âYou are literally throwing away money by not taking a shot at doing business in Japan"
Entering the Japanese market can be a very expensive and intimidating prospect which deters many from even contemplating the idea until the market solidifies in their home country. These are misconceptions that arise from poorly managed companies which had no plan, did not properly test the Japanese market before formerly opening in Japan and ultimately ended their Japan operations at huge losses. It is true that entering the Japanese market can be expensive; but it doesn't have to be if done properly and taking sufficient time to guage the Japanese market. Japan has the second largest biotech market in the world and every serious biotech company should have Japan on its expansion list, particularly at an early stage of development. With rapid advances in biotech occurring daily, those poised to move quickly are able to solidify their place in Japan and secure their future in Asia.
The primary modes of entry into the Japanese market, and approximate associated costs are listed below:
1. Kabushiki Kaisha (K.K.): which is equivalent to an American C-Corporation: It costs around JPY 800,000 ($7400USD) to incorporate a kabushiki kaisha, of any type, including legal charges, notarization charges, stamp duty, filing fees and bank account. It costs JPY 600,000 ($5300USD) and up, to have a tax accountant prepare and file the annual balance sheet, P&L statement and income tax returns. It costs JPY 200,000 ($1700USD) and up, to have an attorney prepare and file minutes of a stockholders meeting or directors meeting. And you will be assessed a minimum annual 'inhabitants tax' (comparable to a local income tax) of JPY 70,000 ($640.00USD).
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2. Godo Kaisha (G.K.): which is equivalent (to some extent) to an LLC. This will cost about USD $3700 to establish and JPY 70,000 (USD $640)/year inhabitant tax even if your company doesnt make a profit.
3. Japan branch office: cost is at least JPY250,000 (USD $2300.00) to register a branch because you must use a shihoshoshi (legal scrivener) to do it. Annual taxes (even if the branch does not trade) are JPY 70,000 ($640.00USD). It will cost you anything from JPY150,000 (USD $1250.00) and up to have a tax accountant prepare the branchâs statutory annual returns.
4. Japan Representative office: Minimal cost (ProGenomics can act as your Representative office for USD $49.00/month)
To do business in Japan effectively, one must establish a presence in Japan. We are in business to help companies such as yours evaluate the potential of entry into Japan.
For those wishing to establish a physical presence in Japan at rock bottom prices prior to doing actual sales activities, the representative office is the best and cheapest way to go.
More about the Japan Representative Office
