Tentmaker Reports

Japan Report

Entrepreneurial Missions Index


General Information


127,450,459 (10th most populous country in the world)



Among world’s largest and technologically-advanced producers of motor vehicles, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles, processed foods

Unless otherwise noted, all information included here was obtained from the World Factbook project 4, conducted by the Central Intelligence Agency (CIA). For more detailed information about Japan, visit https://www.cia.gov/library/publications/the-world-factbook/geos/jp.html.

Business Information

The World Bank ranks Japan as 20 out of 183 economies in terms of ease of doing business. The country ranks as 0 (of 183) in terms of ease of starting a business.

It requires 0 procedures, takes 0 days, and costs N/A% of income per capita to start a business in Japan.

In order to start a business in Japan, one must follow these procedures:

  1. Make a company seal
  2. Acquire certificate of seal registration of representative managing member at the Ward office
  3. Register at the head office or a branch of the Legal Affairs Bureau of the Ministry of Justice
  4. File notification of the incorporation of a company, the opening of a payroll office, and application for the approval of blue tax returns with District Tax Office
  5. File notification of the commencement of business with the local tax office (the office of local or prefectural government)
  6. File notifications of commencement of the applied business and labor insurance, the rules of employment with the Labor Standards Inspection Office
  7. File applications for health insurance and public welfare pension with the Social Insurance Office
  8. File application for business establishment of employment insurance with the Public Employment Security Office

Unless otherwise noted, all information included here was obtained from the Doing Business project 3, conducted by the World Bank. For more detailed information about starting a business in Japan, visit http://www.doingbusiness.org/.


To learn more...


Japan Economic Freedom

The World Economic Forum (WEF) was founded in 1971 by Klaus Martin Schwab at the University of Geneva in Switzerland.  It is a non-profit foundation best known for its annual meeting in Davos, Switzerland, which brings together top business leaders, international political leaders, selected intellectuals and journalists to discuss both economic and social issues facing the world.  The WEF also serves as a think tank, and publishes a wide range of reports focusing on issues of concern and importance to Forum communities. In particular, Strategic Insight Teams focus on producing reports of relevance in the fields of competitiveness, global risks and scenario thinking.  The Global Competitiveness Report measures competitiveness of countries and economic competitiveness among a wide range of factors such as corruption, tax rates, work ethic, and many others.
1A General government consumption spending as a percentage of total consumption 4.8
Area 1-A Data 23.6
1B Transfers and subsidies as a percentage of GDP 5.1
Area 1-B Data 18.5
1C Government enterprises and investment 10
Area 1-C Data 13.5
1Di Top marginal income tax rate 5
Area 1-Di Data 50
1Dii Top marginal income and payroll tax rates 5
Area 1-Dii Data 50
1D Top marginal tax rate 5
1 Size of Government: Expenditures, Taxes, and Enterprises 6.2
2A Judicial independence (GCR) 7.3
2B Impartial courts (GCR) 7.2
2C Protection of property rights (GCR) 8.8
2D Military interference in rule of law and the political process (CRG) 8.3
2E Integrity of the legal system (CRG) 8.3
2F Legal enforcement of contracts (DB) 6.7
2G Regulatory restrictions on the sale of real property (DB) 8.1
2 Legal Structure and Security of Property Rights 7.8
3A Money growth 9.3
Area 3-A Data 3.7
3B Standard deviation of inflation 9.9
Area 3-B Data 0.37
3C Inflation: Most recent year 10
Area 3-C Data 0.06
3D Freedom to own foreign currency bank accounts 10
3 Access to Sound Money 9.8
4Ai Revenues from trade taxes (% of trade sector) 9
Area 4-A(i) Data 1.5
4Aii Mean tariff rate 9
Area 4-A(ii) Data 5.1
4Aiii Standard deviation of tariff rates 1.4
Area 4-A(iii) Data 21.5
4A Taxes on international trade 6.5
4Bi Non-tariff trade barriers (GCR) 5.6
4Bii Compliance cost of importing and exporting (DB) 8.6
4B Regulatory Trade Barriers 7.1
4C Size of the trade sector relative to expected 2.2
4D Black-market exchange rates 10
4Ei Foreign ownership/investment restrictions (GCR) 6.1
4Eii Capital Controls 3.8
4E International Capital Market Controls 5
4 Freedom to Trade Internationally 6.2
5Ai Ownership of banks 8
5Aii Foreign bank competition 8
5Aiii Private sector credit 7.2
5Aiv Interest rate controls/negative real interest rates 10
5A Credit Market Regulations 8.3
5Bi Minimum wage (DB) 6.9
5Bii Hiring and firing regulations (GCR) 3.5
5Biii Centralized collective bargaining (GCR) 8
5Biv Mandated cost of hiring (DB) 6
5Bv Mandated cost of worker dismissal (DB) 9.6
5Bvi Conscription 10
5B Labor Market Regulations 7.4
5Ci Price controls 5
5Cii Administrative requirements (GCR) 5.8
5Ciii Bureaucracy costs (GCR) 2
5Civ Starting a business (DB) 9.2
5Cv Extra payments/bribes (GCR) 7.9
5Cvi Licensing restrictions (DB) 7.8
5Cvii Cost of tax compliance (DB) 6
5C Business Regulations 6.2
5 Regulation of Credit, Labor, and Business 7.3
Rank c 30

Japan Summary


1 World Economic Forum

2 Free the World
Gwartney, James and Robert Lawson with Herbert Grubel, Jakob de Haan, Jan-Egbert Sturm, and Eelco Zandberg (2009). Economic Freedom of the World: 2009 Annual Report. Vancouver, BC: The Fraser Institute. Data retrieved from www.freetheworld.com.

3 World Bank Data

4 World Factbook Project

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