This country currently has a directory entry or basic profile only; a full handbook is planned.
01Overview
- Region
- East Asia & Oceania
- Capital
- Tokyo
- Currency
- JPY
- Languages
- Japanese
- ISO code
- JP / JPN
Jurisdictions
- Japan — National level; special zones and regulated sectors have separate rules
Macro indicators such as GDP and population are not included yet; see official statistics such as the World Bank.
02Market Entry
Industries to study: AI, SaaS & tech services
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Most sectors are open
- Applies to
- Designated sectors need prior notification under the Foreign Exchange and Foreign Trade Act
- Jurisdiction
- Japan
- Source
- MOFCOM
03Business Formation
Common legal entity
The company form most commonly used by foreign investors for a local operating entity.
Kabushiki kaisha (KK) or godo kaisha (GK)
- Applies to
- Ordinary companies
- Jurisdiction
- Japan
- Source
- MOFCOM
Registration authority
Primary authority for company or commercial registration.
Legal Affairs Bureaus (Ministry of Justice)
- Applies to
- Ordinary companies
- Jurisdiction
- Japan
- Source
- MOFCOM
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Most sectors are open
- Applies to
- Designated sectors need prior notification under the Foreign Exchange and Foreign Trade Act
- Jurisdiction
- Japan
- Source
- MOFCOM
Local director / representative
Whether a locally resident director, manager or representative is required.
Representative directors need not reside in Japan (since 2015)
- Applies to
- Opening bank accounts may still need a local contact in practice
- Jurisdiction
- Japan
- Source
- Legal Affairs Bureau (Ministry of Justice)
Local registered address
Whether a local registered address or premises is required at incorporation.
A registered address in Japan is required
- Applies to
- A corporate service address may be used if it can receive statutory documents
- Jurisdiction
- Japan
- Source
- Legal Affairs Bureau (Ministry of Justice)
Beneficial ownership register
Whether companies must keep or file ultimate beneficial owner information.
No mandatory filing; a beneficial owner list may be lodged voluntarily with the Legal Affairs Bureau
- Applies to
- Banks still identify beneficial owners at account opening
- Jurisdiction
- Japan
- Source
- Legal Affairs Bureau (Ministry of Justice)
Foreign-entity setup flow
Main approval stages for a foreign investor setting up an entity (no time estimates).
Articles notarised → pay in capital → incorporation registration at the Legal Affairs Bureau → notifications to the tax office
- Applies to
- Foreign investment in some sectors needs prior notification under the Foreign Exchange Act
- Jurisdiction
- Japan
- Source
- Legal Affairs Bureau (Ministry of Justice)
04Taxation
Headline corporate income tax
Statutory headline rate for ordinary companies, before incentives, exemptions, thresholds or special regimes. Always read with the conditions.
23.2% (national corporate tax)
- Applies to
- Combined with local taxes about 30%; SMEs pay 15% on the first ¥8m
- Jurisdiction
- Japan
- Source
- State Taxation Administration
Indirect tax (VAT / GST / SST)
Standard rate and type of VAT, GST or sales & service tax.
Consumption tax 10%
- Applies to
- Food and some items take a reduced 8% rate
- Jurisdiction
- Japan
- Source
- National Tax Agency
Dividend withholding tax (non-residents)
General withholding on dividends paid to foreign shareholders, before treaty relief.
20.42% (including reconstruction surtax)
- Applies to
- Generally 10% under the China–Japan treaty
- Jurisdiction
- Japan
- Source
- State Taxation Administration
Tax authority
Authority responsible for corporate tax registration and filing.
National Tax Agency
- Applies to
- Ordinary companies
- Jurisdiction
- Japan
- Source
- State Taxation AdministrationNational Tax Agency
Tax treaty with China
Whether a double taxation agreement with China is in force. Rates and conditions per the treaty text.
In force
- Applies to
- Rates and conditions per the treaty text and STA publications
- Jurisdiction
- Japan
- Source
- State Taxation Administration (China)State Taxation Administration
05Banking & Payments
Exchange controls
Whether general exchange controls or cross-border fund rules apply.
In principle no restrictions on remittances
- Applies to
- Large remittances are reported afterwards
- Jurisdiction
- Japan
- Source
- MOFCOM
Banking & financial regulator
Primary regulator for banking and foreign exchange.
Bank of Japan; Financial Services Agency
- Applies to
- Ordinary companies
- Jurisdiction
- Japan
- Source
- MOFCOM
06Employment
Foreign employee work permit
Main permit types needed for foreign employees to work legally.
Status of residence (e.g. Business Manager, Engineer/Specialist in Humanities/International Services) from the Immigration Services Agency
- Applies to
- Ordinary companies
- Jurisdiction
- Japan
- Source
- MOFCOM
Labour & work permit authority
Authority for labour rules and foreign employee work permits.
Immigration Services Agency
- Applies to
- Ordinary companies
- Jurisdiction
- Japan
- Source
- MOFCOM
Social security contributions
Main employer social security schemes for local and foreign employees.
Employees' pension, health, employment and workers' accident insurance
- Applies to
- Chinese posted workers can be exempt from the employees' pension for up to 5 years under the China–Japan agreement
- Jurisdiction
- Japan
- Source
- Japan Pension Service
07Trade & Customs
Customs authority
Authority for import/export clearance and tariffs.
Customs and Tariff Bureau, Ministry of Finance
- Applies to
- Ordinary companies
- Jurisdiction
- Japan
- Source
- MOFCOM
Main free trade agreements
Main regional and bilateral trade agreements relevant to Chinese exporters (not exhaustive).
CPTPP, RCEP, Japan–EU EPA and others
- Applies to
- Ordinary companies
- Jurisdiction
- Japan
- Source
- MOFCOM
08Investment & Manufacturing
Investment authority / agency
Body responsible for approving, registering or promoting foreign investment.
JETRO
- Applies to
- Ordinary companies
- Jurisdiction
- Japan
- Source
- MOFCOM
Free zone / SEZ regime
Whether free zones or special economic zones operate under rules different from the mainland.
National Strategic Special Zones, comprehensive special zones and structural reform zones
- Applies to
- Ordinary companies
- Jurisdiction
- Japan
- Source
- MOFCOM
09Digital & IP
IP office
Authority for trademark and patent filing and registration.
Japan Patent Office (METI)
- Applies to
- Ordinary companies
- Jurisdiction
- Japan
- Source
- MOFCOM
Personal data protection law
Main law and regulator governing collection, use and cross-border transfer of personal data.
Act on the Protection of Personal Information (APPI)
- Applies to
- Supervised by the Personal Information Protection Commission; specific rules for transfers abroad
- Jurisdiction
- Japan
- Source
- Personal Information Protection Commission
10Compliance & Risk
New York Convention party
Whether the country is party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which affects enforcing foreign arbitral awards locally.
Yes
- Applies to
- Foreign arbitral awards can be enforced under the Convention, subject to its limited refusal grounds
- Jurisdiction
- Japan
- Source
- UNCITRAL
Live risk monitoring
Geopolitical, conflict and trade-route risk events for Asia-Pacific, monitored by our sister site Global Risk Monitor.
View Asia-Pacific risk monitor
Global Risk Monitor · Geopolitical and trade-route risk monitoring
11Step-by-Step
Main setup steps in Japan
- 1Articles notarised
- 2pay in capital
- 3incorporation registration at the Legal Affairs Bureau
- 4notifications to the tax office
Foreign investment in some sectors needs prior notification under the Foreign Exchange Act
General checklist (setting up a subsidiary)
- Decide model and jurisdiction
- Confirm licences
- Prepare documents
- Incorporate
- Register for tax
- Open bank account
- Obtain operating licences
- Start operations
Steps follow the setup-procedure fact on this page, without times or fees; rely on the official sources.
12Official Resources
Chinese official resources
Country materials from MOFCOM, the State Taxation Administration and China's overseas commercial offices
- MOFCOM country investment guideMOFCOM · PDF (Chinese)
- Green guideMOFCOM · PDF (Chinese)
- Country tax guide (STA)State Taxation Administration · PDF
- Commercial office中华人民共和国驻日本国大使馆经济商务处
- MOFCOM going-global platformMOFCOM
- Compliance & security alertsMOFCOM platform
Official guides are long Chinese-language PDFs updated on the publishers' schedules. Our structured facts cite local authorities as primary sources; use these guides to cross-check.
Local authorities
- TaxNational Tax AgencyTax authority website · Accessed 2026-11-13
- LegislationPersonal Information Protection CommissionAct on the Protection of Personal Information · Accessed 2026-11-13
- LabourJapan Pension ServiceSocial security · Accessed 2026-11-13
- Company registrationLegal Affairs Bureau (Ministry of Justice)Commercial registration · Accessed 2026-11-13