Incorporation Service
Based on our management philosophy “Always for the Growth and Development of Customers,” Gaia Group provides one-stop service for our customers. We offer integrated advice on incorporation service in a prompt fashion as well as careful follow-up after the completion of incorporation.
2. Why Corporation Is A Better Choice for You?
1 Advantages of Gaia
■Takes Only Two Weeks from the Request to the Incorporation Process
We start the meeting upon receiving your request. We complete the required documents while offering advice on the must-decide issues during the meetings in our office. It takes only two weeks in minimum to apply for the registration of incorporation.
■Free Consulting on Incorporation Issues
Do you have questions like “Should I start the business as a sole proprietor or as a corporation?” “How much capital should I put into the business?” “What should I do with the governmental approvals?” If these are the questions that are bothering you right now, please don’t hesitate to use our free consulting service. We are here to help you solve the problems!
■Electronic Articles of Incorporation Saves you JPY 40,000
When the article of incorporation is completed, we undertake the certification of articles at the notary public's office. As we adopt electronic articles of incorporation, JPY 40,000 of revenue stamps can be saved.
■Reduce Your Tax Risk During Incorporation
There are many cases where people suffer a big loss on the corporate tax or consumption tax because they make wrong decisions by themselves on some incorporation matters without asking for professional help, like a licensed tax accountant.
For instance, there is a significant difference of the consumption tax payment in the second term between the circumstances that the capital is JPY 10 million and that the capital is JPY 9.9 million. In order to reduce you tax risk, we will for sure provide you with professional advice on tax issues so you don’t have to suffer the unnecessary loss.
■One-stop Service
We offer various kinds of professional advice on accounting, tax, law etc. in order to satisfy all your needs at one place. We help you with the submission of tax return, bookkeeping, and the employment issue etc.
2 Why Corporation Is A Better Choice for You?
Frequently, our customers ask us this question: which business entity is better, sole proprietorship or corporation? Therefore, here we would like to compare the corporation to the sole proprietorship and explain why we think corporation is a better choice for you. Following is a list of advantages of corporation.
A. Higher Creditworthiness
If you operate your business as a sole proprietorship, you may encounter a lot of difficulties while doing business. For example, it is less likely to get financial loans from banks or government due to lower creditworthiness compared to a corporation. In addition, if you plan to join the Nursing Care Insurance Service, please be noted that the Nursing Care Insurance Service is only available for corporations. Choosing corporation as the business entity will create higher creditworthiness for the business, which will consequently bring more business opportunities compared to sole proprietorship.
B. Less Tax
In general, if a corporation reaches a certain scale in annual sales revenue, it pays less tax than sole proprietorship. That is because Japan adopts progressive taxation for individuals and fixed taxation for corporations. For the individual, the more you earn, the more tax you pay. As for the corporation, the tax rate is fixed no matter how much it earns. You might ask what the threshold is when corporation has definite advantage in terms of paying less tax. JPY 8 million of total net income may be the approximate figure. Furthermore, a corporation with capital amount under JPY10 million has the advantage of not having to pay consumption tax for the first two years.
C. Limited Liabilities
The primary downside to operating your business as a sole proprietorship is that you are personally liable for all of the debts of the business, which is known as having unlimited liabilities. On the contrary, if you operate your business as a corporation, you only have limited liability, which means you are only liable to the extent to your investment in the business.
However, just a little reminder that you are personally liable for the debt under the circumstance that you borrow money from financial institution, such as bank, for personal use.
D. Flexible Settlement Date
The settlement date of a sole proprietorship is December 31, which is decided by law. However, as a corporation, you can decide the settlement date on your own.
E. Owner’s Pension Funds and Life Insurance Can be Recognized as Necessary Expenses
As a sole proprietor, you are not allowed to expense your own pension or that of your family employees as necessary expenses. However, a corporation can recognize the owner’s pension fund and life insurance as expenses. Regarding the life insurance, as a sole proprietor, the maximum deductible amount is JPY 120,000 in total, including JPY 40,000 of general life insurance premiums, JPY 40,000 of pension life insurance premiums and JPY 40,000 of medical insurance. On the contrary, under a corporation entity, if you (owner) are the policy holder and the corporation is the beneficiary, a portion or full amount of premiums can be recognized as expenses.
F. Going Concern
If you operate a business as sole proprietorship, should you pass away, your asset and liability will be the inheritance divided by your family, which may be the end of the business. On the contrary, under a corporation entity, business can continue legally if there is a successor. Furthermore, doing business as a corporation ensures your business partners that you are doing business on a long-term basis. As a matter of fact, some of our customers decided to change from sole proprietorship to corporation in order to pass down the know-how accumulated over the years to the next generation.
3 10 Steps for Incorporation
It takes only two weeks in minimum to undertake the following steps.
4 Fee
Incorporation of Stock Company (Kabushiki Gaisha)： JPY 360,000 (Tax excluded)
Incorporation of Limited Liability Company： JPY 225,000 (Tax excluded)
5 Application for Governmental Approvals
For certain businesses, you cannot operate without a governmental approval. If you operate without a governmental approval, you may be subjected to penalties and fine, suspension of business, or imprisonment. In the case of alteration of registration, if you want to change the registration after incorporation, it will be costly and time-consuming. Thus, it is crucial to make a plan and make a right decision in advance. Following is a list of governmental approvals that we can apply for you. However, please feel free to contact us if what you would like to apply is not on the list.
◆ Contractor’s license
◆ Specified care business license
◆ Building lots and buildings transaction business license
◆ Transportation business license
◆ Industrial waste collection conveyancer’s license
6 Option Services
We Purchase the Seal Set for You
In order to save your time, we can prepare the seal set, which is necessary during the incorporation process, for you. The seal set includes one jitsuin (officially registered seal), one kakuin (square seal), and one rubber stamp, which are gourd-shaped and present an image of high-quality.
We Obtain the Copy of Registration Certificate for You
Our computer is equipped with a system which enables us to obtain the copy of registration certificate in a short period of time. If we place an order by 3 p.m. today, the copies will arrive tomorrow. We always try to satisfy our customers’ needs as efficiently as we can.
We Submit Tax Applications for You
After incorporation, you must submit some documents (see below chart) to the tax offices or government offices. Penalty may occur if you fail to submit in time. However, we can help you deal with these complicated document preparation and submission.
The kind of notification and submission time limit
| To whom | Application Type | Deadline |
|---|---|---|
| Tax Office | Tax Report for Establishment of Japanese Corporation | Within 2 months after incorporation |
| Tax Office | Tax Report for Commencement of Payroll | Within 1 month after incorporation |
| Tax Office | Application for Payment of Withholding Income Tax on A Semiannual Basis | As a general rule, the exception begins the next month after submitting the application. |
| Tax Office | Application for Approval of Filing Blue Return | Three months after the incorporation or the last day of the first term of fiscal year, whichever is earlier |
| Tax Office | Application for Depreciation Method of Depreciable Fixed Assets | Same as the first term of tax return |
| Tax Office | Application for Valuation Method of Inventories | Same as the first term of tax return |
| Capital Prefecture Tax Office | Tax Report for Establishment of Japanese Corporation | Within 1 month after incorporation |
| Municipal Office | Tax Report for Establishment of Japanese Corporation | Within 1 month after incorporation |
| The reward charge for tax matter notification service | JPY 30,000 (tax excluded) No charge for customer who has a consulting contract with us |
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We Apply for Subsidy for You
There are many cases that one can acquire subsidy when starting a new business in Japan. However, you may not know about this kind of information, or how to apply for or where to apply to. Apart from that, the application is rather complicated that many business owners try to avoid it. However, it would be such a waste to give up just because of the complicated application process. That is why we are here to provide the professional assistance for you.
| The reward charge for grant application vicarious execution service | Regarding the fee, our service fee for application will be JPY 50,000 (tax excluded). Our success reward will be 20% of the subsidy, from which the service fee of JPY 50,000 will be deducted. |
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7 How to Establish A Branch of A Foreign Company
First of all, you need to decide the Japanese representatives, and register the establishment of branch of a foreign company at the Legal Affair Bureau. The Japanese representatives can be Japanese or non-Japanese; however, at least one of the representatives is required to have been residing in Japan. Following are the required documents for registration.
◆ Affidavit attested by consul residing in Japan
◆ Certificate of registration of headquarter located overseas
◆ Articles of Incorporation of headquarter located overseas
◆ Letter of appointment of the Japanese representative
◆ Japanese translation of above documents
◆ Certificate of registered seal or signature certificate of the Japanese representative
Please be noted that it is required to report to Bank of Japan for certain industries.
We will provide comprehensive support for you to establish the branch in Japan smoothly.
