\u00a0Case 5
\n<Question>
\nI have been working in Japan as an expatriate from Canada though, I plan to leave the company and start a business in Japan. Could you tell me about the laws and regulations with regards to starting a business in Japan.
\n<Answer>
\nRegarding starting a\u00a0business in Japan, the following categories should be taken care.\u00a0<\/p>\n
<\/p>\n
1.\u00a0 Sarting a business<\/p>\n
If your business is not a corporation, registration to the Legal Affairs Bureau is not necessary. There are several types of corporations in Japan.<\/p>\n
(1) \u00a0Joint-stock corporation (Kabushiki-Kaisha (K.K.))
\n(2)\u00a0 Limited liability company (Godo-Kaisha (LLC))
\n(3)\u00a0 Unlimited partnerships (Gomei-Kaisha)
\n(4)\u00a0 Limited partnerships (Goshi-Kaisha)<\/p>\n
All types can be established by completing the required procedures stipulated by law and then registering the corporation. Kabushiki-Kaisya (K.K.) is the most common type of corporation in Japan.<\/p>\n
General procedures for establishing companies are as follows.
\n(1) \u00a0Determination of companies information to be registered
\n(2)\u00a0 Examination at the Legal Affairs Bureau of similar corporate names
\n(3)\u00a0 Establishment of companies (date of companies establishment is at the companies discretion)
\n(4)\u00a0 Application to the Legal Affairs Bureau for registration of companies\u00a0establishment; registration of company seal with the Legal Affairs Bureau
\n(5)\u00a0 Acquisition of certificate on registered information and company seal registration certificate(approx. two weeks after application for registration)*3
\n(6)\u00a0 Opening of bank account under companies name<\/p>\n
(Note)
\n*1 Companies\u2019 articles of incorporation, establishment certificate, registration certificate, and other such documentation in Japanese.
\n\u00a02 Time required: about one month after determination of companies to be registered.
\n*3 Taking advantage of seals for individuals and companies are common instead of\u00a0using a signature. Stationary shops are available to make seals.<\/p>\n
2.\u00a0 Taxes<\/p>\n
When establishing corporations, the tax authority require the filing of several application forms (Filing similar application forms is required to start an individual business).<\/p>\n
National Tax Forms<\/span><\/p>\n (1)\u00a0 Notice of Incorporation *1 (2)\u00a0 Application for approval of filing blue-form return \u00a0 Local Tax Forms<\/span><\/p>\n (1)\u00a0 Notice of commencement of business, etc *1 Attachment<\/p>\n \u00a0*2 If number of employees subject to payroll is less than ten at any time, the\u00a0company can use this form.<\/p>\n \u00a0*3 In general, an enterprise with sales in Japan will be a consumption tax payer. There is a relief provision for small scale enterprises where the amount of taxable sales in a \u201cbasis period\u201d is not more than 10 million. However, the enterprise be able to elect to become a taxable enterprise by filing a \u201cNotice of Consumption Tax Election to be a Taxable Enterprise\u201d, if the amount of taxable sales of an enterprise in the taxable base period is not more than 10 million. The base period is the business year two years prior to the current business year. Please note that a newly established enterprise is a consumption tax payer if the capital of the enterprise is 10 million and more.<\/p>\n \u00a0<\/p>\n Reference<\/span><\/p>\n Starting a business in Japan \u2013 Business operation 25\/10\/2012 \u00a0<\/p>\n By Certified Public Accountant (CPA) & Tax Accountant, Koji Takahashi \u00a0Case 5 <Question> I have been working in Japan as an expatriate from Canada though, I plan to leave the company and start a business in Japan. Could you tell…<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":{"0":"post-386","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-news-2"},"_links":{"self":[{"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/posts\/386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/comments?post=386"}],"version-history":[{"count":1,"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/posts\/386\/revisions"}],"predecessor-version":[{"id":6947,"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/posts\/386\/revisions\/6947"}],"wp:attachment":[{"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/media?parent=386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/categories?post=386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/tags?post=386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Within two months after the date of incorporation<\/p>\n
\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 One day before the earlier day of the following.
\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 i ) Three months after the date of incorporation
\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 ii) The end of first fiscal tax period
\n(3)\u00a0 Application for the extension of time to file corporation tax return
\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The end of the first fiscal year
\n(4)\u00a0 Notice of adoption of accounting method
\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Due date of filing of tax return for the first fiscal year
\n(5)\u00a0 Notice of commencement of payment of wages and salaries
\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Within one month after the date of establishment
\n(6)\u00a0 Application for approval of semi-annual payments of withholding taxes *2
\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Effective at the end of the month following the month of filing
\n(7)\u00a0 Notice of consumption tax election to be a taxable enterprise *3
\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The end of the fiscal year<\/p>\n
\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Within 15days after the date of commencement of operations
\n(2)\u00a0 Application for the extension of time to file enterprise tax return
\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0The end of the first fiscal year
\n(3)\u00a0 Application for the extension of time to file inhabitants tax return
\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0The end of the first fiscal year<\/p>\n\n
\nStarting a business in Japan \u2013 Blue tax return for Income tax 11\/10\/2012<\/a><\/em>
\nStarting a business in Japan \u2013 Opening bank accounts and borrowing money 28\/09\/2012<\/a>
\nStarting a business in Japan \u2013 Tax merit (a corporate or an individually owned business?) 10\/09\/2012<\/a><\/em>
\n<\/em>Starting a business in Japan – Consumption tax <\/a><\/p>\n
\nTokyo & Yokohama<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"