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World's third largest economy with strong IP protection
Region
ASIA PACIFIC
Corporate Tax
23.2%
Setup Time
3 weeks
Currency
JPY
Japan, the world's third-largest economy, offers access to a wealthy and sophisticated consumer market. Company registration follows specific protocols, but the market scale and technological leadership support substantial business setup.
With a population of 125 million, Japan offers unique living experiences from massive Tokyo to historic Kyoto. Japanese is the official language, with limited English proficiency generally. The climate varies from subtropical Okinawa to cold Hokkaido.
Healthcare is excellent through mandatory insurance. Safety is outstanding with very low crime rates. The cost of living is high, particularly in Tokyo. Housing is notably compact.
Cultural adjustment is significant but the quality of life, safety, and infrastructure are exceptional.
Corporate tax combined with local taxes creates effective rates around 30%. Personal income tax reaches 45% plus resident tax. Consumption tax (VAT equivalent) is 10%.
The yen is a major global currency. Japan's technological sophistication, manufacturing quality, and wealthy consumer base drive opportunities. The aging population creates both challenges and markets.
Company registration requires Articles of Incorporation authentication and commercial registration. The Kabushiki Kaisha (KK, stock company) is common for foreign subsidiaries. The Godo Kaisha (GK, LLC equivalent) offers flexibility.
Company formation takes approximately 2-4 weeks. KK requires minimum capital of JPY 1 (technically). At least one director is required. For KK with Board of Directors, representative director must be Japan-resident in some cases.
The Financial Services Agency (FSA) licenses crypto asset exchange service providers under the Payment Services Act. Japan was among the first major economies to implement comprehensive crypto license frameworks following the Mt. Gox collapse.
The regulatory approach is sophisticated, providing clear compliance pathways for established operators.
Gambling is generally prohibited, with limited exceptions for public sports betting and recently authorized integrated resorts (casino complexes). Online gambling license opportunities are essentially nonexistent.
The Japanese language is essential for most market engagement. Business culture requires patience and relationship building. The declining population creates workforce challenges.
Banking access is available through major Japanese and international banks. Professional services are highly developed. Japan's unique market rewards committed long-term investment.
Japan suits businesses targeting Japanese consumers, technology companies, and manufacturers requiring Japanese partnerships for their business setup.
Local: GK
Local: KK
Local: Branch
| Corporate Tax Rate | 23.2% |
| Personal Income Tax Rate | 45% |
| VAT / Sales Tax | 10% |
| Capital Gains Tax | 20.315% |
| Withholding Tax | 15% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | MEDIUM |
| Financial Privacy | MEDIUM |
| Currency Controls | SOME |
| Local Bank Account Required | No |
| Non-Resident Bank Account Allowed | Yes |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | Yes |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | No |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $10,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF Travel Rule fully implemented |
| Business Plan Required | Comprehensive business plan required with detailed operational procedures |
| Personnel Required | CEO, compliance officers, experienced management with Japanese financial institution background preferred |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | FSA maintains public list of registered Crypto Asset Exchange Service Providers |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Financial Services Agency (FSA), Japan Virtual and Crypto Assets Exchange Association (JVCEA) |
| Licensing Fee | $150,000 |
| Licensing Fee Details | ¥150,000 registration and license tax, plus significant professional fees for application preparation (¥200,000-¥500,000+) |
| Permitted Business Models | Crypto Asset Exchange, Crypto Asset Custody, Crypto Asset Brokerage, Electronic Payment Instrument Issuance (stablecoin) |
| Permitted Activities | Trading, custody, exchange, intermediation, stablecoin issuance (with separate license) |
| Restricted Activities | Derivatives trading requires separate FIEA registration, ICO/STO subject to securities regulations |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Derivatives Allowed | Yes |
| RWA Tokenization Allowed | Yes |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Capital Maintained in Account | No |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A |
| Business Plan Required | Comprehensive IR Area Implementation Plan required |
| Personnel Required | Strict background checks on all officers, directors, employees, and persons with 5%+ ownership |
| Insurance Required | Yes |
| Insurance Details | Comprehensive insurance requirements for casino operations |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | No |
| Registry Public | Yes |
| Registry Access | Japan Casino Regulatory Commission (JCRC) maintains licensed operator registry |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Monthly |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | No |
| Regulators | Japan Casino Regulatory Commission (JCRC) |
| Licensing Fee Details | Casino license fees determined by JCRC, gaming tax is 15% GGR from Japanese residents, 15% from foreign visitors |
| Permitted Business Models | Land-based casino within Integrated Resort only |
| Permitted Activities | Baccarat, blackjack, poker, roulette, sic bo, craps, Casino War, money wheel, pai gow, electronic table games |
| Restricted Activities | Online gambling prohibited, maximum 3 IR casino licenses nationwide, casino area limited to 3% of IR total floor space |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $50,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant |
| Business Plan Required | Detailed business plan with financial projections and operational procedures required |
| Personnel Required | Directors with financial industry experience, compliance officer, qualified personnel with relevant registrations |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | Yes |
| Registry Access | FSA maintains public list of licensed financial institutions at https://www.fsa.go.jp/en/regulated/licensed/index.html |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Financial Services Agency (FSA) |
| Licensing Fee | $150,000 |
| Licensing Fee Details | ¥150,000 registration tax for Type I FIBO; Type II FIBO ¥10M capital requirement; Fund Transfer Service Provider varies by type (Type I requires license, Type II/III registration) |
| Permitted Business Models | Type I Financial Instruments Business, Type II Financial Instruments Business, Investment Advisory, Investment Management, Fund Transfer Services (Type I/II/III) |
| Permitted Activities | Securities dealing, brokerage, investment advisory, asset management, fund transfer services up to ¥1M (Type II) or unlimited (Type I with license) |
| Restricted Activities | Banking requires separate license, insurance requires separate license |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |