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Registering a business in Japan

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Registering a company in Japan in 2020

The key advantages of setting up a business in this country are the following:

  • Stable developed economy;
  • High level of GDP;
  • Well-established trade relations with China, the USA and the countries of Southeast Asia;
  • Low taxes;
  • A large number of double taxation avoidance agreements;
  • No currency control; 
  • There are no requirements for residence of shareholder.

Business registration – from 4990 €

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Registering a company in Japan is a good option for businessmen, who would like to promote their products/services in this jurisdiction. Since Japan is a closed economy jurisdiction and all documents must be in Japanese, IQD Consulting specialists offer you their services in setting up a business in Japan to facilitate the process.

We also recommend you to read this material. Here are short facts, that should be paid attention to the future founders of Japanese companies.

Main legal forms of companies

To establish a company in Japan, you need to decide on the legal form of your company:

  • a Limited Liability Company;
  • a Joint-Stock Company (JSC);
  • a company in a free zone;
  • a representation.
Limited Liability Company (LLC)

When planning to register an LLC in Japan, you need to know:

  • LLC may be registered with only one shareholder, which may be a non-resident;
  • there must be one director - a resident of Japan;
  • a government approval for foreign owners is not required;
  • a minimum paid share capital is $1;
  • you can apply for government contracts;
  • the average total cost to register an LLC in Japan is $13,325;
  • annual financial statements must be submitted.

It should be noted, that LLC is a good organization for those, who would like to register a trademark in Japan.

NOTE: IQD Consulting team is ready to advise you how to set up a Limited Liability Company in Japan remotely.

Joint-Stock Company (JSC)

Read also:
JSC in Japan is very similar to LLC. She has the following characteristics:
  • may be registered by a foreign shareholder, subject to the appointment of one resident director;
  • a government approval for foreign owners is not required;
  • the minimum paid share capital is $6,000;
  • may apply for government contracts;
  • the average total cost of setting up a Joint Stock Company in Japan is $14,500;
  • annual financial statements must be submitted.

Like the LLC, the JSC is a good choice for those, who wish to register a TM in Japan.

Free zones in Japan

Free trade zones in Japan are an attractive option for those, who wish to register an enterprise in Japan. They offer foreign firms a partial tax exemption and a partial exemption from customs duties.

Features of a company registration in one of free zones of Japan are:
  • a minimum share capital is $50,000;
  • a resident director;
  • the rent office space;
  • a minimum paid share capital is $1;
  • may apply for government contracts;
  • the average total cost of setting up a firm in FZ in Japan is $14,500.
Japanese tax system

Registering a Japanese business entails a preliminary familiarization with the tax system of this jurisdiction.

An income tax in Japan depends on the amount of a taxable profit. It can vary from 22% to 30% (for foreign legal entities is from 29,33 to 84,87%).

Professional assistance

IQD Consulting specialists can provide support in registering a company in Japan. We also draw your attention to the fact, that our specialists can assist in setting up a business in Japan remotely, provide professional support in opening a corporate account in Japan.

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