Starting Business in Japan

Information on starting a business in Japan

Let’s assume that you are going to start your business in Japan. Even if you are not living in Japan, you can make a company in Japan.

This company includes Joint stock company, Limited liability company.

If you hope to engage in Non-profit making activities in Japan, you can incorporate NPO or Ippan shadan Hojin.

And depending on business category, you need to obtain license in Japan ➡

By incorporation of company, you can apply for several kinds of tax deduction.

(Tax merit of incorporation of company in japan ➡)

If you are contemplating whether to operate your business by incorporation of company or as sole proprietor, you can look at this page.
(Which is better, Incorporation of company or Sole proprietor for tax ? ➡ )

And by incorporation of company, your liability can be limited.

You can not ensure if your business will not make damage toward third person.

If you operate your business as sole proprietor and cause damage toward third person, you need to compensate the damage by your personal money.

On the other hand, if you operate your business by company name, liability of your company is not your liability.

Main purpose of incorporation of company is to protect shareholders from prospective liability.

Moreover, depending on customers, they will demand you to make legal entity. 

Incorporation of company will be beneficial to acquire trust from customers.

If customers of your business are also companies, it will be better that you incorporate a company.

Generally you can make Stock company (Kabushiki kaisha=KK company ) or limited liability company (Godo kaisha = GK).

As for tax purpose, there is not difference between KK company and GK.

(There are differences between General Incorporated Association and KK, GK, LLC) 

As for process to make it and management, there are several differences. 

Necessary process to make KK company is easier than that of GK.
(Outline of making stock company in Japan ➡)

And Necessary expense to make KK company is higher than GK by about 150,000 yen.
(Cost to make stock company in Japan ➡)

(Comparison to make stock company and LLC ➡)

As a shiho-shoshi lawyer, I can be an agent to incorporate a company in Japan.
(You can not hire a Gyoseishoshi for this process)

Amount of my fee to incorporate Limited Liability Company is 70,000 yen or more.

If you hope to start Fund Business with SPC in Japan, you can refer to this page.
➡ SPC and Fund Business in Japan.

And amount of my fee to incorporate Joint Stock Company is 80,000 yen or more.

In order to start and manage a business in Japan, Marketing is more important than law and tax information.
At first you can think of marketing strategy. As a business operator, you will think about Marketing in Japan.
So you can refer to this page “Marketing Strategy in Japan“.

If unfortunately you hope to close your company, you can see this page.

How to close your company in Japan.

Other than articles mentioned above, you can find many articles. You can find them in “Blog about Japanese Law and Tax“