🇯🇵 Annual Compliance — Japan

Underestimating the seal (Hanko) requirements

Fix: Order your company seals (representative seal, bank seal, corporate seal) early in the incorporation process. The representative seal must be registered with the Legal Affairs Bureau and is required for nearly all official transactions. Budget 2–5 days for seal preparation and ensure you store them securely — a lost registered seal requires a formal replacement process.

Attempting to open a bank account immediately after incorporation

Fix: Many Japanese banks will not open accounts for newly registered companies, especially those with foreign directors and no operating history. Prepare a detailed business plan in Japanese, secure a physical office address, and consider starting with an online bank (GMO Aozora, PayPay Bank) before approaching a major bank. Some founders use their personal Japanese bank account for initial transactions.

Choosing a KK when a GK would suffice

Fix: If you are not raising equity capital or pursuing an IPO, a GK saves JPY 90,000 in registration tax and eliminates the notarization requirement. Evaluate your actual business needs before defaulting to a KK. A GK can be converted to a KK later if your needs change.

Neglecting to register with all three tax offices after incorporation

Fix: After incorporation, you must separately notify the national tax office (Zeimusho), the prefectural tax office, and the municipal tax office. Missing any of these filings can result in penalties and delays in tax processing. Engage a Japanese tax accountant (Zeirishi) to handle all post-incorporation tax notifications.