With the introduction of the new Corporate Law in Japan in 2006, setting up or incorporating a new company has become a much easier.

1. Consult A Reputed Professional To Handle Tax Japan
In starting a business in Japan, it is essential to understand the
preparatory stages of Company Incorporation.
With the introduction of the new Corporate Law in Japan in
2006, setting up or incorporating a new company has
become a much easier. Because of this law the restrictions
such as minimum capital required and least amount of
directors needed have been put to an end. Now it has turned
out to be feasible to set up a Kabushiki Kaisha i.e. a Limited
Company or a Joint Stock Company without such
restrictions.
Ways for company incorporation in Japan:
Any foreigner who wishes to establish a business in Japan can approach as a sole proprietor or by setting
up a company. If one launches a company with a number of partners, it becomes easier to manage the
monetary aspects by forming a company.
There are at present four types of companies in
Japan:
Godo Kaisha is a form of company which performs like
Limited Liability Company (LLC) in western
countries and can have one or more partners with
limited liability.

2. Goshi Kaisha has minimum of one partner with unlimited liability and other partner(s) with restricted
liability.
Gomei Kaisha is another form that consists of partners with unlimited liabilities.
Kabushiki Kaisha is the form of a company that is controlled by shareholders with limited liability and
also by directors appointed by the shareholders. This is the most popular, existing form of incorporation
in Japan, used by majority of companies.
As far as income tax Japan is concerned there is an obvious difference in corporations and partnerships.
We need to pay duty on Income, Property, Enterprise, Liquor, Tobacco and Gasoline,Consumption and
Vehicle.
The duty paid for the income in a financial year again is different for a “Non Resident”, “Non-Permanent
Resident” and “Permanent Resident”. This is paid yearly on income during a calendar year.
Ways to pay tax:
The duty on the income is calculated on the basis of a self-
assessment system combined with a withholding duty
scheme where dues are deducted from salaries and
submitted by the companies and as a result most of the
employees here do not necessitate filing their return.
Individuals who need to file the return, like self-employed
people, have to do so at the local income tax office between
February 16 and March 15 of the subsequent year. If not
withdrawn by the company, income duties are due in total
by March 15 of the following year in just two prepayments paid in July and November of the current tax
year.
John Smith is the associate writer for Tokyo Consulting Group. The publication is
a leading informer of japaneses accountants news on Company Incorporation In
Japan and Tax Japan. Visit the website to read more about our stories
http://www.kuno-cpa.co.jp/tcf/japan/

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