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Doing Business in Japan: Guide

Staff Reporter | 9:50 PM |

Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a  summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Japan. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
This information was collected from World Bank: Doing Business 
No.ProcedureTime to CompleteAssociated Costs
1Make a company seal3 daysJPY 20,000
2Acquire certificate of seal registration of representative managing member at the Ward office1 dayJPY 400 (each)
3Register at the head office or a branch of the Legal Affairs Bureau of the Ministry of Justice1-3 weeks0.7% of the capital amount or JPY 60,000, whichever is higher
4File notification of the incorporation of a company, the opening of a payroll office, and application for the approval of blue tax returns with District Tax Office.1 dayno charge
5File notification of the commencement of business with the local tax office (the office of local or prefectural government)1 dayno charge
6File notifications of commencement the applied business and labor insurance, and the rules of employment with the Labor Standards Inspection Office.1 dayno charge
7File applications for health insurance and public welfare pension with the Japan Pension Service1 dayno charge
8File application for business establishment of employment insurance with the Public Employment Security Office1 dayno charge