Tokyo is consistently the most expensive city in Japan and naturally the costs incurred in setting up a business in Japan are also highest in Tokyo. On the other hand, Osaka has a lower cost of living and the Japanese government estimates the expenses associated with establishing a business in Osaka are around 85% of what it would cost in Tokyo. These extra savings can be funneled back into the business while enjoying the many business connections and easy transportation to other commercial hubs that living in Osaka provides.
Certain procedures in Japan, such as applying for citizenship or some visas, require showing proof of full tax payment in Japan. This proof often is best presented in the form of a certificate of tax payment issued by the Japanese national government and local city/prefecture governments.
One of the requirements to establish a company in Japan is to prove that the requisite money for the initial investment is available. However, since this proof is required before the company is formed, the yet-to-be-established company will not have a bank account yet. Therefore, the initial investment must be deposited into the bank account of one of the founding members.
In general, an employee in Japan may not be fired if the dismissal lacks objectively reasonable grounds. Dismissals are also invalid if they occur within 30 days of an employee missing work for medical treatment, or for a woman employee leading up to or following childbirth. These rules prevent companies from arbitrarily firing employees or punishing them for taking necessary medical leave.