2025-10-16Japan Company Annual Renewal and Maintenance Guideline
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(1) |
Notification of Corporation Establishment (In Japanese, “法人設立届出書”)
The company must submit a “Notification of Corporation Establishment” to the regional taxation bureau (in Japanese, “稅務局”) in which the company is registered within 2 months and to the tax office (in Japanese, “稅事務所”) of the respective prefectures within 15 days from the date of incorporation of the company.
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(2) |
Application Form for Approval of Filing Blue Return (In Japanese, “青色申告の承認申請書”)
Companies that file a blue tax return are eligible for several tax reductions. The company should submit “Application Form for Approval of Filing Blue Return” to the regional taxation bureau where the company is incorporated within three months from the date of incorporation, or by the end of the first business year after incorporation.
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(3) |
Notification of Establishment/Relocation/Closure of a Salary-Paying Office (In Japanese, “給与支払事務所等の開設届出書”)
A company that intends to hire employees and pay their salaries must submit a “Notification of Establishment a Salary-Paying Office” to the tax office of the jurisdiction where the company is registered within 1 month from the date of incorporation.
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(4) |
Application for Approval Made in Relation to the Special Provision for Due Dates for Withholding Income Tax (in Japanese, “源泉所得税の納期の特例の承認に関する申請書”)
Small businesses with less than 10 employees who salaries are required to be paid may submit an “Application for Approval Made in Relation to the Special Provision for Due Dates for Withholding Income Tax” to the tax bureau of the place where the company is registered to apply for semi-annual payment of withholding income tax. There is no specific deadline for the submission of this application, however, it is recommended to complete the application as soon as possible when it does not take into effect immediately upon the submission which requires authorization from the commissioner of the tax bureau.
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(1) |
Kaizen’s Virtual Office (Taito Ward, Tokyo)
For details, please refer to Japan Virtual Office Rental Service Fees. |
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(2) |
Kaizen’s Physical Office Kaizen’s physical office located in Taito Ward, Tokyo, transport connections and is suitable for business management visa applications. Please contact our consultants to confirm the latest vacancy status and rental details if you interest in leasing physical office in Tokyo. |
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(3) |
Offices Outside Tokyo
Kaizen can also assist with leasing virtual offices located outside Tokyo. The first-year service fee is 66,000 JPY. From the following year, the annual service fee is 22,000 JPY. Office rental fees are subject to the specific location in Japan requested by the client. Office rental fees are subject to the specific location in Japan requested by the client. Kaizen will confirm the current price for virtual or physical office in the chosen city and provide the details for clients' consideration. Please contact our consultants for further information.
Please note that, Kaizen's services fee does not include office rent, security deposits, or any agency fees that may be charged by the Japanese agent. Such fees are subject to the agent's final quotation and should be paid directly by the client to the account provided by the agent.
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(1) |
Prepare monthly financial statements (in Japanese, “財務報告書”), including balance sheet (in Japanese, “賃借対照表”) and profit and lost statement (in Japanese, “損益計算書”). |
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(2) |
Prepare monthly progressive financial report (in Japanese, “推移財務報告書”) |
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(3) |
Prepare journal ledger (in Japanese, “仕訳日記帳”) |
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(4) |
Prepare monthly trend of selling, general and administrative expense (in Japanese, “販管費月別推移”) |
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(5) |
Prepare general ledger (in Japanese, “総勘定元帳”) |
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(1) |
Corporate Tax (法人税)
In Japan, corporate tax is levied on the profit income of corporations, while corporations are not subject to corporate tax if they do not have any profit income. The corporate tax rate in Japan is determined by the size and type of corporation. If a company has a capital of not more than 100 million JPY, a corporate tax rate of 15.00% (if the taxable income does not exceed 8 million JPY) or 23.20% (if the taxable income exceeds 8 million JPY) applies. Corporate tax is a national tax and is paid to the state through the local tax bureau. If a Japanese company has a deficit, the amount of corporate tax for the relevant year is zero, however, the obligation to declare remains.
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(2) |
Corporate Inhabitant Tax (法人住民税)
The corporate inhabitant tax has two parts: the “corporate tax proportion” and the “equalized proportion”. The corporate tax proportion is calculated based on the amount of corporate tax, therefore, when a corporation does not have any profit income and is not accountable to corporate tax, the corporate tax proportion is zero; the equalized proportion is calculated based on the amount of capital and the number of employees, hence, even though a corporation does not have any profit income, it is accountable to pay the equalized proportion of corporate tax. In other words, even if a company does not earn any profit, it still has to pay a corporate inhabitant tax. For example, in Tokyo, a minimum of 70,000 JPY per year. The corporate inhabitant tax is a local tax and should be paid to the jurisdiction tax office.
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(3) |
Corporate Enterprise Tax (法人事業税)
Corporate enterprise tax is a local tax levied on the business conducted by a corporation and should be paid to the jurisdiction tax office. The tax rate is determined by the type of investment, capital amount, and scope of business of the corporation.
As of the end of the fiscal year, corporations with capital exceeding 100 million JPY are subject to size-based business tax (in Japanese, “外形標準課税”). Size-based business tax is comprised of two categories: the value-added proportion (in Japanese, “付加価値割”), which taxes based on the value added, and the capital proportion (in Japanese, “資本割”), which taxes based on capital amount. Kaizen can assist to prepare pro forma standard tax declaration with service fees starting from 110,000 JPY. The exact amount is determined based on the company's profit income and capital amount. |
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(4) |
Fixed Assets Tax (Depreciable Assets) (固定資産税(償却資産)).
Fixed asset tax is a local tax levied on fixed assets (land, buildings, etc.), the local municipal tax office will calculate the fixed asset tax and notify the taxpayer of the tax amount.
Depreciable assets are assets other than land and buildings that are used for business purposes. The depreciation amount of a depreciable asset is considered as an expense under the Corporate Tax Act or the Income Tax Act when calculating income. Corporates holding depreciable assets are required to report information on depreciable assets held as of January 1st (year of acquisition, acquisition value, number of years of durability, etc.) to the tax office of the district in which the depreciable assets are located by January 31st. Corporates are required to submit a "Nil" depreciable assets report by January 31st of each year even though they do not hold any assets. According to the different types and sizes of fixed assets, the standard amount of tax and depreciation rate are different. Kaizen do provide services on various asset declarations with specific charges depending on the actual assets and their values, Kaizen will quote separately on request. |
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(5) |
Withholding income tax (源泉所得税).
When a Japanese corporation pays certain income, such as salaries or remuneration, to its employees, tax accountants, judicial clerks, or lawyers etc. in Japan, it is required to determine the amount of income tax in accordance with a prescribed method and withhold the amount of income tax from the amount of the payment and pay it to the government. Corporations are required to file a “Nil” withholding income tax return even though they do not have any employees in Japan, or have never paid remuneration to a tax accountant, judicial clerk, or lawyer etc.
All Japanese corporations are required to submit an income tax calculation statement on salary or retirement income, etc., (payment notice) (給与所得・退職所得等の所得税徴収高計算書(納付書)) by the 10th day of each month, even if the corporation does not employ any employees or has not generated any income tax-related payments. For corporations with fewer than 10 employees that have submitted an application for approval made in relation to the special provision for due dates for withholding income tax(源泉所得税の納期の特例の承認に関する申請書), the tax can be paid twice a year (For the period from January to June: July 10th each year, and for the period from July to December: January 20th of the following year). In addition, at the end of each year, Japanese corporations are required to make year-end adjustments to resolve the difference between the amount of withholding income tax withheld from employees and the actual amount of tax payable. The difference is basically caused by the monthly withholding amount, which is assumed to be fixed for the whole year, and the deductible items are the same as in the previous year. A Japanese corporation is required to submit a withholding income slip (給与所得の源泉徴収票) and a report on the payment of salaries (給与支払報告書) by January 31 of the following year to complete the year-end adjustments. |
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(6) |
Total table of Statutory Report on Income and withholding tax etc. (給与所得の源泉徴収票等の法定調書合計表)
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(7) |
Consumption Tax
Consumption tax is a tax levied on transactions occurring in goods and services. From October 1, 2019, the consumption tax and local consumption tax rates are 10%. New established Japanese company with a capital of 10 million JPY or less is exempted from the consumption tax payment obligation for 2 financial years (except for a company that has completed the registration as a business issuer of qualified invoice). If its taxable income exceeds 10 million JPY, the company will subject to declare and pay consumption tax from the 1st year.
Kaizen do provide services on consumption tax filing at a fee starting from 88,000 JPY, depending on the annual taxable sales amount. Japan has officially implemented the consumption tax “invoice system” (インボイス制度) from October 1, 2023 (令和5年). The invoice system is also known as the “method of keeping qualified invoices, etc.” (適格請求書等保存方式). This system is a further optimization of the previous system of tax deduction for consumption tax. Only a business issuer of qualified invoice is allowed to issue qualified invoices upon the buyer's request, sellers who wishes to provide a qualified invoice should register as a “business issuer of qualified invoice” (適格請求書発行事業者). Kaizen do provide services on the registration of “business issuer of qualified invoice” at a fee of 28,000 JPY. Please contact our consultants for further information. |
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(8) |
Stamp Tax
Stamp tax is a tax on taxable documents in paper form, such as contracts and invoices, issued from economic transactions, and is payable to the country through the tax bureaus. The specific amount of tax depends on the nature of the contract.
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(1) |
Basic Services on Payroll and Social Insurance Calculations
Employee payroll and social insurance calculations are closely related to labor standards, tax laws, insurance, etc. It is a task that should be accomplished in a short period of time. Usually, this task is performed by a manager, a trusted employee, or a professional The basic scope of payroll calculation services Kaizen provide is as follows: (a) Monthly payroll and social insurance premium calculation. (b) Preparation of a payroll schedule in a specific format (c) Regularly provide payroll and other details to customers in digital format |
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(2) |
Social Insurance Enrollment and Disenrollment Services
Social insurance and labor insurance matters have become increasingly complex with the ongoing revision of related laws in Japan. By entrusting the complicated procedures to a public consultant on social and labor insurance (社會保險勞務士), corporations can significantly reduce the time cost on miscellaneous tasks and concentrate fully on their business operations, as well as reduce labor costs by avoiding the need to hire full-time staff to handle labor matters. A public consultant on social and labor insurance can handle various procedures related to the labor standards inspection office, public employment security office, and Japan Pension Service. The basic scope of social insurance enrollment or disenrollment procedures services Kaizen provided is as follows: (a) Consultation service for social insurance enrollment or disenrollment procedures. (b) Prepare relevant materials for social insurance enrollment or disenrollment procedures. (c) Submit application documents to Japan Pension Service for social insurance enrollment or disenrollment. (d) Collect the acceptance certificate from the Japan Pension Service Office. (e) Hand over the related materials after completing the social insurance enrollment or disenrollment procedures. |
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(3) |
Labor Contract Preparation Service
According to the Japanese Labor Standards Act and the Labor Contract Act, when a Japanese corporation hires an employee, both the corporation and the employee should confirm the contents of the labor contract in written form, specifying the working hours, job content, salary, work location, annual leave and other labor conditions.
Kaizen do provide services in the preparation of a Japanese labor contract with basic labor conditions as stipulated in the Japanese Labor Law at a fee of 35,000 JPY. The above fee does not include attorney consultation services. If you require assistance in preparing a bilingual version of the labor contract, the fee is separately negotiated. In case of special conditions added to the labor contract or consultation with a lawyer is needed, the fee will be separately negotiated. |
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(4) |
Procedures for Separation of Employment
When an employee of a Japanese corporation leaves his/her job, he/she is required to complete the procedures related to social insurance and withholding income tax. Kaizen's fee for assistance with separation from employment starts at 55,000 JPY.
The basic scope of separation from employment services Kaizen provided is as follows: (a) Preparation and submission of “Notification of Loss of Qualification of Employment Insurance” (雇用保険被保険者資格喪失届). (b) Prepare and issue a certificate of separation from employment of qualified employment insurer. (c) Prepare and issue a separation from employment certificate. (d) Preparation and submission of “Notification of Loss of Qualification of Health / Pension Insurance” (健康保険・厚生年金被保険者資格喪失届). (e) Preparation and submission of health insurance certificate to the pension office (to be collected when the employee leaves the company). (f) Prepare and issue withholding income tax slip. (g) Preparation and submission of report on the payment of salaries (給与支払報告書) (if needed). (h) Preparation and submission of “Notification of Changes in Salaried Workers Special Collection” (特別徴収に係る給与所得者異動届出書) (if needed) |
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(5) |
Annual Renewal of Labor Insurance Premiums and Social Insurance Calculation Basis Filing
Since the social insurance premium standards in Japan change every year, Japanese corporations are required to apply for the annual renewal of labor insurance premiums (労働保険料年度更新手続き) and submit report of social insurance calculation basis (社会保険算定基礎届) to the Pension Office in June and July every year. Kaizen service fees for the annual renewal of labor insurance premiums and the filing of social insurance calculation basis are 30,000 JPY each, please contact our consultants for further information.
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(1) |
Registration of the Renewal, Appointment, or Resignation of Director or Member (取締役・社員の重任、委任、辞任登記)
According to the Companies Act of Japan, when a director of a Kabushiki Kaisha or a member of a Godo Kaisha is to be reappointed to the positions thereof after the expiration of his/her term of service, the company is required to register the re-election of such director or member; and if the candidate is to be replaced, the company is required to register the appointment and resignation of the relevant director or member. Kaizen do provide services on the renewal, appointment, or resignation of a director of a Kabushiki Kaisha or a member of a Godo Kaisha at a fee of 260,000 JPY.
If the candidate is a representative director of a Kabushiki Kaisha or a representative member of a Godo Kaisha, the fee for registration of renewal, appointment or resignation will be 300,000 JPY. |
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(2) |
Registration of the Renewal, Appointment, or Resignation of Auditor (監査役の重任、委任、辞任登記)
According to the Companies Act of Japan, when a corporation has an auditor, it is required to register the reappointment or changes of the auditor. Kaizen provides services on the reappointment or changes of an auditor at a fee of 260,000 JPY.
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(3) |
Other Compliant Related Services
In addition to the registrations of directors or auditors mentioned above, any changes in the registered matters (business activities, company name, registered address, amount of capital, residence of directors, etc.) of a Japanese company are required to be filed with the Legal Affairs Bureau of Japan for registration of changes. Kaizen may provide services to handle such registers, please contact our consultants for further information. |
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Item |
Description |
Amount JPY (Excluding Tax) |
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(1)Kabushiki Kaisha/Godo Kaisha Tax-Related Filing Procedures after Incorporation【If Needed】 |
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1.1 |
Notification of Corporation Establishment【One copy for each Jurisdictional Tax Bureau and Prefectural Tax Office】 |
200,000 |
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1.2 |
Application Form for Approval of Filing Blue Return【Jurisdictional Tax Bureau】 |
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1.3 |
Notification of Establishment of a Salary-Paying Office【Jurisdictional Tax Bureau】 |
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1.4 |
Application for Approval Made in Relation to the Special Provision for Due Dates for Withheld Income Tax【Jurisdictional Tax Bureau】 |
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(2)Annual Maintenance Service Fee |
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2.1 |
Annual Agency Services (Including compilation of annual general meeting minutes on the topic related to the annual financial statements for a Kabushiki Kaisha) |
80,000 |
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2.2 |
Shareholders / Directors Meeting Minutes with specified contents. |
TBC |
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(3)Registration Address |
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3.1 |
Taito Ward, Tokyo. Provided by Kaizen |
Virtual Office Address [Please refer to [Kaizen’s Virtual Office] |
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Physical Office Address [Depending on location] |
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(4)Accounting Related Services |
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4.1 |
Monthly Booking Services (Annual sales under 10 million JPY and monthly entries under 50 counts) |
From 37,000 |
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(5)Tax Declaration and Payment Services |
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5.1 |
Preparation and Submission of Annual Corporate Tax Returns【Compulsory】 (Annual sales under 10 million JPY) |
From 220,000 |
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5.2 |
Preparation and Submission of Annual Fixed (Depreciable) Assets Tax Return【Compulsory】 |
From 25,000 |
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5.3 |
Preparation and Submission of Information Returns for Total Table (法定調書合計表)【Compulsory】 |
From 50,000 |
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5.4 |
Preparation and Submission of Withholding Income Tax Returns【Compulsory】 |
From 15,000 |
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5.5 |
Application for Registration as a Qualified Invoice Issuer (適格請求書発行事業者)【When needed】 |
28,000 |
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5.6 |
Preparation and Submission of Annual Consumption Tax (Depends on annual taxable sales) 【When needed】 |
From 88,000 |
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5.7 |
Preparation and Submission of Annual Consumption Tax Returns for Refund Claim(還付申告)【When needed】 (Refund of consumption tax of less than 1,000,000 JPY) |
From 100,000 |
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5.8 |
Preparation and Submission of Size-based Business Tax (When capital exceeds 100,000,000 JPY) 【When needed】 |
From 110,000 |
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5.9 |
Making Payments on-behalf of a Japanese Company (When the company do not have a Japan bank account) 【When needed】 |
25,000 |
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(6)Payroll and Social Insurance Related Services |
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6.1 |
Basic Payroll Calculation Services, Including: (1) Calculation of Monthly Salaries (Including premium of social insurances and withholding income tax) (2) Preparation of Payroll Summary and Details by Specified Format (3) Provision of Payroll Related Documents (Electronic Formats) |
Staff Count |
Monthly |
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1-3 Counts |
38,000 |
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4-5Counts |
46,000 |
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6-10 Counts |
61,000 |
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11-20 Counts |
76,000 |
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21-30 Counts |
91,000 |
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31 Counts or Above |
On Top 24,000 per 10 Counts Added |
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6.2 |
Social Insurance Enrolment (Company) |
Per Submission |
50,000 |
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6.3 |
Social Insurance Disenrollment (Company) |
Per Submission |
40,000 |
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6.4 |
Social Insurance Enrolment (Staffs) |
Per Person and Submission |
From 30,000 |
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6.5 |
Social Insurance Disenrollment (Staffs) |
Per Person and Submission |
From 55,000 |
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6.6 |
Compilation of Standard Labor Contracts (In Japanese Only; Kaizen Specified Format) |
Per Person and Submission |
From 35,000 |
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6.7 |
Annual Renewal of Labor Insurance Premiums |
Per Submission |
From 55,000 |
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6.8 |
Report of Social Insurance Calculation Basis |
Per Submission |
From 30,000 |
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6.9 |
Monthly Salary / Remuneration Change Report for Social Insurance |
Per Person and Submission |
From 15,000 |
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6.10 |
Bonus Payment Report for Social Insurance |
Per Person and Submission |
From 15,000 |
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(7)Other Compliance Maintenance Services |
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7.1 |
Registration of the Renewal, Appointment, or Resignation of Representative Director or Representative Member |
300,000 |
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7.2 |
Registration of the Renewal, Appointment, or Resignation of Director or Member |
260,000 |
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7.3 |
Registration of the Renewal, Appointment, or Resignation of Auditor |
260,000 |
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