Japan vs Taiwan

Foreigners commonly set up a Kabushiki Kaisha (KK) or the simpler Godo Kaisha (GK). Formation involves preparing articles (notarised for a KK), depositing capital and registering with the Legal Affairs Bureau, followed by tax and social-insurance filings.

You reserve the company name with the Ministry of Economic Affairs (MOEA), verify the paid-in capital through a CPA, and register the company with the MOEA. Foreign investment needs approval from the Investment Review Office; after registration you complete tax registration and receive a unified business number.

Japan's banking mixes megabanks, regional banks and Japan Post Bank, and cash is still widely used. Foreigners can open accounts, usually needing a residence card, a Japanese address and often a phone number; some banks require a few months of residence.

A valid Alien Resident Certificate (ARC) plus your passport is the standard way to open a personal account; you also need a local phone number, an email and proof of a Taiwan residential address (not a PO box or hotel). Without an ARC you can open a basic savings account at Chunghwa Post using a Record of ID No., and some banks accept a passport with a temporary immigration ID at their discretion. The FSC regulates banks and the Central Deposit Insurance Corporation insures deposits. A company uses its registration documents.

Japan promotes inward investment through JETRO, with generally free capital movement. Investments in designated sensitive sectors need prior notification under the Foreign Exchange and Foreign Trade Act (FEFTA); incentives include subsidies, special zones and support for R&D and regional projects.

Taiwan attracts foreign investment through InvestTaiwan, but foreign investment generally needs Foreign Investment Approval (FIA) from the Investment Review Division of the Ministry of Economic Affairs. Most sectors are open (mainland-China capital is restricted); incentives support high-tech and innovation, and profits repatriate through banks with reporting.

Japan levies national income tax (National Tax Agency) plus local inhabitant tax, and a consumption tax on most goods and services. Residents are taxed on worldwide income, with distinct rules for non-permanent residents.

Taiwan taxes residents on Taiwan-source income at progressive rates (with a separate alternative minimum tax on certain foreign income). You use your ID/tax number, employers withhold monthly, and the annual income tax return is filed in May; business tax (VAT) applies.

Foreigners work in Japan on a status of residence matching the job — most commonly 'Engineer/Specialist in Humanities/International Services'. You usually need a Certificate of Eligibility (CoE) obtained by the employer before applying for the visa. The Immigration Services Agency oversees the system.

Skilled foreign professionals can use the Employment Gold Card, a combined work permit, resident visa and residence permit; otherwise the employer applies for a work permit from the Ministry of Labor and you obtain a resident visa and an Alien Resident Certificate (ARC).

Japanese employment is governed by the Labour Standards Act: prefectural minimum wages, capped overtime (via a '36 Agreement'), and paid annual leave from 10 days after six months. Dismissal is difficult and must be objectively reasonable; workplaces with 10+ staff need written work rules. The Labour Standards Inspection Office enforces the law.

Taiwanese employment under the Labor Standards Act sets a statutory minimum wage, special (annual) leave rising with service, a 6% employer pension contribution, and labour insurance plus National Health Insurance. Dismissal needs statutory grounds with severance and notice, and disputes go through mediation and the labour courts.

Japanese imports and exports clear through Japan Customs via the NACCS electronic system. You classify goods by HS code to find customs duty, pay consumption tax (10%) on imports, and check whether METI licences apply under the Foreign Exchange and Foreign Trade Act. Advance rulings give classification certainty; disputes go through Customs.

Taiwanese trade clears through the Customs Administration. Traders register with the Bureau of Foreign Trade, classify goods by the CCC code (HS-based), and pay import duty plus 5% business tax (VAT) and, on some products, commodity tax. Declarations are electronic; certain goods need import permits.

Japanese trademarks are registered with the Japan Patent Office (JPO). You search the register, file an application classifying goods/services under Nice, and the JPO substantively examines both absolute and relative grounds. After you pay the registration fee the mark registers, with a two-month post-registration opposition window. A Japanese trademark lasts 10 years and is renewable.

Taiwanese trademarks are registered with the Taiwan Intellectual Property Office (TIPO). You search the register, file under Nice classes, and TIPO substantively examines the mark before registration, with post-registration opposition available. A Taiwanese trademark lasts 10 years and is renewable; Taiwan is not a Madrid member, so file directly.