Accounting and Compliance Services in Japan

Qualified chartered accountants supporting foreign companies with Japan entity formation, j-GAAP accounting, JCT compliance, and DTAA advisory.

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.

Accounting and Compliance Services in Japan
35+ Years
International advisory
1,500+ Clients
Across 75+ countries
75+ Countries
Direct service coverage
ISO 27001
Certified data security

Why

Japan

?

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 Market at a Glance

USD 4.0 Trillion

Nominal GDP

USD 350.6 Billion

Inward FDI Stock

0.1% Per Annum

GDP Growth Rate

23.2%

National Corporate Tax

10% Standard

Consumption Tax Rate

87 Countries

Tax Treaty Network

122.6 Million

Population

4th Largest Globally

Economy Ranking

Japan's Primary Investment Sectors

Automotive and Manufacturing

Japan is the world's third-largest vehicle producer. US, German, and South Korean Tier-1 suppliers establish Japan KK subsidiaries to serve Toyota, Honda, and Nissan directly. VJM Global supports KK formation, j-GAAP accounting, payroll, and STMA transfer pricing for Japan manufacturers.

Financial Services and Asset Management

Japan operates Asia's deepest capital markets and the world's largest pension fund. UK, US, and Singapore managers enter Japan to access institutional capital. VJM Global advises on KK formation, j-GAAP accounting, DTA withholding and STMA transfer pricing for financial services firms.

Technology and Semiconductors

Japan's semiconductor sector accounts for 15% of global chip output, with investment growing. US, Taiwanese, and European tech firms expand under government incentive programmes. VJM Global supports KK formation, FEFTA advisory, JCT registration, and j-GAAP accounting for tech companies.

Pharmaceuticals and Life Sciences

Japan is the world's third-largest pharmaceutical market backed by universal healthcare. US and European pharma groups maintain Japan entities for regulatory approval and commercialisation. VJM Global supports KK formation, j-GAAP bookkeeping, JCT, payroll, and transfer pricing.

Real Estate and Infrastructure

Japan's real estate and logistics market attracts US, Singapore, and European capital through REITs and direct investment. VJM Global advises on KK formation, j-GAAP accounting, JCT on property transactions, and intra-group lending transfer pricing for real estate holding structures.

Consumer Goods and Trading

Japan's consumer sector is accessed by European and US brands through KK subsidiaries. The sogoshosha model creates complex intercompany trading structures requiring transfer pricing. VJM Global supports KK formation, j-GAAP bookkeeping, JCT, payroll, and annual tax returns.

Why Japan Works for Foreign Business

Asia's Largest Tax Treaty Network

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.

Structured Government FDI Support

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.

World-Class Intellectual Property Protection

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.

Early Pillar Two Implementation

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.

Choose Your Business Structure

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.

Entity Comparison

FeatureKabushiki Kaisha (KK)Godo Kaisha (GK)Branch OfficeRepresentative Office
Legal StatusSeparate legal entity — sharesSeparate legal entity — membership interestsExtension of foreign parentNon-commercial liaison presence
Foreign Ownership100% permitted100% permittedParent is the ownerParent is the owner
Minimum CapitalJPY 1 (nominal)JPY 1 (nominal)NoneNone
Setup Timeline4–6 weeks indicative2–4 weeks indicative3–5 weeks indicative2–3 weeks indicative
Japan TaxationFull Japan corporate taxFull Japan corporate taxJapan tax on branch profitNo Japan tax — no commercial activity
Best ForOperational Japan subsidiary — most common for foreign companiesInvestment vehicles, technology holding, PE fund entitiesTesting Japan market with direct parent liabilityMarket research and liaison only — no revenue

Which entity structure is right for Japan?

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.

Our Services in

Japan

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.

Business Setup and Entity Services

VJM Global manages Japan entity formation — KK and GK selection, articles of incorporation, Legal Affairs Bureau registration, corporate seal, and bank account co-ordination. We advise on FEFTA notification for regulated sectors requiring prior government approval.
Kabushiki Kaisha (KK) Incorporation — Legal Affairs Bureau
Godo Kaisha (GK) Incorporation — Legal Affairs Bureau
Branch Office Registration — Foreign Company
Representative Office Setup — Foreign Company
Articles of Incorporation (Teikan) Drafting & Notarisation

Outsourcing & Managed Services

VJM Global provides j-GAAP bookkeeping on Xero and freee. Monthly services include transaction coding, bank reconciliation, and management accounts for parent group reporting. For IFRS parent groups, we prepare monthly IFRS-to-j-GAAP reconciliation as part of the engagement.
j-GAAP Bookkeeping — Monthly (Freee / Xero / SAP)
Accounts Payable (AP) Management
Accounts Receivable (AR) Management
Bank Reconciliation Services
Fixed Asset Register & Depreciation (j-GAAP)

Tax Services

VJM Global advises on Japan corporate tax — blue-form return covering national, prefectural, and municipal components, DTA withholding planning, Pillar Two IIR and QDMTT analysis, and structuring intercompany arrangements to optimise Japan tax exposure.
JCT Qualified Invoice Issuer Registration (T-Number — NTA)
Japan Exit Tax Planning & Advisory
Corporate Inhabitant Tax — Municipal (Shichoson Minzei)
Transfer Pricing Local File — STMA Compliant (Related-Party Transactions >JPY 50M)
Pillar Two IIR Analysis & Compliance (Japan — from April 2024)

Audit & Assurance

VJM Global provides Japan statutory audit support and j-GAAP financial statement preparation for foreign-owned KK entities meeting audit thresholds. We assist with Legal Affairs Bureau filings and liaison with Japan statutory auditors (kansayaku) under the Companies Act.
j-GAAP Statutory Audit — Large KK (Companies Act)
j-GAAP Financial Statement Preparation & Disclosure
IFRS-to-j-GAAP Reconciliation (Monthly & Annual)
TSE Listed Company Audit & Regulatory Reporting
Internal Audit & Assurance Services

Advisory & Consulting

VJM Global advises at the pre-entry stage — regulatory environment review, sector entry requirements, distributor versus subsidiary model comparison, and Japan government support through JETRO. We provide structured advisory to inform Japan market entry decisions.
Japan Market Entry Strategy & Feasibility Advisory
Business Process Improvement & Operational Excellence
Corporate Governance & Board Effectiveness Advisory
Regulatory Advisory & Government Liaison (METI / NTA / FSA / MoF)
Risk Management Framework & Internal Controls Advisory

Risk & Compliance

VJM Global advises Japan entities on regulatory compliance — NTA audit risk for transfer pricing, JCT compliance for digital services, FEFTA post-investment reporting, AML compliance for financial services entities, and PIPA 2022 data privacy for companies processing Japanese personal data.
PIPA 2022 (Act on Protection of Personal Information) Compliance
AML/CFT Programme Design, Review & Testing
FEFTA Post-Investment Reporting & Ongoing Compliance
Regulatory Change Management & Impact Assessment
Third-Party & Vendor Risk Management

Financial Advisory & Deals

VJM Global provides financial modelling for foreign companies entering Japan — market entry analysis, KK versus GK versus branch comparison, cash flow projections for the Japan subsidiary, and board-level reporting. Intercompany funding structure advisory is also available.
Inbound Japan M&A Advisory & Transaction Support
Cross-Border M&A Structuring (KK / GK Acquisition)
Divestiture & Carve-Out Advisory (Japan)
Joint Venture Structuring & Partner Due Diligence
Financial & Tax Due Diligence — Japan (Buy-Side & Sell-Side)

Legal Services

VJM Global manages Japan company secretarial obligations — director change filings, registered address management, corporate seal, shareholder meeting documents, and subsidiary governance reporting. We coordinate with Japan-qualified legal counsel for matters under company law.
Corporate Governance Advisory (Companies Act / Kaisha-ho Compliance)
Commercial Contract Drafting & Review (Japan Law)
Intellectual Property Protection & Licensing (Japan)
Shareholder Agreement & JV Agreement Structuring
Insolvency & Civil Rehabilitation (Minji Saisei) Proceedings

Human Capital & Workforce

VJM Global advises on Japan employment law — employment contract structure under the Labour Standards Act, mandatory social insurance enrolment, work rules (shugyokisoku) requirements, and secondment agreement structuring for foreign company employees in Japan.
Employee Background Verification — Japan
Work Rules (Shugyokisoku) Preparation, Filing & Review
Shakai Hoken Administration — Kenko Hoken & Kosei Nenkin
Minimum Wage Compliance — Tokyo / Osaka / Regional
Employment Contract Drafting — Japan Law

Technology & Digital

VJM Global configures cloud accounting platforms for Japan entities — Xero and freee for j-GAAP bookkeeping, Japan payroll processing, and data integration between Japan-local systems and parent-group ERP platforms such as SAP and Oracle.
Digital Transformation Strategy & Roadmap (Japan)
Cloud Migration & Infrastructure — AWS / Azure / GCP Japan Regions
RPA & Intelligent Automation — Finance & Compliance Processes
Business Intelligence & Dashboard Development
Custom Software Development & API Integration

ERP & Accounting Software

VJM Global deploys cloud accounting platforms for Japan entities — freee and Xero configured for j-GAAP compliance, and ERP integration between Japan-local systems and parent group platforms including SAP, Oracle, and Microsoft Dynamics. Covers multi-currency and group reporting requirements.

GCC & Shared Services

VJM Global advises Indian companies with Global Capability Centres serving Japan clients — intercompany service agreement structure, India-Japan transfer pricing, FEMA compliance for India-Japan service flows, and JCT treatment of services from the Indian GCC.
GCC / Shared Services Centre Feasibility & Location Advisory (Japan)
GCC Entity Incorporation & Regulatory Setup
GCC Transition Management & Knowledge Transfer
GCC Expansion & Scaling Advisory
Transfer Pricing for Japan GCCs & Shared Services

ESG & Sustainability

VJM Global supports Japan entities with ESG reporting — TCFD-aligned climate disclosure for Japan-listed parents, supply chain ESG due diligence for automotive and electronics supply chains, and sustainability reporting aligned with ISSB standards adopted by Japan's FSA.
TCFD-Aligned Climate Disclosure (TSE Prime Market Mandatory)
ISSB IFRS S1 / S2 Sustainability Reporting Implementation
Supply Chain ESG Due Diligence — Automotive & Electronics
ESG Strategy & Materiality Assessment
ESG Assurance & Third-Party Verification

Strategy & Management Consulting

VJM Global advises on Japan market entry strategy — operating model selection between KK, GK, and branch structures, JETRO support navigation, and business plan preparation for regulatory filings. Structured advisory for companies at the entry and expansion stage in Japan.

Industry Solutions

VJM Global provides sector advisory for foreign companies in Japan — technology and semiconductors, financial services, pharmaceuticals, automotive supply chains, and consumer goods. Each engagement is structured to reflect Japan's sector-specific regulatory requirements.
Financial Services Regulatory Advisory (FSA / FIEA / Banking Act)
FinTech & Payment Services Compliance (Japan PSP Registration)
Asset Management & Fund Advisory (J-REIT / Investment Trust)
Technology & Semiconductor Company Advisory (METI Incentives / FEFTA)
SaaS & Digital Platform JCT & Compliance Advisory

Government & Public Sector

VJM Global advises on Japan regulatory interaction — JETRO INVEST JAPAN support, METI notifications for regulated sectors, NTA advance pricing agreement preparation, and bilateral APA advisory for MNEs seeking NTA-IRS or NTA-HMRC agreements on Japan transfer pricing.
JETRO INVEST JAPAN Programme Support & Navigation
METI Regulatory Notifications & Strategic Industry Compliance
NTA Advance Ruling & Bilateral APA Application Support
Government Grant & Subsidy Advisory (Japan — METI / JETRO Incentives)
Public Sector Accounting & Governance Advisory

Data Analytics & AI

VJM Global provides financial analytics and management reporting for Japan entities — dashboard design for parent company oversight, j-GAAP to IFRS reconciliation reporting, and data integration between Japan ERP systems and group reporting platforms. Covers operational and compliance analytics

Wealth Management & Family Office Services

VJM Global advises high-net-worth individuals with Japan-sourced income or asset holdings — Japan inheritance tax for non-residents with Japan real estate, exit tax implications, India-Japan DTA planning for dual tax residents, and FEMA compliance for Indian nationals.
Japan Inheritance Tax Planning — Non-Resident Property Holders
Cross-Border Wealth & Tax Structuring (Japan-India / Japan-US)
Japan Exit Tax Advisory & Pre-Departure Planning
NRI Japan Income & Repatriation Advisory
Trust & Estate Planning (Japan Context)

Industry Expertise

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.

Technology and Software

  • Why Japan: Japan's semiconductor transformation has drawn US and Taiwanese technology firms to establish KK subsidiaries under METI incentive programmes.
  • VJM Global Services: KK formation, FEFTA advisory, JCT registration, j-GAAP accounting, payroll, STMA transfer pricing
  • Clients Served: US SaaS and semiconductor firms, European technology companies, Indian IT services entering Japan

Financial Services and Asset Management

  • Why Japan: UK and US asset managers have entered Japan to access the GPIF and institutional capital, with Japan's capital markets among the deepest in Asia-Pacific.
  • VJM Global Services: KK formation, j-GAAP accounting, DTA withholding analysis, STMA transfer pricing, Pillar Two IIR advisory
  • Clients Served: UK and US asset managers, French insurance groups, Singapore investment platforms entering Japan

Pharmaceuticals and Life Sciences

  • Why Japan: Japan is the world's third-largest pharmaceutical market. US and European pharma groups maintain Japan KK entities for regulatory approval and product commercialisation.
  • VJM Global Services: KK incorporation, j-GAAP bookkeeping, JCT compliance, payroll, STMA transfer pricing, annual tax return
  • Clients Served: US and European pharmaceutical companies, Singapore life sciences groups, Indian pharma entering Japan

Automotive and Manufacturing

  • Why Japan: Japan is the world's third-largest vehicle producer. US, German, and South Korean Tier-1 suppliers establish KK subsidiaries to serve Toyota, Honda, and Nissan supply chains.
  • VJM Global Services: KK formation, j-GAAP bookkeeping, payroll, JCT compliance, STMA transfer pricing, IFRS reconciliation
  • Clients Served: US, German, and South Korean automotive suppliers, Indian auto-parts manufacturers entering Japan

Real Estate and Infrastructure

  • Why Japan: Japan's real estate market attracts US, Singapore, and European institutional capital through REITs and logistics investment.
  • VJM Global Services: KK formation, j-GAAP accounting, JCT on property, intra-group lending transfer pricing, annual corporate tax
  • Clients Served: US and Singapore institutional investors, European REIT managers, Singapore real estate holding structures in Japan

Consumer Goods and Trading

  • Why Japan: Japan's consumer market is the third-largest in Asia-Pacific. European and US brands enter through KK subsidiaries to access retail and e-commerce channels.
  • VJM Global Services: KK incorporation, j-GAAP bookkeeping, JCT compliance, payroll, royalty DTA planning, annual tax
  • Clients Served: European and US consumer goods companies, Singapore FMCG distributors, Indian consumer brands in Japan

Who We Help

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.

Foreign Companies Entering Japan

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.

Japan Entities Requiring Ongoing Accounting and Tax

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.

Multinational Groups Requiring Transfer Pricing Compliance

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 Expanding to Japan

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.

Why Companies Choose VJM for

Japan

Entity Formation With Compliance From Day One

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.

Cross-Border Tax Expertise Across Both Jurisdictions

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.

j-GAAP Accounting and End-to-End Compliance

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.

Professional Advisory at Competitive Cost

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.

Why foreign companies choose VJM for Japan

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.

By the Numbers

35+ years in cross-border professional services

Years of Advisory

1,500+ active clients across 75+ countries

Clients Served

100+ qualified chartered accountants and specialists

Professionals

75+ countries under direct advisory coverage

Countries Covered

27001

ISO Certified

EAI International — 145+ member countries

International Network

20+ years advising foreign companies on Japan market entry

Japan Market Experience

India-Japan DTAA, STMA transfer pricing, and FEMA ODI — combined cross-border engagements

Japan Expertise

Success Stories

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.

US SaaS Company Japan KK Formation

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.

UK Asset Manager Transfer Pricing and DTA

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.

Indian IT Company DTAA Structuring

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.

Frequently Asked Questions

What services does VJM Global provide for foreign companies entering Japan?

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.

Why choose VJM Global over a Japan-based firm?

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.

What ongoing support does VJM provide beyond company registration?

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.

How does VJM handle multi-regulator compliance for Japan companies?

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.

Does VJM work with Xero or freee for Japan accounting?

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.

Can VJM assist with Japan market entry before incorporation?

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.

How does VJM protect client data for Japan compliance work?

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.

Which industries does VJM specialise in for Japan advisory?

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 Other Markets

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.

United Kingdom

  • Key Benefits: European gateway, 25% corporate tax with R&D reliefs, and advanced financial services sector.
  • VJM Services: Company formation, UK corporate tax, VAT, payroll, transfer pricing, R&D advisory

Singapore

  • Key Benefits: Asia-Pacific hub, 17% corporate tax, ASEAN access, treaty network covering 100+ countries.
  • VJM Services: Incorporation, corporate tax, accounting, GST, payroll, transfer pricing, holding advisory

UAE and Dubai

  • Key Benefits: Zero corporate tax on qualifying activities, 100% foreign ownership in free zones, MENA gateway.
  • VJM Services: Free zone setup, UAE corporate tax, VAT, payroll, FEMA advisory, transfer pricing

India

  • Key Benefits: Large domestic market, cost-competitive operations, extensive DTA network, and gateway for Asian expansion.
  • VJM Services: Incorporation, GST, corporate tax, payroll, FEMA advisory, transfer pricing

Ready to Start Your

Japan

Journey?

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.

Schedule Free Consultation

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.

Book Your Free Call

Download

Japan

Business Guide

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.

 Download Free Guide

Trust Indicators

Email: info@vjmglobal.com

Phone: +91 11 4057 4057

WhatsApp: +91 98100 86039

Certification: ISO 27001 — International Information Security Standard

Network: EAI International — 145+ countries

Contact

India Office: 0120 4415477-78

WhatsApp: +91-9891576441

Email: info@vjmglobal.com

Website: www.vjmglobal.com

Locations

Delhi | Noida | Mumbai | Bangalore | Chennai | Pune