Welcome to our FAQ hub. Here you’ll find clear answers to the most common questions about doing business in Japan, our services, and the local compliance landscape.
🔹 Company Incorporation in Japan
Q1: What types of companies can I set up in Japan?
You can choose from a Kabushiki Kaisha (KK), a Godo Kaisha (GK), or a Branch Office. Each structure has different requirements and benefits.
Q2: How long does it take to incorporate a company in Japan?
Typically, incorporation takes 4 to 6 weeks, depending on the entity type, visa requirements, and banking setup.
Q3: Do I need a physical office address to incorporate in Japan?
Yes, a registered address in Japan is mandatory. SBC offers registered office address services in Tokyo.
Q4: Can a foreigner own 100% of a Japanese company?
Yes. There are no restrictions on full foreign ownership for most industries in Japan.
🔹 Nominee Directorships
Q5: What is a nominee director in Japan?
A nominee director is a locally based individual who serves as your company’s legal representative to meet Japanese compliance requirements.
Q6: Do nominee directors have legal responsibility?
Yes, they have fiduciary and legal duties under Japanese law. SBC provides indemnified, non-operational nominee directors.
Q7: Is a nominee director the same as a representative director?
In function, yes—both represent the company legally. Nominee status refers to who controls decision-making behind the scenes.
Q8: Can I appoint more than one director?
Yes. You can appoint multiple directors, but at least one must be a Japan resident for KK and Branch Offices.
🔹 Payroll & Employment Services
Q9: How does SBC manage payroll in Japan?
We calculate salaries, deduct taxes and insurance, issue payslips, and remit all payments on your behalf.
Q10: Can I hire employees in Japan without incorporating a company?
Yes. Through SBC’s Employment Outsourcing (EOR) service, your employees can be legally hired under our entity and seconded to you.
Q11: What’s included in payroll compliance?
Payroll compliance includes income tax, residence tax, employment and accident insurance, health and pension contributions, and reporting.
Q12: Do you provide payslips in English?
Yes. We can issue bilingual payslips and reports.
🔹 Tax Compliance
Q13: What are my tax obligations as a business in Japan?
You must file corporate tax returns (blue or white form), consumption tax reports, and monthly withholding tax returns.
Q14: Do I need to register for Japanese consumption tax (VAT)?
If your annual sales exceed ¥10 million, registration is mandatory. SBC will advise and handle the process.
Q15: Can SBC help with expat tax filings?
Absolutely. We assist with income tax returns, global asset declarations, and housing allowance structuring.
Q16: What happens if I file taxes late in Japan?
Late filings incur penalties and interest. We monitor all deadlines to ensure full compliance.
🔹 HR Consulting & Labor Compliance
Q17: Do I need to provide a written employment contract in Japan?
Yes. Written contracts outlining key terms are legally required. SBC provides bilingual templates.
Q18: What are standard benefits in Japan?
Mandatory benefits include health insurance, pension, unemployment insurance, and paid leave.
Q19: Can I terminate an employee easily?
Japanese labor law strongly protects employees. Termination requires due process and proper documentation. We provide compliant procedures.
Q20: Do you help with HR policy creation?
Yes. We assist with company handbooks, working rules, and HR frameworks.
🔹 Social & Labour Insurance
Q21: Who must be enrolled in social insurance in Japan?
All full-time employees (and most part-timers) must be enrolled in health, pension, unemployment, and accident insurance.
Q22: What does SBC do for social insurance?
We handle enrollment, monthly premium calculation, government payments, and annual filings.
Q23: What happens if I don’t enroll employees properly?
Non-compliance can result in penalties, legal actions, or visa issues. SBC ensures full, timely compliance.
🔹 Visa Processing
Q24: Can SBC sponsor a work visa for my employee?
Yes. We handle COE, work visa applications, and renewals—especially for employees under our employment outsourcing.
Q25: What is the Certificate of Eligibility (COE)?
The COE is a prerequisite for applying for a visa at a Japanese embassy or consulate. We prepare and submit it for you.
Q26: How long does visa processing take?
Typically 1.5 to 3 months, depending on the visa type and documentation readiness.
🔹 Pension & Retirement Schemes
Q27: Can foreign companies set up retirement plans for employees in Japan?
Yes. Through licensed life insurance partnerships, SBC designs tax-efficient retirement allowance schemes.
Q28: Are employer contributions tax-deductible?
Yes. Contributions made to qualifying retirement schemes are tax-deductible for the company.
🔹 Transfer Pricing & Intercompany Transactions
Q29: Do I need transfer pricing documentation in Japan?
If you have significant intercompany transactions, yes. SBC prepares compliant TP reports in English and Japanese.
Q30: What documents are required for transfer pricing compliance?
A Local File, benchmarking studies, and functional analyses are typically needed for companies meeting the revenue threshold.
🔹 Accounting & Financial Management
Q31: Can SBC handle all my bookkeeping and reporting?
Yes. We provide full accounting services, including ledger maintenance, monthly reports, and cash flow monitoring.
Q32: What accounting standards do you support?
We support both Japanese GAAP and US GAAP, depending on your reporting needs.
🔹 Registered Address & Office Support
Q33: Can I use SBC’s Tokyo office as my company address?
Yes. We provide registered office services for incorporation, banking, and regulatory use.
Q34: Will you forward mail or manage correspondence?
Yes. Mail handling, scanning, and forwarding can be included in your service plan.
🔹 General & Other Questions
Q35: Can SBC help even if I don’t speak Japanese?
Yes. All of our core services are bilingual and designed for foreign business operators.
Q36: What industries do you serve?
We work with clients in tech, finance, consulting, manufacturing, trading, and more.
Q37: Are your services scalable?
Yes. Whether you have 1 or 100+ employees, we scale with your needs.
Q38: How do I get started?
Just contact us. We’ll set up a consultation and propose a tailored service package for your business.