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 will be added from the World Bank in the data release (P1).
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 Administration National 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
- Tax National Tax Agency Tax authority website · Accessed 2026-11-13
- Legislation Personal Information Protection Commission Act on the Protection of Personal Information · Accessed 2026-11-13
- Labour Japan Pension Service Social security · Accessed 2026-11-13
- Company registration Legal Affairs Bureau (Ministry of Justice) Commercial registration · Accessed 2026-11-13