Email: [email protected]
Phone: +91 11 4057 4057
WhatsApp: +91 98100 86039
Certification: ISO 27001 — International Information Security Standard
Network: EAI International — 145+ countries
Japan is among Asia's leading markets for foreign investment. American technology firms, British asset managers, Singapore holding companies, and French pharma groups establish Japan entities at scale. VJM Global advises on KK and GK formation, JCT registration, j-GAAP accounting, STMA transfer pricing, and India-Japan DTAA structuring.

Japan holds the world's fourth-largest economy and has made attracting foreign investment a national policy priority. Inward FDI stock reached USD 350.6 billion at end of 2023, with a government target of JPY 100 trillion by 2030. Japan operates the largest tax treaty network in Asia — 87 DTAs covering the United States, United Kingdom, Singapore, France, Germany, and India. JETRO's INVEST JAPAN programme supports foreign companies through entity formation and regulatory approvals.
Japan's 87 double tax agreements — Asia's largest network — cover the United States, United Kingdom, Singapore, France, Germany, and India. Treaty relief on fees, royalties, and dividends is available through the NTA claim procedure, provided docs meet STMA requirements.
Japan operates INVEST JAPAN through JETRO, offering site location assistance, regulatory guidance, and licensing co-ordination. The government targets JPY 100 trillion in inward FDI — creating structured policy support for foreign companies establishing Japan entities.
Japan enforces intellectual property through an IP High Court and ranks in the global top tier for patent protection and trade secret enforcement. For technology, pharmaceutical, and R&D companies, Japan's IP framework protects proprietary assets held by Japan subsidiaries.
Japan implemented OECD Pillar Two (IIR) from April 2024, among the earliest in Asia-Pacific, with QDMTT from 2026. Early adoption gives MNEs regulatory clarity for Japan structures, though new STMA reporting applies for groups with consolidated revenue over JPY 100 billion.
The Kabushiki Kaisha (KK) is Japan's standard operating entity for foreign subsidiaries — familiar to banks, counterparties, and regulators. The Godo Kaisha (GK) is a more flexible limited liability vehicle used for investment and technology holding structures. Both allow 100% foreign ownership with nominal minimum capital. VJM Global advises on structure selection from a tax, liability, and operational perspective before registration begins.
| Feature | Kabushiki Kaisha (KK) | Godo Kaisha (GK) | Branch Office | Representative Office |
|---|---|---|---|---|
| Legal Status | Separate legal entity — shares | Separate legal entity — membership interests | Extension of foreign parent | Non-commercial liaison presence |
| Foreign Ownership | 100% permitted | 100% permitted | Parent is the owner | Parent is the owner |
| Minimum Capital | JPY 1 (nominal) | JPY 1 (nominal) | None | None |
| Setup Timeline | 4–6 weeks indicative | 2–4 weeks indicative | 3–5 weeks indicative | 2–3 weeks indicative |
| Japan Taxation | Full Japan corporate tax | Full Japan corporate tax | Japan tax on branch profit | No Japan tax — no commercial activity |
| Best For | Operational Japan subsidiary — most common for foreign companies | Investment vehicles, technology holding, PE fund entities | Testing Japan market with direct parent liability | Market research and liaison only — no revenue |
Most foreign companies entering Japan for commercial operations choose a KK — it is the structure Japanese banks, suppliers, and enterprise clients expect. A GK suits investment vehicles and technology platforms where flexibility matters. VJM Global recommends selecting the right entity before any registration is filed — the correct structure prevents banking complications and costly restructuring later.
VJM Global provides foreign companies with end-to-end Japan professional services — from entity formation through ongoing accounting, tax, and compliance. Core services include KK and GK incorporation, JCT registration and quarterly filing, j-GAAP bookkeeping, annual corporate tax return, payroll, STMA transfer pricing, India-Japan and US-Japan DTA advisory, FEMA ODI filing, and Pillar Two QDMTT analysis. All services are delivered by qualified chartered accountants.
VJM Global serves foreign companies in Japan's primary investment sectors: technology and semiconductors, financial services and asset management, pharmaceuticals and life sciences, automotive supply chains, real estate and infrastructure, and consumer goods. Our team advises US, UK, Singapore, Indian, and European companies on FEFTA notification, STMA transfer pricing, and Pillar Two compliance.
VJM Global serves American technology companies, British asset managers, Singapore-based holding structures, French pharmaceutical groups, Indian IT firms, and European manufacturers establishing Japan entities. We also support existing Japan entities requiring j-GAAP bookkeeping, JCT compliance, annual corporate tax returns, and STMA transfer pricing.
VJM Global supports American technology companies, British asset managers, Singapore-based holding structures, French pharmaceutical groups, and Indian IT companies navigating Japan market entry. Our team advises on KK versus GK selection, FEFTA notification in regulated sectors, JCT qualified invoice registration, and initial j-GAAP accounting and payroll setup — establishing the compliance framework from registration so companies focus on building Japan business.
Many foreign companies operating in Japan have registered their KK or GK independently but require ongoing accounting, JCT, and tax compliance support. VJM Global provides j-GAAP bookkeeping, quarterly JCT preparation and filing, annual blue-form corporate tax return, national and prefectural tax filing, payroll processing, and year-end reconciliation. We also advise on j-GAAP-to-IFRS reconciliation where the Japan entity reports into a parent on IFRS standards.
Foreign companies with Japan entities and related-party transactions exceeding JPY 50 million must prepare STMA-compliant local file transfer pricing documentation. Groups with consolidated revenue over JPY 100 billion must also prepare master file and CbCR. VJM Global provides functional analysis, comparable benchmarking, and arm's length range determination — co-ordinating Japan STMA work with filings in India, Singapore, or the United Kingdom as a single engagement.
Indian companies entering Japan face a dual requirement: FEMA Overseas Direct Investment filing with the Indian parent's Authorised Dealer bank, alongside KK incorporation and j-GAAP accounting. VJM Global manages both sides — FEMA ODI compliance in India and Japan accounting and tax as a single co-ordinated engagement. We also advise on India-Japan DTAA Article 12(2)(6) exposure for Indian IT companies invoicing Japanese clients without a Japan entity.
VJM Global does not separate entity formation from ongoing compliance. From KK or GK registration, we establish j-GAAP bookkeeping, JCT qualified invoice registration, payroll, and the annual tax return framework in parallel. Companies do not face a gap between registration and compliance readiness — the full accounting and tax structure is in place at the point the entity begins trading.
Foreign companies in Japan face cross-border tax on both sides: withholding under Japan's DTA network and transfer pricing under STMA. VJM Global advises on both — co-ordinating Japan STMA work with filings in India, Singapore, or the United Kingdom as a single engagement. Our India-Japan DTAA expertise, including Article 12(2)(6) on technical services, is relevant for Indian companies entering Japan.
Japan's accounting standards (j-GAAP) differ materially from IFRS and US GAAP. VJM Global manages j-GAAP bookkeeping, quarterly JCT preparation, payroll, and the annual blue-form corporate tax return — covering national, prefectural, and municipal components. Where the Japan entity reports into an IFRS parent, we prepare the IFRS reconciliation as part of the monthly package.
VJM Global delivers Japan compliance from qualified chartered accountants in India — combining professional standards with a cost structure that competes with Japan-local rates. Clients receive dedicated oversight on all engagements, from STMA transfer pricing to annual corporate tax, without local fees. This model is available from pre-revenue entities to established Japan operations with over 100 employees.
Foreign companies entering Japan from the United States, United Kingdom, and Singapore choose VJM Global for our cross-border advisory depth. We combine KK formation with immediate compliance — j-GAAP bookkeeping, JCT filing, transfer pricing, and annual tax return from a single team. Indian companies benefit from VJM's position managing FEMA ODI in India and Japan accounting as a single engagement.
Three case studies illustrating how VJM Global has supported foreign companies entering Japan — covering KK formation, JCT compliance, transfer pricing under STMA, and India-Japan DTAA structuring.
Profile: US SaaS company expanding from Singapore to Japan to serve enterprise Japanese clients.
Challenge: KK in six weeks; JCT issuer registration required; IFRS-to-j-GAAP reconciliation for US parent.
VJM Role: KK incorporation — articles, notarisation, Legal Affairs Bureau filing; JCT issuer registration with NTA; j-GAAP bookkeeping with monthly IFRS reconciliation.
Outcome: KK registered on time. JCT issuer number obtained before first Japan invoice. Monthly accounting and JCT on retainer.
Profile: UK asset management firm entering Japan to access institutional investors.
Challenge: KK needed while FIEA licensing progressed; fees exceeded JPY 50M STMA threshold; UK-Japan DTA analysis required.
VJM Role: KK incorporation; j-GAAP accounting; annual tax return; STMA TP local file with functional analysis; UK-Japan DTA analysis and NTA treaty claim.
Outcome: TP submitted within one month of NTA request. DTA rate applied from first payment. Annual retainer established.
Profile: Indian IT company with Japan clients needing a local entity for JCT compliance.
Challenge: DTAA Article 12(2)(6) withholding on technical fees; KK required FEMA ODI; TP needed in both jurisdictions.
VJM Role: DTAA structuring; KK formation; FEMA ODI filing; Form 3CEB and STMA local file as a single cross-border engagement.
Outcome: KK operational — clients invoiced locally, eliminating DTAA withholding. FEMA ODI complete. Bilateral TP delivered.
Japan market entry requires advisory across multiple disciplines. VJM Global covers: KK and GK incorporation, JCT qualified invoice issuer registration with the NTA, j-GAAP bookkeeping, quarterly JCT preparation and filing, payroll for Japanese and expatriate employees, annual blue-form corporate tax return, STMA transfer pricing documentation, and India-Japan DTAA advisory. All requirements are managed within a single engagement.
Japan-based firms provide strong local knowledge but typically operate only within Japan. VJM Global combines Japan compliance capability with cross-border advisory depth — specifically for US, UK, Singapore, and Indian companies with international structures. Where a Japan entity pays management fees or royalties to a non-Japan parent, VJM Global advises on DTA withholding and STMA transfer pricing in the same engagement. For Indian parent companies, we also handle FEMA ODI compliance — work a Japan-only firm cannot undertake. All engagements are managed by qualified chartered accountants.
After KK or GK incorporation, VJM Global provides j-GAAP bookkeeping, monthly management accounts, quarterly JCT preparation and filing, payroll processing, annual blue-form corporate tax return covering national, prefectural, and municipal components, and year-end financial statements. Where the Japan entity has related-party transactions, we maintain STMA transfer pricing documentation updated annually. We operate on a retainer model — providing a consistent advisory relationship.
Foreign companies in Japan face obligations across multiple bodies — the NTA for corporate tax and JCT, the Legal Affairs Bureau for company filings, the Japan Pension Service and health insurance bodies for employee benefits, and sector-specific regulators such as the FSA for financial companies. VJM Global co-ordinates across all of these within an integrated compliance programme. We track filing deadlines, manage registrations, prepare submissions, and flag upcoming requirements — so management focuses on building Japan business.
VJM Global operates on cloud-based platforms appropriate for the client's requirements. For Japan j-GAAP bookkeeping, we work with Xero, widely used by foreign-owned Japan entities for IFRS-to-j-GAAP reconciliation, and with freee, a Japan-local platform with strong JCT and payroll integration. We configure the chart of accounts to meet j-GAAP requirements, set up the monthly closing process, and produce management accounts compatible with parent group reporting. Integration with SAP and Oracle is also available.
Yes. VJM Global advises on Japan strategy from the pre-incorporation stage — covering entity type selection between KK and GK, FEFTA notification requirements in regulated sectors including defence, technology, and financial services, anticipated JCT obligations, and the indicative KK incorporation timeline. We also advise on whether an Employer of Record structure is appropriate before incorporation. Pre-incorporation advisory is available as a standalone engagement.
VJM Global is ISO 27001 certified under the International Information Security Standard — the globally recognised benchmark for information security management. All client data, financial records, tax filings, and transfer pricing documentation are handled within an ISO 27001-compliant framework. Access controls, data encryption, and secure file transfer protocols are applied to all Japan engagements. VJM Global does not use client data for any purpose other than the agreed advisory engagement. Certification is maintained through annual external audits.
VJM Global advises across Japan's primary investment sectors: technology and semiconductor companies navigating FEFTA notification and JCT requirements; financial services firms requiring DTA structuring and Pillar Two compliance; pharmaceutical groups managing j-GAAP bookkeeping; automotive companies within Japanese supply chains requiring STMA transfer pricing; real estate investors with Japan property holdings; and consumer goods companies in Japan through KK subsidiaries. Our team has active clients across all six sectors.
Explore VJM Global's services in other priority markets. Our team supports foreign companies across Singapore, the United Kingdom, the UAE, and India — with the same cross-border depth available in Japan.
Foreign companies entering Japan face multi-layer compliance: KK formation, JCT qualified invoice registration, j-GAAP bookkeeping, annual corporate tax, and STMA transfer pricing. VJM Global manages all of this from qualified chartered accountants with Japan experience. Schedule a consultation to discuss your requirements.
Discuss your Japan market entry strategy with VJM Global's qualified chartered accountants. We cover KK and GK formation, JCT compliance, j-GAAP accounting, transfer pricing, and DTA planning — from a single cross-border team with experience across US, UK, Singapore, and Indian clients entering Japan.
Download VJM Global's Japan Business Entry Guide — covering entity formation options, JCT qualified invoice requirements, j-GAAP accounting obligations, transfer pricing thresholds, and Pillar Two compliance timelines.
Email: [email protected]
Phone: +91 11 4057 4057
WhatsApp: +91 98100 86039
Certification: ISO 27001 — International Information Security Standard
Network: EAI International — 145+ countries
India Office: 0120 4415477-78
WhatsApp: +91-9891576441
Email: [email protected]
Website: www.vjmglobal.com
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