Comprehensive Guide to Starting a Business in Japan: Taxes, Accounting, and Compliance

Starting a business in Japan involves more than simply registering a company. Entrepreneurs also need to consider Japanese tax rules, accounting and record-keeping requirements, social insurance, consumption tax, tax filing, and important elections that can affect how the business is taxed in the future.

This guide brings together our practical articles on starting and running a business in Japan. It is designed particularly for foreign entrepreneurs and small business owners who need to understand accounting and tax in Japan, including issues that may arise before incorporation, during the first year of business, and as the business grows.

For international business owners, Japanese taxation may also interact with overseas income, foreign companies, U.S. LLCs, foreign tax credits, remittances, and tax residency. For that reason, this guide also includes selected international tax topics in addition to the basic accounting and tax requirements that apply to businesses in Japan.

You do not necessarily need to read every article from beginning to end. Start with the sections that match your current situation, and use this page as a reference as your business develops.

Business Essentials for All Entrepreneurs in Japan

The following topics are relevant to many entrepreneurs operating in Japan, regardless of whether the business is run as a sole proprietorship or through a corporation.

■ Consumption Tax in Japan

■ Accounting Records and Document Retention Requirements

■ Blue Return (Aoiro Shinkoku) Tax System

■ Tax Planning and Tax-Saving Strategies

■Business Manager Visa Renewal

■Social Insurance

■ International Tax and Accounting Topics

■ U.S.-Specific Tax Topics for Japan Residents

If you are moving from the U.S. to Japan, you may also be interested in [one American client’s experience working with our English-speaking tax office in Japan].

■Inheritance & Gift Tax

■ Other Tax and Business Issues to Consider

Additional Considerations for Corporations

If you establish a Japanese corporation, several additional tax and accounting decisions should be considered at or shortly after incorporation.

■Corporate Tax Rates in Japan

■ Key Decisions When Establishing a Company in Japan

■ Corporate Tax Planning and Tax Saving

■ Other Things You Should Know

Need Professional Accounting and Tax Support in Japan?
Some tax and accounting decisions need to be considered soon after starting a business, while others become important only as the business grows. The right approach depends on factors such as whether you operate as a sole proprietor or corporation, your expected revenue and expenses, consumption tax status, director compensation, employees, and whether you have income or business interests outside Japan.
At Koshida Accounting and Tax Office, we provide accounting and tax services in Japan with English support for foreign entrepreneurs and small business owners. Our services include bookkeeping, tax returns, corporate taxation, tax planning, and ongoing accounting and tax advice. We can also help identify issues that may require coordination with other specialists when establishing and operating a business in Japan.
If you are unsure which tax filings, elections, or accounting procedures apply to your situation, please feel free to contact us for a consultation.