Valsen Corporate

Japan Free Zone Company

  • 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.