Cost
“What are the exact costs and obligations associated with setting up a business in Japan?”
J-Seed typically charges 500,000 Yen (plus 5% consumption tax) to start a branch office and 1,000,000 Yen (plus 5% consumption tax) to start a subsidiary. The stated prices include all filing fees. Quotes are firm and will not change as long as the scope of the work is not increased. Additional charges that might arise due to additional services required by the client will be discussed upfront before any work is done.
A subsidiary must also place the amount of its initial capital (e.g., 10 million yen) temporarily in a local bank account as a legal requirement, but these funds may be used for startup expenses a few days after the account is opened.
Another key decision you face is whether to open your own office or use a shared office facility. The monthly cost of a shared office in Japan runs from about 200,000 yen to 800,000 yen, with about 300,000 yen as the typical up-front payment for deposits. Start-up costs for your company’s own office in Japan typically start from about 300,000 yen for a 5 person office. Many foreign companies are surprised to learn that the initial cost of securing an office may equal or exceed 10-month’s rent (i.e., first month’s rent, 6-months’ security deposit, 2-months’ key money, and broker’s fee). Typically, only about half of the security deposit will be refunded at the end of the lease. As mentioned previously, J-Seed can introduce a dependable real estate agent used to meeting the requirements of overseas clients at a competitive price.
The next major decision is whether to use the services of a shared secretary provided by a shared office service or to hire your own staff in Japan. Typical annual salaries including benefits run about 4-5 million yen for office help, 6-15 million yen for salespeople and 5-10 million yen for technical support staff. Recruiters normally charge about 30-35% of the candidate’s first-year salary. J-Seed can introduce its preferred recruiting supplier, which is a firm dedicated to serving foreign companies in Japan as well as its preferred suppliers in IT infrastructure, accounting and other areas.
Cost examples
Start-up Cost* |
Monthly Cost |
|
|---|---|---|
| Unmanned virtual office | 2 million yen | 150,000 yen |
| One-person operation (shared office) | 4 million yen | 1 million yen |
| Four-person operation (independent office) | 6 million yen | 4 million yen |
*including J-Seed fee for the setup of a subsidiary
To personally discuss the likely start-up and operating costs that will come with your company’s optimal entry strategy for Japan, please contact us directly.
