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Establishing a Company in Japan

people sitting on chairs beside their desks in an office 1170412 scaled - Establishing a Company in Japan

It is easy to set up a company in Japan. There are no minimum capital requirements. There is no residency requirement for a directors and your company can have all non-resident directors.

The most popular types companies being established are Kabushiki Kaisha (KK) called a join-stock corporation in English, and Godo Kaisha (GK) called a Japanese LLC in  English.

The KK is a full-fledged corporation with standard corporate features such as shares, shareholders, directors, limited liabilities.

The GK is a hybrid of a company and a partnership. Internally, it works as a partnership. But externally it works as a limited liability corporation where partners are protected from the company’s liabilities.

Costs 

A KK is more expensive to setup than a GK. A KK requires a notarized articles of incorporation that costs 50,000 yen plus the higher registration tax of 150,000 yen.

A GK is cheaper to set up. You aren’t required to have your articles of incorporation notarized by a notary public, and the registration tax is only 60,000 yen.

Fiscal year

You are free to set your fiscal year. It can start which ever month you like but it has to be one year or less from inception. December 31st and March 31st are the most popular days for the fiscal year end in Japan.

Because most accountants and tax consultants are very busy during the month preceding December 31st and March 31st, you may want to choose another month to end your fiscal year. This will allow for more time to consult with you accountant.