About Company Formation for Foreigners
First, we would like to explain about establishing a company. (Company Formation,Company Start-up)
Do you think it is difficult for foreigners to Incorporation of the company?
The procedures for foreigners to establish a company in Japan are the same as those for Japanese.
It is important to obtain the necessary visa status to become a company president.
We will explain regarding visa later.
There are 2 types: Personal and Corporate Business. (Here we will explain about Corporate Business)
2.Types of Corporate Business
Corporate Business can be divided into two broad categories. One is PROFIT CORPORATION and the other is NON-PROFIT CORPORATION. There are Incorporated Non-Profit Organization (NPO ), General Incorporated Association and General Incorporated Foundation.
3.Types of Company
There are 4 types of company: Joint-stock Company, Limited Liability Company, General Partnership Company and Limited Partnership Company.
If there are no specific request, most of the time we recommend the Joint-stock Company. Hence we will explain first about Joint-stock Company only.
* Please let us know if you are interested in other type of company.
4.Benefits of Establishing a Company (Company Formation)
① You gain high public credibility , earn trust with a financial institutions and business partners. Advantageous when recruiting employees.
② There are various income deductions permitted such as expenditures, financial loss etc. compared to individual proprietorship
For example: Retirement allowance, life insurance (there is a limit on the amount), term insurance
③ You can also enroll in government-managed health insurance and welfare pension.
④ The effective statutory tax rate can be reduced.
⑤ A corporation has a longer carry over and refund carryback of tax losses.
⑥ It is relatively easy for foreign empoyees to acquire a business manager visa status.
⑦ As general rule, company officer's remuneration can be considered as expenses.
⑧ The representative can be changed, and the stocks can be splitted and transferred according to circumstances.