Japan company registration
20 March, 2014
Japan is considered the worlds 3rd largest economy, behind the US and China. With a developed market for electronics, machine tools, ships, chemical substances, and motor vehicles, Japan attracts many foreign investors in these sectors. Doing business in Japan has the following advantages:
1. For Japan company registration of an LLC, only on director and one shareholder is needed, the minimum share capital is US$1 for Japan business formation and there is no need to travel.
2. There are no restrictions on the repatriation of capital.
3. A Japanese LLC enjoys the benefits of 58 international double taxation treaties thus minimizing withholding tax for a Japan business setup.
4. Japan boasts 3 free zones offering a companies no custom duties and flexible labor laws. The three free zones are Nagasaki, Niigata, Okinawa and Tokyo.
5. It is the second largest economy in the world, and is Asias largest economy with a GDP per capita of US$44,902, thus massive domestic consumer demand.
6. Capital expenditure was USD2.5 trillion in 2012 thus providing business opportunities for multinational services firms through Japan business formation.
Before entering the Japanese market, foreign investors should take into account the following compliance considerations:
1. To meet government requirements, it is necessary to rent local office space for Japan business setup. Some of our Clients request Healy Consultants to provide temporary shared office space until out Client finds their preferred business address following Japan company formation.
2. It is important to note when setting up a joint stock company, an internal auditor must be appointed.
3. Japans company law is complex. Therefore, starting a business in Japan can be time consuming. Furthermore most documents related to Japan incorporation are written in Japanese. Non-Japanese speaking foreign investors face translation costs and waiting times.
4. Cash remittance of more than US$30,000 must be reported to the ministry of finance by multinational firms.
5. The Japanese Government emphasizes that leases cannot be prematurely terminated without having a reason. Therefore, it is difficult to relocate after signing a lease agreement.
6. Following Japanese business registration, monthly, and quarterly financial statements must be submitted to the local authorities.
7. All business activities conducted in Japan receive government approvals, permits and licenses. There is an obligation to register particular products with the government, including food, pharmaceuticals, medical devices, and medicine.
8. All companies in Japan need to register with the Japanese ministry of justice, and all non-Japanese foreign nationals living in Japan have to register with the Japanese Government.
9. The Japanese government encourages a life time employment policy. Therefore, it may be difficult to employ Japanese staff if you do not adopt this policy.
10. For de-registration of resident Japan Company, Healy Consultants will fulfill all the Government requirements, which will take a minimum of 6 months.
For more information about Japan company registration, contact us at firstname.lastname@example.org or +65 6735 0120.
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