Understand the Jurisdictions Setup Requirement Before Proceed Your Japan Company Formation

Japan Company Formation Japan has been a thriving economy for years, and both locals and foreigners have found great business success in the country. The unique geographical location, natural resources, culture and a friendly environment created by the government are some of the strongest allures for doing business in Japan. If you are in need of Japan company formation services, then we will be glad to walk with you right from the start of the process until you have a fully incorporated business in Japan. It is our duty to assist both Japanese nationals and foreigners register their preferred business entities in Japan so that they can trade freely and make more profits.


Operating in Japan with a Local Entity

There are various legal entities you can register for doing business in Japan as a foreigner. You can choose to operate with a local entity, in which case, the following will be your choices-:

Japanese Limited Liability Company – Godo Kaisha

Just one shareholder can register a limited liability company in Japan. The shareholder can either be a Japanese national or a foreigner. The law, however, demands that the company must have at least one director who is a resident of Japan. At 3E Accounting, we provide nominee services, where we can help you comply with this regulation by availing a resident director for your Japan company formation. The minimum share capital for registering a limited liability company in Japan is JPY 1, but according to the government regulations, this amount should be increased to JPY3 million within five years after the incorporation.

The Japanese Free Zone Company

The other legal entity you may consider for doing business in Japan is the Japanese Free Zone company. However, these entities are no longer popular due to their rising operational costs. Anyway, they still remain an option for interested investors. Investments with this entity normally gear toward export-oriented manufacturing in one of the many free trade zones in Japan, with Okinawa free zone being the most famous one.

Japanese Joint Stock Corporation – Kabushiki Kaisha

Joint stock companies in Japan are nearly similar to limited liability companies in the sense that they require the same amount of minimum capital to start. Also, foreigners can incorporate them so long as one of the directors is a resident of Japan. For those interested in this Japan company formation, it is essential to observe that the setup of joint stock corporations in Japan are slightly different from what you would find in other countries since they are not subject to any audit requirement provided that the following conditions are met-:

  • They are not traded in the stock exchange
  • They don’t have a board of directors and the number of directors is not more than 3
  • Was incorporated with an issued capital of below $4.5 million

Most investors in Japan usually go for joint stock companies when the company owners intend to finance their business operations by raising capital through the Tokyo Stock Exchange or issuing shares to third-party investors.

Limited Liability Partnerships

Foreigners are also free to register limited liability partnerships in Japan. For the incorporation of this entity, there is no minimum capital requirement, and at least one of the partners in the arrangement must be a resident of Japan. Limited liability partnerships in Japan are tax transparent entities, to imply that the taxes are automatically distributed among the respective partners, and such must appear in their corporate/income tax statements. If you already have a partner in Japan, then this is the best Japan company formation worth considering.


Foreign Entities in Japan

Foreigners interested in doing business in Japan may also choose to register the following foreign entities-:

  1. Branch Office – foreign companies, are allowed by law to register a branch of their business in Japan. The scope of the operations of the brand office will depend on the operations of the mother company. It means that a branch office will be free to engage in similar activities as the parent company.
  2. Representative Office – with a representative office in Japan, an investor will be able to promote the businesses of the parent company and also conduct market research. Representative offices are most suitable in Japan when a business wants to “test” the Japanese market before opening a branch or a subsidiary.

Japan Company Formation


How We Can Help You

At 3E Accounting, we have a unique dedication to providing our clients with the best quality Japan company formation services. We know how detailed the process of registering a business in Japan is, and for foreigners, it may sometimes turn out to be tiring and frustrating. This is why we have the best lawyers, accountants and tax experts to help you simplify the process of registering your business entity in Japan. Ours is a comprehensive package that will grant you a hands-free, hassle-free business registration process. Contact us for more information on how we can help you.