Doing Business in the United Kingdom VS Japan – A Comparison
Entrepreneurs choosing between the United Kingdom and Japan face two highly developed, globally respected economies—each offering different advantages. The UK is well-known for its digital incorporation, international market access, and legal transparency. Japan, on the other hand, boasts a strong domestic economy, advanced technology infrastructure, and a reputation for quality and innovation.
3E Accounting notes that the United Kingdom is often preferred for its ease of doing business and rapid company setup. Japan attracts businesses focused on advanced manufacturing, R&D, and Asia-Pacific consumer markets.
The United Kingdom: Politically stable, legally transparent, and supported by robust business finance support programs.
Japan: Highly developed economy with advanced infrastructure and a strong rule of law, but corporate culture and language can be barriers for foreigners.
Taxation
The United Kingdom: Corporate tax rate is 25%. Relief is available for R&D, and capital gains exemptions exist in certain cases.
Japan: Effective corporate tax rate is around 29.74%, which includes national and local corporate taxes. Incentives are available for innovation and regional investment.
Japan: Incorporation requires notarised articles of incorporation and government filings, often taking 2–4 weeks. Language and procedural complexities make professional help necessary.
Japan: Operational costs are high in major cities like Tokyo, but are justified by a highly skilled workforce and efficient transport systems.
Access to Markets
The United Kingdom: Extensive trade agreements and international connectivity make it an excellent launchpad into Europe, North America, and beyond.
Japan: A strategic base for Asia-Pacific operations, with strong trade links to China, Korea, ASEAN, and global tech supply chains.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor
United Kingdom
Japan
Business Environment
Stable, digital, legally transparent
Advanced, formal, culturally unique
Corporate Tax Rate
25%
Approx. 29.74%
Capital Gains Tax
Applicable with exemptions
Applicable with few exemptions
Ease of Incorporation
Fast, online, low barrier
Slower, procedural, language-dependent
Business Costs
Scalable depending on region
High in urban centres, efficient overall
Market Access
Global trade routes and FTAs
Asia-Pacific trade and tech networks
Benefits of Choosing 3E Accounting
When it comes to starting a business in the United Kingdom, navigating the legal and administrative processes can be complex without the right support. That’s where 3E Accounting comes in. As a trusted partner for company incorporation, we provide tailored solutions for entrepreneurs and investors looking to establish a strong business presence. Whether you need help with company registration or expert guidance on setting up businesses in the UK, our experienced team ensures a smooth and efficient process.
The United Kingdom is better for businesses targeting global markets with quick, digital setup. Japan suits firms focused on tech, manufacturing, and the Asia-Pacific region.
The UK applies a 25% corporate tax rate. Japan’s effective corporate tax rate is around 29.74%, including local taxes.
The UK offers fully online company registration in as little as 24 hours. Japan’s process takes 2–4 weeks and involves notarised documents and translations.
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.