The most common type of legal entity in Japan is Kabushiki Kaisha (株式會社), meaning limited company. It can be 100% owned Foreign shareholders and is managed by at least one director.
Requirement for Thailand Company
|Proposed company name||Japanese|
|Minimum share capital||JPY 1|
|Minimum shareholder||1 Natural person or legal entity|
|Minimum director||1 Natural person|
Bank Account opening in Japan
It is important to note that despite the change in local representative rule in 2016, most banks in Japan are reluctant to open corporate bank account for foreign entity without a local participation. Therefore, most company will appoint a local in Japan as director to suit bank’s requirement.
Tax System in the Japan
Tax system is Japan is rather complex, there are various types of taxes, including corporate income tax (standard rate of 23.2%), local inhabitants’ tax (prefecture and municipal) (including corporation tax and per capita tax), local enterprise tax, and consumption tax 10% (including national tax 7.8% and local tax 2.2%). Typically, the effective tax rate is around 30%. It is highly recommended to hire tax professions to tackle the tax issue to avoid late fines and misunderstanding of tax liabilities and responsibilities.