Japan

The state of Japan is an island nation in East Asia. It is located to the east of mainland China and is very close to South Korea and Russia.
The state consists of many small islands and four large ones. Most of the islands are of mountainous and volcanic.
Japan is a powerful economic power, ranking third in the world in GDP. Huge quantities of goods are exported to many countries around the world.

The high standard of living is also due to a strong economy and a strong state.
Japanese is the state's official language. The official currency is the yen.
The country of the Rising Sun has an active international policy of integration and economic cooperation with other countries.
Member of: APEC, UN since 1956, WB, IMF, etc.

6 simple steps to purchase a company

  1. choosing a country

  2. choosing a bank

  3. payment (by any method)

  4. sending documents

  5. company registration

  6. bank account opening

Main advantages

From all the possible types of advantages that open up to the founders when incorporating a company, it is definitely worth noting:

  1. Japan is located at the crossroads of major trade routes between the US and China, as well as Southeast Asia, which makes it a very tempting country to visit.
  2. Japan is not on any blacklist, and Japanese companies already have a reputation for reliable suppliers and manufacturers.
  3. Low taxes compared to other countries.
  4. Many states have signed a double taxation treaty with Japan.

Organisational and legal forms of companies

According to current laws in Japan, it is possible to incorporate your company in the following legal forms:

  1. Go-mei Gaisha - business partnership
  2. Go-shi Gaisha - partnership company
  3. Kabushiki Kaisha - public joint-stock company
  4. Yugen Gaisha - Limited Liability Company

Most foreign businessmen choose to register a company in the form of a public KK (kabushiki gaisha) to start a business in Japan.

KK is a joint stock company. With the exception of some special industries, such as banking, chemical industry, defence, etc., foreign investors can own 100% of the shares of a Japanese company. The liability of the participants is limited to contributions to the company's share capital.

Features of company incorporation

Based on the analysis of the current legislation regulating the activities of business entities, the following can be highlighted with regards to the specifics of the process of registering your business:

  1. There are no residency requirements for shareholders; they can be individuals or other companies. However, only an individual can hold the position of executive director.
  2. The company must have a registered office in Japan.
  3. The company name can be in English or the Japanese phonetic equivalent, with the obligatory prefix of the legal form.
  4. The company is required to have a seal.

Taxes and fees

The state has the following features for levying taxes and fees

Japan has a very complicated taxation system, which is divided into several levels and depends on the size and turnover of the organisation.

Corporate income tax in Japan from commercial activities consists of several taxes:

  1. corporate tax, federal level;
  2. local corporate tax, federal level;
  3. corporate inhabitant tax, local level;
  4. enterprise tax, local level;

To calculate the effective tax rate, add the rates of each of the taxes that depend on the taxable income of the Japanese company.

The resulting effective rate:

  1. 27.29% Up to 4 million yen;
  2. 29.59% 4 to 8 million yen;
  3. 37.05% Above 8 million yen;

Japan has the local equivalent of European VAT taxed at a rate of 10%, state registration is required to become a VAT payer.

Non-VAT monetary transactions in Japan include: Sale or lease of land, rental of housing by an individual (including all necessary one-time fees, except for agent fees), tuition fees, enrolment fees, Ministry of Education-approved textbooks, etc.

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