Japan LLC

A limited liability company in Japan, “godo gaisha”, is a form of business where the company’s members have limited liability based on their contribution to the capital. It is regulated by the New Companies Act, established in 2006 and it’s replacing the former yugen gaisha, usually established by the small businesses.

The company’s entrepreneurs are called ‘’members’’ unlike the investors of a joint stock company, called “shareholders”.

There is no minimum share capital required at registration and the contribution of the members can be made only in cash or non-cash assets and never in services.

The members choose a manager to act in the name of the company and their interests. This manager may be a natural person or a corporate body. If a corporate body is elected as a manager, it must appoint a functional manager to act in the name of the company.

 

Features of a Japan LLC

Japan LLC             

Corporate Details

General

  • Type of Entity

LLC

  • Registered Office in Japan

Yes

  • Shelf company availability

Yes

  • 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 a Japan LLC

A Japan company is likely to benefit from the following advantages:

  1. Japan is one of the most politically stable countries in Asia, boasting a reputable regulatory environment. Consequently, a Japanese company is an excellent solution for i) signing regional contracts with customers and suppliers; and ii) registering intellectual property;
  2. Japan is the 2nd largest country in Asia (by GDP) and 3rd largest in the world. Furthermore, with its population of 126 million, our Clients will have access to a large potential consumer base if they set up a Japanese company.
  3. Japan is a major international financial centre. The Global Financial Centre Index ranks the country as the 5th best financial centre in the world. Furthermore, the Tokyo Stock Exchange is the largest exchange in Asia and the 3rd largest exchange in the world;
  4. Japan is a major global trading hub. The Narita International Airport is ranked as the 8th largest airport (by cargo traffic), while Keihin Port is ranked as the 20th largest seaport in the world (by cargo volume);
  5. Investors will also benefit from availability of excellent infrastructure in Japan (ranked 5th best in the world) and highly sophisticated business environment (ranked 2nd best in the world);
  6. Japan boasts 3 free zones offering companies no customs duties, and flexible labour laws. The three free zones are Nagasaki, Niigata, Okinawa, and Tokyo;
  7. Japan has currently signed double taxation treaties with 96 countries allowing local companies to minimize withholding tax when remitting funds to other countries.

 

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.