I want to set up a company and start a business in Japan. Can you help me to acquire a visa?
Yes, we can help you. To run a business in Japan, you need a Business Manager visa. We collaborate with administrative scriveners to help you acquire a visa.
*To acquire a Business Manager visa, you need five million yen or more in capital, or you must establish a company which has two or more full-time members of staff, excluding the manager.
I currently live overseas. Can I set up a company in Japan?
Those who live overseas can set up companies in Japan. However, it is very difficult to do so without the cooperation of a resident in Japan, as non-residents cannot, for example, open a Japanese bank account, which is required when setting up a company here. We provide support to people based overseas who wish to set up companies in Japan, so please contact us.
I would like to set up a company in Japan. How much will it cost?
It costs between 300,000 – 350,000 yen to establish a stock corporation (Kabushiki Kaisha), and between 200,000 – 250,000 yen to establish a limited liability company (Godo Kaisha). These amounts include legal expenses, such as registration and license tax, the cost of making a corporate seal, and specialists’ fees.
How much does it cost to acquire a Business Manager visa to run a business in Japan?
It costs around 250,000 – 300,000 yen.
I have set up a company, but I don’t know what I need to do next.
Contact a tax accountant without delay. After setting up your company, you must submit tax-related documents to the tax office. In particular, the Application Form for Approval of Filing Blue Return is an important document which is required to gain tax-saving benefits. As a rule, it must be submitted to the tax office within three months of establishing your business. (There are exceptions to this rule.)
I’ve been a sole proprietor for a long time. Would it be advantageous to incorporate my business?
The rate of income tax imposed on a sole proprietor rises with income. So if revenue and profit reach a certain amount, incorporating your business will result in lower tax payments. Ultimately, when deciding which structure is the most advantageous, it is necessary to consider not only income tax and corporation tax, but also consumption tax and social insurance. Sadywell Japan Tax & Accounting can conduct a multifaceted analysis to determine whether it is better for you to remain as a sole proprietor or to incorporate. We can propose the most advantageous structure for you.
I am setting up a company, but I don’t know how much I should pay the directors.
It is necessary to consider the amount of income tax the individual directors will pay, and also the amount of corporation tax the company will pay, and find the amount which will result in the lowest total amount of tax. Sadywell Japan Tax & Accounting will consider the issue from the perspectives of income tax, corporation tax and cash flow, and calculate the amount of directors’ compensation which will lead to the lowest tax burden.
What will happen if I do not file tax return or do not pay tax?
There are several penalties for not filling tax return or tax evasion, such as penalty tax for late payment, penalty tax for not filing tax return and heavy penalty tax. Especially, if you do not pay tax intentionally or manipulate tax payable amount, heavy penalty tax will be imposed. Heavy penalty tax rate is from 35 % to 45% of your tax payable amount. In the worst case, you will face criminal charges, which is imprisonment of up to 5 years or penalty up to 5 million yen or both of them.
I have my own healthcare coverage and pension plan in overseas. Do I have to pay Japanese social insurance, such as health insurance and pensions fees?
Yes, you have legal obligation to pay for Japanese social insurances. Under the Japanese law, the employees bear 50% of employees’ social insurances and company bear the remaining 50% of the costs. The companies must withhold 50% of employee’s social insurances from their salary and add remaining 50% of social insurances to the withheld amount and pay to the social insurance office. In case you are going back to your country, you can be entitled to receive some refund for your pension fees you paid in Japan.
When is the filing deadline to file corporate tax return and consumption tax return?
Filing deadline and payment deadline of corporate tax return and consumption tax return is within 2 month after the fiscal year end. However, you can extend the filing deadline of corporate tax return for 1 moth if you submit the Application to Extend Filing Deadline to the tax office. Filing deadline of individual income tax return is March 15 of the next following year.
Does the company needs to withhold income tax when it pays salaries to the employees?
Yes, the company has legal obligation to withhold income tax when it pays salaries to the employees and pay the withheld amounts to the tax office before 10th of the next month. Penalty for not paying withheld tax is 10% of withheld tax.
I only speak English. Is this OK?
Yes, it is OK. We can handle all correspondence with you in English.
I currently live overseas. How can I request your services?
We can respond by email, telephone or Skype. First, please use the inquiry form to contact us.
If I request bookkeeping services, how can I give you my invoices and receipts?
We can pick them up when we visit you, or you can send them by post or email. If there are only a few, you can take photographs of them with your cell phone and send the photographs by Line or email. We will use whichever method is the easiest for you.
My office is in my house, so I’d like to have meetings with you outside the office. Is this possible?
Yes, we have space for meetings in our office, so it is fine for you to visit our office instead.
I want to request assistance with my income tax return only. Is this possible?
Yes, it is. Sadywell Japan Tax & Accounting accepts requests for assistance with income tax returns only without a retainer contract. The fee for preparing the income tax return is higher than usual, as we are not checking the accounts throughout the term as with the retainer contract.
We received notice of a tax audit. Are you able to provide support?
Yes, we are. We can also support clients who have not had a contract with us before, so please contact us.
I am the accountant of a Japanese subsidiary of a foreign corporation. I would like you to provide a monthly report in English to the person in charge of accounting in the overseas parent company. Can you provide such a service?
Yes, we can. We can attend telephone conferences to provide monthly reports. We can also prepare explanation materials in English if requested.
In addition to tax accounting services, can you also assist with visa applications and social insurance procedures?
Yes. We collaborate with administrative scriveners and labor and social security attorneys to provide such services.
If I ask a question about something I don’t understand, will I be charged a fee?
A daily question and answer service is included in the retainer contract, so clients who have signed that agreement will not be charged any extra fees.
Do you support individuals?
Yes, we do our very best to support individuals.
I have no accounting experience at all. Is this OK?
It is not a problem. Rest assured that we will explain things simply and provide attentive support. We believe that reducing the burden on those with no accounting experience is one of the roles of a tax accountant.
I am thinking of using QuickBooks for bookkeeping. Can you review the contents?
Yes, by all means. We handle QuickBooks and other English accounting software, so it is not a problem.
I signed up for a plan without a retainer contract. Is it possible to change to the plan with a retainer contract?
Yes, it is by all means possible. After signing an agreement for a plan without a retainer contract, it is possible to change to the plan with a retainer contract according to the circumstances.
I am worried about the total annual fee.
At Sadywell Japan Tax & Accounting, we provide you with an estimate of the total annual fee before you sign a contract with us, so you can consider the cost with peace of mind.
When do I pay the fees?
As a rule, the total annual fee is paid in twelve monthly installments by automatic bank withdrawal. For additional work – and depending on the kind of work – we may send invoices requesting payment once the work has been completed.
With regards to the costs for setting up a company, we request that the fee is paid before we begin the establishment procedures.

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