Annual renewal of a Japan company | Bejarano ADF Consultants Group PLC

Annual renewal of a Japan company in 2022

Since 2003, Bejarano ADF Consultants Group PLC helps international Clients timely complete their annual Japan entity legal, accounting and tax obligations.

Japan company renewal steps
1. Three months before the Japan company renewal deadline, Bejarano ADF Consultants sends an e-mail to our Client reminding them of upcoming statutory filing and legal requirements.
2. Bejarano ADF Consultants Group PLC’s Financial Controller Ms. Sharon e-mails our multi-national Clients a Japanese renewal invoice.
3. Simultaneously, Bejarano ADF Consultants Group PLC’s in-house Legal and Compliance Department will review the quality and completeness of our Client file. Our Firm may revert to our Client for additional Know Your Customer due diligence documents.
4. After fee payment, Bejarano ADF Consultants Group PLC’s Accounting and Tax Department (ATD) will assist our Client to timely, accurately and completely discharge their annual Japanese legal, accounting and tax obligations.
Independent statutory annual audit steps
If our Client engages Bejarano ADF Consultants Group PLC to assist their company with annual statutory audit, the steps are as follows:
1. A member of Bejarano ADF Consultants Group PLC’s Accounting and Tax Department (ATD) will request from our Client documents relating to their business during the financial year. These include i) trial balance ii) bank statements iii) invoices and iv) other supporting documents related to specific transactions incurred during the financial period.
2. The ATD employee will review the documents received from Client before passing them to the independent auditor in Japan.
3. The auditor will request some additional supporting documents or clarification regarding financials related to our Client’s company.
4. The auditor will issue the audit documents for our Client’s signature after the Client has agreed the draft audited financial statement.
5. Bejarano ADF Consultants Group PLC’s ATD employee will file a corporate tax return for our Client’s company, based on the audit report.
6. The employee will also send an engagement completion e-mail with a copy of summary of obligations to our Client for their records, indicating that Bejarano ADF Consultants Group PLC has fulfilled statutory obligations for our Client’s company.
Japan company renewal fees

Bejarano ADF Consultants Group PLC’s average Japan company renewal fees:

Services Fee (US$)

Secretary and legal registered office fees for 1 year 3,450

Dormant tax return filing + per capita tax due during FYE 2,320
Accounting and tax considerations
- Companies have freedom to choose the accounting period for the company in Japan and the company required to submit a tax return within two months of the financial year end.
- An application to extend the tax return filing date can be made to the National Tax Agency.
- Standard tax rates for small medium enterprise (SME) are:
  
  Taxable income for SME Taxable income for non-SME
  
  Below ¥4 million ¥4 to 8 million Above ¥8 million
  
  1st April 2020 - 31 March 2021 21.42% 23.20% 33.59% 29.74%
- Refer to this webpage for more accounting and tax information in Japan.

Services	Fee (US$)
Secretary and legal registered office fees for 1 year	3,450
Dormant tax return filing + per capita tax due during FYE	2,320

	Taxable income for SME	Taxable income for non-SME
	Below ¥4 million	¥4 to 8 million	Above ¥8 million
1st April 2020 - 31 March 2021	21.42%	23.20%	33.59%	29.74%

Legal and compliance considerations

	Kabushiki-Kaisha (KK)	Godo-Kaisha (GK)
Director/officer requirement	At least one director At least three directors or more required for KK (with board of directors) CPA auditor is required which has at least ¥500 million capital or at least ¥20 billion of liabilities.	At least one representative in Japan.
Minimum Share Capital	¥1	¥1
Incorporation process	Notarisation of Articles of Incorporation from Japanese notary public. Register with Legal Affairs Bureau.	Register with Legal Affairs Bureau
Annual corporate maintenance	Annual shareholders’ meeting Board of directors’ meeting once every three months.	None.

During the Japan company renewal process, our internal legal and compliance team may request additional updated KYC documents. We expect our Clients to timely provide the same. Bejarano ADF Consultants Group PLC may request our Client to sign a re-engagement letter.
Refer to this webpage for detailed legal and compliance considerations in Japan.