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All about Running a Company and Paying Taxes in Japan

International entrepreneurs find doing business in Japan is complex.

PRLog - March 4, 2014 - That said, the Japan External Trade Organisation (JETRO) (http://www.jetro.go.jp/) reported that 83% of foreign-invested firms experience ‘fair’ to ‘booming’ business there, making Japan company registration a viable option.

For Japan company registration of an LLC, only one director and one shareholder is needed. The minimum share capital is US$1 for Japan business formation and there is no need to travel. A Japanese LLC enjoys the benefits of 58 international double taxation treaties, thus minimizing withholding tax for a Japan business setup. Japan boasts four free zones offering a foreign Japan business setup no custom duties, and flexible labour laws. The four free zones are Nagasaki, Niigata, Okinawa, and Tokyo.

Japan’s corporate tax is a 30% for the first 3 years on corporate profits, thereafter the corporate tax rate is reduced to 25%. Along with the corporate tax, the company must pay two types of local taxes: inhabitant tax from 17.3% to 20.7% and enterprise tax of 7.5%. There are no restrictions on the repatriation of capital. The standard value added tax (VAT) rate is 5%, therefore sales prices can be optimized. Most companies in the country require an annual statutory audit. Healy Consultants (http://www.healyconsultants.com/asia-pacific-incorporatio...) compliance department guides our Client through legal and tax obligations to support Japan company formation. Monthly and quarterly financial statements must be submitted to the local authorities. The statements must include total global revenues and will be taxed on its profits.

Japan’s capital expenditure was USD2.5 trillion in 2012 thus providing business opportunities for multinational services firms through Japan business formation. The country has signed Double taxation avoidance agreements (DTAA) (http://unctad.org/Sections/dite_pcbb/docs/dtt_Japan.PDF) with 58 countries. It is the third largest economy in the world, and is Asia’s second largest economy with a GDP per capita of US$5,960,180 thus possessing massive domestic consumer demand.


Aidan Healy

Business Owner

Healy Consultants


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Source:Healy Consultants Pte Ltd
Location:tokyo - Japan
Tags:singapore company formation, offshore company setup, international business
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