Q81: Can you tell me about the procedures after establishing a company in Japan?
ringo tax corporationA: For foreigners considering entering the Japanese market, the procedures following the establishment of a company or branch are crucial. Japan's tax and labor systems have unique rules, but proper procedures allow for smooth business operations. Here, we introduce the necessary steps after setting up a company or branch.
Tax-related procedures
After establishing a company, you need to submit notifications to the tax office and the local tax bureau. The specific procedures vary depending on whether you are establishing a corporation or setting up a branch.
・For establishing a corporation: Submit a corporation establishment notification to the tax office and local tax bureau located at the head office.
・For setting up a branch: Submit a notification that the branch has become a foreign ordinary corporation to the tax office located at the branch.
Labor-related procedures
If you establish a company or branch and hire employees, you need to complete the procedures for joining labor insurance and social insurance. Labor insurance includes workers' compensation insurance and employment insurance, while social insurance includes health insurance, welfare pension insurance, and care insurance.
Foreign Exchange and Foreign Trade Law-related
If the investment is made by non-residents and the investment ratio is 10% or more, it qualifies as "Inward Direct Investment." In this case, you need to submit a report to the competent minister via the Bank of Japan by the 15th of the month following the company registration.
These are the main procedures required after setting up a company or branch. For more details, refer to the relevant information and aim for smooth business operations.
Feel free to ask if you have any questions!
Japanese Certified Public Accountant ・Tax Accountant Hiroya Aihara
Ringo Tax Corporation
