Japan

Ease of Doing Business in

Japan

This page summarizes Doing Business 2015 data for Japan. The first section presents the Ease of Doing Business rank (out of 189 economies) and the distance to frontier (DTF)** measure, overall and by topic. The second section summarizes the key indicators for each topic benchmarked against regional averages.

Economy Overview

 
Region OECD high income
Income Category High income
Population 127,338,621
GNI Per Capita (US$) 46,140
City covered Tokyo, Osaka
Doing Business 2015 Rank Doing Business 2014 Rank*** Change in Rank
29 27 down -2

Doing Business 2015 DTF** (% points) Doing Business 2014 DTF** (% points) Change in DTF** (% points)
74.80 74.94 down -0.14

Viewing the data for

Starting a Business

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The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2015 DTF** (% points) 86.13 DB 2014 DTF** (% points) 86.13 Change in DTF** (% points) 0.00

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator Tokyo OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

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Procedures (number)
8.0 4.8

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

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Time (days)
11.0 9.2

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

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Cost (% of income per capita)
7.5 3.4

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

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Paid-in min. capital (% of income per capita)
0.0 8.8
No. Procedure Time to Complete Associated Costs
1 Search the company name and obtain the certificate of seal registration from the Legal Affairs Bureau 1 day JPY 450 (each)
2 Make a company seal 3 days JPY 10,000 - JPY 20,000
3 Register at the Legal Affairs Bureau of the Ministry of Justice 3 days 0.7% of the capital amount or JPY 60,000, whichever is higher
4 File the notification of company incorporation and the opening of a payroll office; and Apply for the approval of blue tax returns at the District Tax Office 1 day no charge
5 File the notification of commencement of business at the tax office of the municipal or prefectural government 1 day no charge
6 File the necessary labor insurance notifications and employment rules at the Labor Standards Inspection Office 1 day no charge
7 File the applications for health insurance and public welfare pension at the Japan Pension Service Less than one day (online procedure) no charge
8 File the company application for employment insurance at the Public Employment Security Office Less than one day (online procedure) no charge

**The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier. Read more...

***Last year's rankings are adjusted. They are based on 10 topics and reflect data corrections.

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