Part 4: Essential Procedures After Establishing a Godo Kaisha (GK)

Once the registration of your Godo Kaisha (GK) is complete, the operation of your business can officially begin. However, to ensure smooth business management, there are several important post-registration procedures, such as filing notifications with the tax office, enrolling in social insurance, and opening a bank account. This article explains these essential steps in detail.

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1. Notifications to the Tax Office

One of the first steps after incorporation is to submit notifications to the tax office. Failure to file the required notifications as a corporation may lead to tax penalties, so make sure to complete these steps.

(1) Submission of Corporate Establishment Notification
Within two months of incorporation, you must submit the “Corporate Establishment Notification” to the tax office. This document should include the following information:

• Basic information such as the company’s name, address, and date of establishment
• Description of business activities
• Information on representatives and directors

In most cases, you will also need to attach the Certificate of Registered Matters and a copy of the Articles of Incorporation, so prepare these in advance.

(2) Application for Blue Form Tax Return
Japan’s “blue form” tax return system offers certain tax benefits. To qualify, you must submit the application within three months of incorporation or by the end of the first fiscal year, whichever comes sooner. With blue form approval, you may be eligible for benefits such as loss carryforwards and various deductions, so it is particularly advisable if you are considering tax-saving options.

(3) Notification of Payroll Office Opening
If your company plans to pay salaries to employees, it is required to withhold income tax. Submit the “Notification of Payroll Office Opening” to the tax office within one month of establishment to start the payroll process. Once submitted, you will be responsible for withholding and remitting payroll taxes monthly.

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2. Notifications to Prefectural and Municipal Tax Offices

In addition to notifying the tax office, you must also submit a corporate establishment notification to the prefectural and municipal tax offices, which registers your business for local taxes (corporate resident and enterprise tax).

• Submission Locations: The local prefectural tax office and the municipal office for the company’s location.
• Deadline: Within one month of incorporation.

These notifications are necessary to register your company for local taxes, so be sure not to overlook this step.

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3. Enrollment in Social and Labor Insurance

If you plan to hire employees, your company must enroll in social and labor insurance programs to ensure compliance and provide employee benefits.

(1) Social Insurance Enrollment
Social insurance includes health insurance and employee pension insurance. The enrollment process is completed at the social insurance office in the jurisdiction where your company is located.

• Required Documents: Health Insurance and Employee Pension New Enrollment Notification and Employee Qualification Acquisition Notification (for each employee).
• Deadline: Within five days of incorporation.

(2) Labor Insurance Enrollment
Labor insurance includes workers’ compensation insurance and employment insurance. Workers’ compensation covers all employees, while employment insurance applies to employees working 20 hours or more per week.

• Required Documents: Labor Insurance Establishment Notification and Employment Insurance Establishment Notification.
• Submission Locations: Labor Standards Inspection Office (workers’ compensation) and Hello Work Public Employment Security Office (employment insurance).

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4. Opening a Corporate Bank Account

Opening a corporate bank account is essential for managing daily business finances and transactions with clients and partners. Proof of company registration is required to open a corporate bank account.

(1) Documents Required to Open a Bank Account
Required documents may vary by bank, but generally, the following are needed:

• Certificate of Registered Matters (issued within three months)
• Copy of the Articles of Incorporation
• Representative’s personal identification
• Company seal and registered seal certificate

(2) Choosing a Bank and Preparing for the Process
As banks have become stricter with corporate account screening, be ready to clearly explain your business plan and provide detailed company information as necessary. The choice of bank is also important; consider reliability and convenience when making your decision.

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Summary

Even after completing the establishment of your GK, several additional procedures remain, including notifications to tax offices and local authorities, enrollment in social and labor insurance, and setting up a corporate bank account. Completing these steps promptly will ensure your business can start smoothly.

Our office can also assist with these procedures in collaboration with tax accountants and labor and social security attorneys.

In Part 5, we will discuss key points on visa acquisition and establishing a GK as a foreign entrepreneur, along with helpful information for launching your business in Japan.