Company formation in Japan

When setting up a company in Japan, there are various legal aspects to consider in order to ensure smooth business operations. Japanese companies have different legal forms such as the Kabushiki Kaisha (public limited company) and the Yugen Kaisha (limited liability company).

The choice of company name is important when setting up a company in Japan. This must be unique and must not already be used by another company. It is also advisable to register the name in Japanese characters in order to legally protect the trade mark.

Founders should make sure to apply for all necessary tax documents such as the company tax number and VAT number. They must also ensure that they comply with all legal regulations relating to labour law, environmental protection and data protection.

InterGest Japan advises on legal aspects and provides comprehensive services to ensure that all necessary formalities are completed on time and correctly, and that they comply with legal requirements from the outset.

Companies in Japan can take different legal forms depending on the specific requirements and objectives of their establishment. Common legal forms for company formation in Japan include the Kabushiki Kaisha (KK), the Godo Kaisha (GK) and the Yugen Kaisha (YK).

The Kabushiki Kaisha (KK) is a public limited company that is most often chosen for large companies. It requires a minimum capital of 1 million yen and at least one director and one auditor. The KK offers a clear separation between ownership and management as well as a broader ability to raise capital through the sale of shares.

Godo Kaisha (GK) is a limited liability company that is suitable for smaller companies or start-ups. There are no minimum capital requirements and incorporation is relatively straightforward. The GK offers a simpler administrative structure and greater management flexibility.

The Yugen Kaisha (YK) is similar to the GK, but with certain differences in terms of limited liability and capital. The YK requires a minimum capital of 3 million yen and offers limited liability for the shareholders.

When selecting the appropriate legal form for company formation in Japan, it is important to consider the specific requirements and objectives of the company. The choice of legal form has an impact on liability, the administrative structure and the ability to raise capital.

InterGest Japan supports companies in selecting the appropriate legal form and offers customised solutions that are tailored to individual business objectives.

There are various tax aspects and regulations to consider when setting up a company in Japan. Basically, it is important to know that Japan has a corporate tax system in which taxes are levied on both company profits and dividends. Corporation tax is currently 23.2% for companies with taxable income of over 8 million yen.

Companies in Japan must pay consumption tax (VAT) and local taxes such as business tax. The consumption tax is currently 10%, but can vary depending on the type of service. For business tax, the tax rates are set by local governments and can vary depending on the location of the company.

Another important aspect is the tax regulations with regard to accounting. Companies prepare their financial reports in accordance with Japanese accounting principles (Japan GAAP) and submit them regularly to the tax authorities. They should ensure that they keep all necessary tax documents and records in order to withstand possible tax audits.

InterGest Japan offers comprehensive support for tax planning and tax returns and helps companies to fulfil Japan's tax requirements. This includes tax filings and financial accounting as well as auditing compliance with Japanese accounting regulations.

When setting up a company in Japan, entrepreneurs face a variety of cultural and business challenges that need to be overcome. Japanese business culture is characterised by hierarchical structures, strict social norms and a strong focus on long-term relationships.

An important aspect of starting a business in Japan is choosing the right business partner. In Japan, it is common for business to be based on personal relationships and trust is of great importance. It is therefore advisable to find a local partner who already has an established network.

Formal rituals and etiquette are of great importance in Japan. For example, it is customary to hand over business cards with both hands and look at them carefully before putting them away. Wearing a suit and tie is also expected in many business situations. In Japan, it is unusual to address or discuss conflicts openly. Instead, attempts are often made to find compromises and resolve conflicts in a subtle manner.

Setting up a company in Japan brings with it a variety of cultural and business challenges. To be successful, it is important to understand Japanese business culture and adapt accordingly. However, by selecting a suitable partner, observing formal etiquette and understanding cultural differences, entrepreneurs can successfully gain a foothold in Japan.

InterGest Japan supports companies in understanding the cultural nuances of the Japanese market, successfully integrating into the local business culture and establishing contacts with local partners.

Starting a business in Japan can be a challenging task, but there is support and resources available to help founders succeed. This is true whether it's learning about the legal requirements, raising capital or building a network.

An important resource for aspiring entrepreneurs is the Japan External Trade Organisation (JETRO), which provides information about the Japanese market and helps with setting up a business. JETRO also offers offices in various cities in Japan that serve as a point of contact for foreign entrepreneurs.

Another important organisation is the Chamber of Commerce and Industry in Japan, which gives founders access to a broad network of companies and business partners. The Chamber also offers training courses and seminars to help budding entrepreneurs develop their business ideas.

For start-ups in need of capital, there are a variety of government support programmes and financing institutions that offer financial support. The Japan Finance Corporation (JFC) is one such organisation that provides financing for small and medium-sized companies in Japan.

In addition to these organisations, the Japanese government also offers various programmes and incentives for entrepreneurs who are active in certain industries or invest in certain regions.

Overall, there are a variety of support options for company founders in Japan that can help to successfully realise business ideas. By utilising these options, entrepreneurs can significantly increase their chances of success in Japan.