Japanese limited liability company (Godo Kaisha)
- A liability company can be registered by one shareholder who may be a foreigner. It is necessary to appoint a director who is resident in the country. The minimum capital required is JPY1 (US$ 1) after five years of incorporation the share capital must be increased to JPY3 million (US$39,000)
- The LLC requires a physical office space and it needs to provide evidence to the local administration. Clients relocating to Japan must obtain a work permit. It is necessary to file financial statements to the local administration. LLCs benefit from the audit exemption provided they have less than US$ 4.5 million in share capital.
Japanese free zone company
- Its possible to incorporate an export-oriented manufacturing business in one of Japan free trade zones.
- Generally, a limited liability company with a minimum capital of US$ 50,000 is enough to meet the requirements of the Free Zone Authority.
- Japan’s free zones are usually used to re-export to other Asian countries.
Japanese joint stock corporation (Kabushiki Kaisha)
- Stock companies are similar to limited liability companies. They require the same amount of share capital upon incorporation and can be formed by foreigners as long as one director is appointed and resides in the country.
- Japan’s joint stock companies are not subject to audits provided they are not listed on the stock exchange, have less than three directors and have less than US$ 4.5 million of issued capital.
- A Japanese joint stock corporation is recommended when its planned to finance the business by raising capital on the Tokyo Stock Exchange or by issuing shares to third party investors.
- An audit is required when there are three directors on the board.
Japanese limited liability partnership
- Partners must reside in Japan and can benefit from limited liability against the business’s operations.
- This organization is a tax-transparent partnership, whereby earnings are distributed to the company partners who are required to submit their corporate / personal tax statements. The LLP is the perfect choice for clients who already have partners in Japan.
- The range of operations depends on the scope of the foreign organization, the branch is limited to the activities corresponding to those of the parent company. A branch must appoint a representative residing in the country.
- The branch enables our client to minimize accounting obligations, the branch accounts are the same as the head office accounts. It is an ideal option if our clients have plans to provide products or services that are subject to licensing requirements where a higher amount of capital is required. When establishing a branch, the foreign company will bear unlimited liabilities for the debts and losses incurred by the branch in Japan.
Japan representative office
- Representative offices can engage in promoting the parent company’s business and in market research.