An overview of the key considerations for starting a business in Japan, designed for those exploring business opportunities in the country.
Doing business in Japan requires an understanding of the investment environment, as well as the legal, accounting, tax and employment frameworks.
“Doing Business in Japan” is an guide for those interested in establishing or expanding their business in Japan. It explains the key considerations to keep in mind when starting a business.
The guide covers essential information on business structures, accounting and taxation, social security, and employment regulations.
Use it to support your business planning and share information with your overseas head office and other stakeholders.
This guide is based on legislation in force as of 30 September 2026.
For specific matters, please refer to the relevant laws and regulations and seek professional advice.
Under Japan’s consumption tax rules, input tax credits for "adjustable fixed assets" are credited upon acquisition. However, if the use of assets changes within three years, an adjustment is required.
Revenue recognition is a key performance metric affecting financial figures. This article explores examples of differences between accounting and tax treatment in Japan.
Japan has introduced a new documentation preservation regime applicable to specified related-party transactions undertaken in fiscal years beginning on or after 1 April 2026. The provisions in the regime requires taxpayers to obtain or prepare and preserve supplementary documentation where the records already maintained for a covered related-party transaction do not contain the prescribed information concerning the transaction and the calculation of the consideration.