Japan Free Zone Company

Japan’s free trade zones are attractive options for business setups since they offer foreign companies partial tax exemption and partial custom duties exemption. The FTZ include: i) Okinawa SFTZ, optimal for semiconductor, circuit board and precision grind jigs production ii) Naha FTZ, optimal for business operating in manufacturing, cargo, shipbuilding and import and export, and iii) Nigata Free Port, suitable for business in the sectors of sea freight, international distribution, energy and foreign trade.

Foreign investors are not permitted to directly submit the application documents to incorporate a Free-Trade Zone company to the relevant authority in Japan. They must retain a Japan entity that is authorized or permitted by relevant authorities to act as a sponsor. The sponsor will submit all the documents to the examination and approval authorities on behalf of the foreign investors.

It is ok for investors to register a Free-Trade Zone company with a virtual address in Japan free trade zone. It’s even ok for such a company to apply for working visa for its foreign employees with such virtual address.

 

Features of Japan Free Zone Company

Japan Free Zone Company

Corporate Details

General

  • Type of Entity

 Free Zone Company

  • Registered Office in Japan

Yes

  • Shelf company availability

No

  • Our time to establish a new company

2 Months

  • Corporate Taxation

Yes

  • Access to Double Taxation Treaties

Yes

Share capital or equivalent

  • Standard currency

USD

  • Permitted currencies

EUR, USD, GBP, JPY

  • Minimum paid up

US$1

No

  • No-par-value shares allowed

No

Directors

  • Minimum number

One

  • Local required

No

  • Publicly accessible records

Yes

  • Location of meetings

Anywhere

  • Corporate directorship allowed

Yes

Shareholders

  • Minimum number

One

  • Publicly accessible records

Yes

  • Corporate shareholders allowed

Yes

  • Location of meetings

Anywhere

Company Secretary

  • Required

No

  • Local or qualified

No

Accounts

  • Requirements to prepare

Yes

  • Audit requirements

No

  • Requirements to file accounts

Yes

  • Publicly accessible accounts

Yes

Other

  • Requirement to file annual return

Yes

  • Migration of domicile permitted

Yes

 

Advantages of Japan Free Zone Company

  1. Japanese free trade zones offer a variety of tax benefits.
  2. Companies incorporated within a Japanese FTZ are exempted from tariffs (up to 100%) and domestic consumption tax (up to 100%) for i) goods imported in the FTZ for manufacturing and ii) re-exported goods;
  3. For companies operating in Okinawa SFTZ, 30% of the income tax earned by companies is exempted from corporate tax for a period of 10 years;
  4. Furthermore, 15% of machinery and equipment costs and 6% of building costs are deductible for expanding their facilities;
  5. For companies operating under Naha FTZ, 40% of corporate income is exempted from income tax for the first 10 years after incorporation;
  6. Companies operating in the Niigata Free Port are exempted from real estate tax and corporate tax for a period of 3 years.
  7. All the Free Trade Zones are located next to ports and air terminals, facilitating logistics and lowering transportation costs.

 

The Valsen Advantage

  1. Speedy, Efficient and consistent Services.
  2. Relentless effort to obtain bank accounts.
  3. Expert advice on structuring options.
  4. Dedicated ongoing compliance support.