#

Ease of Doing Business in

Japan

Japan Download Profile (1996.9KB, pdf)
Region OECD high income
Income Category High income
Population 126,958,472
GNI Per Capita (US$) 36,680
City covered Tokyo, Osaka

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 34 32 down
2
75.53 75.36 down
0.17
Starting a Business 89 81 down
8
86.09 86.09
-
Dealing with Construction Permits 60 58 down
2
73.33 73.32 up
0.01
Getting Electricity 15 14 down
1
89.88 89.88
-
Registering Property 49 49
-
73.91 73.91
-
Getting Credit 82 78 down
4
50.00 50.00
-
Protecting Minority Investors 53 51 down
2
60.00 60.00
-
Paying Taxes 70 71 up
1
77.03 75.32 up
1.71
Trading across Borders 49 49
-
86.43 86.43
-
Enforcing Contracts 48 48
-
65.26 65.26
-
Resolving Insolvency 2 2
-
93.34 93.41 down
0.07

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

Viewing the data for

DB 2017 DTF (% points):

73.91

DB 2016 DTF (% points):

73.91

Change in DTF (% points):

0.00

STANDARD PROPERTY TRANSFER
Property value JPY 204,714,347
City Tokyo
Indicator Tokyo OECD high income
Procedures (number) info_outline 6 4.7
Time (days) info_outline 13 22.4
Cost (% of property value) info_outline 5.8 4.2
Quality of the land administration index (0-30) info_outline 24.5 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    The seller obtains a certificate of evaluation for fixed asset tax of the real property at a local tax office

    Agency: Local Tax Office

    The seller must obtain a certificate of evaluation for fixed asset tax of the real property before the registration application. This should be obtained for the transaction because such certificate must show the most updated evaluation and will be used later to calculate taxes to be paid. It can be obtained from a relevant local tax office, which governs the relevant real estate. The cost of the issuance is JYP 400 for land and JPY 400 for building.

    1 day (simultaneous with Procedures 2, 3, and 4) JPY 400 for land + JPY 400 for building
    * 2

    Obtain stamps for stamp duty at a post office

    Agency: Post Office

    Stamps for stamp duty can be purchased at various places, such as post offices. Stamp is the sole official cost for execution of the sale agreement, if a written agreement is prepared. The preparation and execution of a written sale agreement is not necessary. Even an oral agreement is acceptable for transferring the title to the real estate, although usually a written agreement is prepared.

    1 day (simultaneous with Procedures 1, 2, and 4) JPY 80,000
    * 3

    Obtain a corporate registry certificate

    Agency: Legal Affairs Bureau

    The parties (as companies) must obtain a corporate registry certificate that must be issued within 3 months before the registration application. It can be obtained from a relevant registry office of a corporate registry at which the party is registered. The cost is JPY 600 per copy, JPY 480 if obtained online.

    Less than a day (online procedure simultaneous with Procedures 1, 2, and 4) JPY 600 each copy or JPY 480 each copy online
    * 4

    Obtain a certificate of Seller's seal impression (inkan shomei)

    Agency: Legal Affairs Bureau

    Seller must obtain a certificate of its seal impression for the seal used for execution of the registration documents, which must be issued within 3 months before the registration application. It can be obtained from the Legal Affairs Bureau (homukyoku).

    Less than a day (online procedure simultaneous with Procedures 1, 2, and 3) JPY 450 each copy JPY 390 online
    5

    File an application at the Legal Affairs Bureau

    Agency: Legal Affairs Bureau

    The parties file an application for registration at the Legal Affairs Bureau. The Legal Affairs Bureau will register the title under the name of the new owner.

    A registration and license tax must be paid at the Legal Affairs Bureau at the amount of 2% of building value plus 1.5 % of land value.

    As registration is a requirement for perfection vis-à-vis third parties, reviewing the certified copy of the real property registry is generally sufficient for identifying any existing perfected encumbrances over the real property. The parties may apply for registration by themselves. However, because of the complexity of filing, usually they retain a judicial scribe for registration.

    There is a 5% consumption tax in Japan. Sales or leases of land are exempted. However, if the transaction includes the sale or lease of buildings, consumption tax applies only to the price of the building.


    The documentation shall include:

    • Executed original copy of the purchase and sale agreement (alternately a copy of registration application signed by the seller and the buyer)

    • "Certificate of registration of seller's title of the real property (toukizumi kenri sho) or registration identification code (touki shikibetsu joho) (Already in his possesion)"

    • Certificate of corporate registry of the parties (if any of them is a corporation) (obtained in Procedure 1)

    • Certificate of the parties’ seal impression (obtained in Procedure 2)

    • Certificate of evaluation for fixed asset tax of the real property (obtained in Procedure 3)

    • Power of attorney of the seller (if a judicial scribe applies for the registration on behalf of any of the parties)

    7-10 days 2% of building value + 1.5% of land value evaluated for fixed asset tax (registration and license tax)
    6

    Payment of the real property acquisition tax

    Agency: Local Tax Office

    This is a post-closing matter, the purchaser will receive the notice of the real property acquisition tax from the local tax office a few months after the registration. The real property acquisition tax must be paid at the local tax office.

    1 day 4% of property price evaluated for fixed asset tax

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 24.5
    Reliability of infrastructure index (0-8) 8.0
    What is the institution in charge of immovable property registration? Legal Affairs Bureau
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital 2.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? Yes 1.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital 2.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? Yes 1.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Single database 1.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? Yes 1.0
    Transparency of information index (0–6) 3.5
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Anyone who pays the official fee 1.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://www.moj.go.jp/MINJI/minji72.html https://www.touki-kyoutaku-onlin...
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, online 0.5
    Link for online access: link: https://www.nta.go.jp/taxanswer/inshi/7191.htm
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? Yes 0.5
    Number of property transfers in the largest business city in 2015: 132000
    Who is able to consult maps of land plots in the largest business city? Anyone who pays the official fee 0.5
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, online 0.5
    Link for online access: http://www.touki-kyoutaku-net.moj.go.jp/ http://www.moj.go.jp/MINJI/min...
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 8.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? Yes 2.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? Yes 2.0
    Are all privately held land plots in the economy mapped? Yes 2.0
    Are all privately held land plots in the largest business city mapped? Yes 2.0
    Land dispute resolution index (0–8) 5.0
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? No 0.0
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Registrar.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Registrar.
    Is there a national database to verify the accuracy of identity documents? No 0.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? District Court
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Between 1 and 2 years 2.0
    Are there any statistics on the number of land disputes in the first instance? No 0.0
    Number of land disputes in the largest business city in 2015:
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0