corporation’s articles of incorporation by Japanese notary” is not necessary for a Godo-Kaisha.
Please contact us, your first consultation is free.