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
Bearer shares allowed	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

Japanese free trade zones offer a variety of tax benefits.
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;
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;
Furthermore, 15% of machinery and equipment costs and 6% of building costs are deductible for expanding their facilities;
For companies operating under Naha FTZ, 40% of corporate income is exempted from income tax for the first 10 years after incorporation;
Companies operating in the Niigata Free Port are exempted from real estate tax and corporate tax for a period of 3 years.
All the Free Trade Zones are located next to ports and air terminals, facilitating logistics and lowering transportation costs.

The Valsen Advantage

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

Japan Offering