Japan

Ease of Doing Business in

Japan

This page summarizes Doing Business 2014 data for Japan. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region OECD high income
Income Category High income
Population 127,561,489
GNI Per Capita (US$) 47,870
City covered Tokyo
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
27 23 down -4

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Change in DTF** (% points)
78.60 78.62 down -0.02
 

Starting a Business

Info

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 2014 Rank 120 DB 2013 Rank*** 113 Change in Rank down-7
DB 2014 DTF** (% points) 81.90 DB 2013 DTF** (% points) 81.90 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 Japan 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).

View methodology
Procedures (number)
8 5

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.

View methodology
Time (days)
22.0 11.1

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.

View methodology
Cost (% of income per capita)
7.5 3.6

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.

View methodology
Paid-in Min. Capital (% of income per capita)
0.0 10.4
No. Procedure Time to Complete Associated Costs
1 Make a company seal 3 days JPY 10,000 - JPY 20,000
2 Obtain the certificate of seal registration from the Ward office 1 day JPY 400 (each)
3 Register at the Legal Affairs Bureau of the Ministry of Justice 1-3 weeks 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 (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

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

Explore Economy Data


- OR -

Close