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flag Japan Japan: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company

Kabushiki Kaisha (KK), Public limited company.
Number of partners: At list 400 to keep listing on the Tokyo Stock Exchange
Capital (max/min): Minimum JPY 1
Shareholders and liability: Limited to the amount of capital contributed
Yugen Kaisha , Limited liability company
Number of partners: At least one
Capital (max/min): Minimum JPY 1
Shareholders and liability: Limited to the amount of capital contributed
Goshi Kaisha, Limited partnership
Number of partners: At least two. 2 types of partners: active partners and sleeping partners.
Capital (max/min): No minimum capital
Shareholders and liability: Unlimited for the active partners
Limited to the amount of capital contributed for the sleeping partners .
Gomei Kaisha, General partnership.
Number of partners: At least two
Capital (max/min): No minimum capital
Shareholders and liability: Unlimited
The Competent Organization
The administrative formalities must be carried out at the bureau of legal affairs of the Ministry of Justice.
Search a Company or a Financial Report
Business News on Japan
 
Setting Up a Company Japan OECD
Procedures (number) 8.0 5.0
Time (days) 23.0 12.0

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Japan.
Trade Register

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The Active Population in Figures

201120122013
Labor force 65,910,00065,020,00065,620,000

Source: CIA - The world factbook

 
200920102011
Total activity rate -59.50%60.10%
Men activity rate 71.80%72.00%71.70%
Women activity rate 47.90%49.50%49.40%

Source: UN - United Nations

 
Employed Persons, by Occupation (% of Total Labor Force) 2008
Manufacturing 18.4%
Real Estate, Renting and Business Activities 12.1%
Health and Social Work 9.4%
Construction 8.4%
Transport and Storage 6.1%
Hotels and Restaurants 5.2%
Education 4.5%
Agriculture, Hunting and Forestry 3.8%
Electricity, Gas and Water Supply 0.5%

Source: International Labor Organization (ILO)

 
For Further Statistics
The statistics of the Japan Institute for Labor Policy and Training
The statistics of the National Statistics Office

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Working Conditions

Legal Weekly Duration
8 hours per day and 40 hours per week
But employees frequently work 50 or 60 hours a week. Compared with the United States, the United Kingdom, France and Germany, Japanese employees work the most (in hours worked in industry).
It is also the country with the least annual vacation (weekly rest day and paid holidays included).
Retirement Age
Age 65 with a minimum of 25 years of contributions. An early pension is payable between ages 60 and 64
Working Contracts
In Japan, the contract determines if the employee is part of the regular or non-regular staff. Permanent employees form the regular staff. Among the non-regular staff, there are different types of contract: part-time workers, temporary workers, dispatched workers, fixed-term contract workers, entrusted employees (shokutaku).
Permanent contracts represent 65.4% of job total. 23% of jobs are non-regular jobs under part-time contracts.
Because of the economic recession which set in during the 1990’s, recourse to part-time jobs has developed considerably.
Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labor

Minimum Wage
JPY 127,746 per month (source: ILO, 2011).
Average Wage
Gross average monthly wage of men: JPY 360,000 (source: ILO, 2010);
Gross average monthly wage of women: JPY 243,600 (source: ILO, 2010).
Social contributions
Social Security Contributions Paid By Employers: 10.89%
Social Security Contributions Paid By Employees: 11.27%

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Social Partners

Social Dialogue and Involvement of Social Partners
90% of unions are Company unions. Company unions (one per company) exist inside the Company to discuss working conditions.
Labor unions are organized cross-corporate organizations. The elements of claims made by the labor unions are then a basis for claims by the Company unions.
There are two types of labor unions: the Industrial Trade Unions and the National centers (mainly Rengo, the Japanese Trade Union Confederation).
Rengo and management organizations such as Nippon Keidanren (Japan Business Federation) have established a venue for regular discussions. For issues on which they share the same opinion, a joint policy proposal is duly submitted to the central government, especially at the Governmental Councils created for this. Every year between March and April, the unions launch an offensive on wages; it is known as Shunto, the spring wage offensive.
Unions
Nippon Keidanren
Rengo
Unionization Rate
18.7% in 2005.
The rate is constantly dropping with a reduction registered especially in the private sector, in SMEs and micro-enterprises.
Labor Regulation Bodies
The Labor situation in Japan, Institute for Labor Policy and Training
Ministry of Health, Labor and Welfare
The representation of the International Labor Organization in Japan

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Last Updates: October 2014