The Japanese government assesses a number of taxes and fees during the course of the establishment of a new corporation in Japan. Some of these fees include a stamp for the articles of incorporation (approx. 30,000 JPY) and a registration license tax (150,000 JPY or 0.7% of the capital investment, whichever is higher).
In order to ensure predictability in the management of their business and staff, many employers will draft employment contracts that specify that employees must give notice before quitting their job. Typically the required notice will be several weeks to several months. However, even if an employee fails to give notice, employers cannot force pre-determined penalties on employees who suddenly quit.
In order for a foreign national to live and work in Japan, it is necessary to have a proper visa. This requirement can make it difficult for foreign investors to start a business in Japan. However, to solve this problem and encourage foreign investment, Japan has established the “Investor/Business Manager” visa.
Employment contracts in Japan generally define the relationship between the employee, the job and the company. In Japan, an employment contract must clearly state the period of the labor contract, the workplace, job duties, the existence of overtime, the start and end time as well as days off, the wage and rules regarding dismissal. It is the duty of the employee to check the contract before signing to ensure that he or she agrees with all the terms. Therefore, it is important to have the contract translated if it is in a language that the employee cannot read.