Laws & Regulations onSetting Up Business in Japan

Preface

The Japan External Trade Organization (JETRO) has long provided various resources for foreign businesses interestedin setting up operations in Japan in order to promote FDI."Laws & Regulations on Setting Up Business in Japan" is a JETRO booklet designed with the foreign business inmind, providing information on laws, regulations and procedures on registration of incorporation, visas, taxes,human resource management, and trademark and design protection systems. First published in October 2004, the5

edition has now been revised to incorporate changes in these areas since then.It is our hope that this publication will serve as an excellent resource for companies planning to establishoperations in Japan and will make doing business in Japan easy.Interested investors are also encouraged to visit our website at http://www.investjapan.org, which provides notonly the same information as this booklet but also updates on amendments and other changes to investment-related systems and institutions.October 2009

Invest Japan Division, Invest Japan DepartmentJapan External Trade Organization (JETRO)

Contents

Types of operation in JapanComparison of types of business operationProcedures for registering establishmentInformation listed in articles of incorporationCertificate on registered company informationand company seal registration certificateClosure of branch offices or subsidiary companiesEntry proceduresRelation between visa and status of residenceProcess from acquisition of Certificate ofEligibility to acquisition of visaTypes of working statusesTemporary visitor visa and statusReciprocal visa exemptions for temporary visitorAlien registrationRe-entry permissionFamily members accompanying working foreign nationalsExtension of period of stay and change of statusof residenceOverview of Japanese tax system for investment in JapanDomestic-sourced incomeOverview of corporate income taxes (corporate tax,corporate inhabitant tax, enterprise tax)Overview of withholding income taxTax treatiesOverview of consumption taxOverview of personal tax systemOther principal taxesOther taxation regarding international transactions

Incorporating Your Business

1.11.21.31.41.51.6

Visas and Status of Residence

2.12.22.32.42.52.62.72.82.92.10

Taxes in Japan

3.13.23.33.43.53.63.73.83.9Application of lawsRecruitmentLabor contractsWagesLegislation on working hours, breaks and days offWork rulesSafety and hygieneResignation and dismissalJapan's social security systemLegislation on trademark and designJapan's trademark systemValidity and term of trademark registrationCancellation of trademarksThe registration processInternational registration of trademarksProtection of designsThe registration process

Human Resource Management

4.14.24.34.44.54.64.74.84.9

Trademark and Design Protection Systems