Company Formation in Japan

In starting a business in Japan, a businessman should select a type of business form that is most appropriate for his particular business. In determining the form in which to organize his business, the prospective businessman should consider numerous factors in the selection procedure:- The need of limited liability for shareholders in corporations and limited partners in limited partnerships, the differences in income tax treatment of corporations and partnerships, and various costs and complexities of creating and operating corporations and limited partnerships. In Japan, there are many options in selecting a business organization form which are proscribed in the Commercial Code of Japan (sho-ho) and related laws.

Japan is positively ranked as the world's 19th freest economy in the Heritage Foundation's 2010 Index of Economic Freedom, a measure of freedom enjoyed in business, financial, trade, monetary, investment and labour markets. Entrepreneurs investing in Japan should note that a minimum of one director and one shareholder is required to complete Japan company formation. Neither shareholder nor director need be resident in Japan but a resident company representative is required.

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