Tax and other notices

Having completed the company registration , next it is time to prepare and submit various notices. Each notice is due within a different time frame, usually between ten days and three months after setting up the company. The process must be done in Japanese. Between tax and social insurance, there are numerous notices to be prepared and submitted - many of them to different authorities - so it is common for companies to leave this up to professionals like tax accountants and social insurance consultants.

(1) Reports and notification under the Foreign Exchange and Foreign
  Trade Control Law

When setting up your company's base in Japan, notification must generally be submitted to the BoJ within fifteen days of the company being established (prior notice is also allowed).


(2)Tax notices

Notification of establishment of a business must be submitted to two tax offices: national and prefectural. Many companies have a professional prepare and submit these notices, and if you intend to enter into an ongoing consulting agreement with an accounting or tax affairs office to look after your company's day-to-day accounts, it would be more efficient to have the same office do the aforementioned notices. On the other hand, if you are not considering such an agreement, another option is to have the judicial scrivener that took care of your company registration look after these notices. Fees for this service start at approximately 40,000 JPY.


(3)Social insurance notices

Any company in Japan that employs people is required by law to enter into social and labour insurance: Social insurance refers to health insurance and welfare pension insurance schemes (nursing care insurance is also required in some cases), while labour insurance refers to unemployment insurance and workers' compensation insurance. Many companies engage professionals such as social insurance consultants to take care of these notices, however another option is to have the judicial scrivener that took care of your company registration look after these notices. Fees for this service start at approximately 80,000 JPY.

I. Health insurance

This is a medical insurance scheme covering any illness or injury suffered by employees of the company outside of work. The company and the employee (the insured) share insurance premiums equally; premiums are equivalent to 8.2% of total annual salary.

II. Welfare pension insurance

This is a pension scheme which provides for employees after they retire or become disabled. The company and the employee (the insured) share insurance premiums equally; premiums are equivalent to 13.58% of total annual salary.

III. Unemployment insurance

This scheme aims to provide stability to the lives of employees that become unemployed. There are three insurance premium rates; the applicable rate is determined according to the type of business. With a few exceptions, however, the rate is generally 1.75% of total monthly salary, and the company bears a higher burden of the premiums than the employee.

IV. Workers' compensation insurance

This is an insurance scheme that covers any illness or injury suffered by an employee of the company as a result of work-related causes or when travelling to or from work. Insurance premium rates differ according to the type of business, ranging between 0.5% and 12.9% of total monthly salary. The company pays all workers' compensation insurance premiums.

V. Nursing care insurance

This is an insurance scheme that covers services needed by policyholders that become bedridden, senile, or otherwise need nursing care. Employees between forty and 64 years of age (inclusive) are required to have nursing care insurance coverage. The company and the employee (the insured) share insurance premiums equally; premiums are equivalent to 0.89% of total annual salary.