Advantage of incorporation of company
Even Non resident and foreign national can incorporate a company in Japan.
In other website, you may be able to find how to incorporate a company in Japan.
But, other website do not explain the way to setting up a company in Japan by non resident of Japan.
Before you start to incorporate a company in Japan, you need to know the merit to make a company in Japan.
Company can use wider tax deduction than individual
If you are managing a business in Japan as private concern ( = without legal entity ) and earn certain amount of money, you should set up a company and acquire juridical personality.
Because when you have a legal entity in Japan, you can apply for some kind of tax deduction.
Assumed your customers purchase some items from you and pay money to your company.
In that case, you can reduce the amount of income tax by means of employment income deduction.
In this page, you can find details to calculate income tax in Japan.
Assumed that you operate your business and get profit of 100 yen
The amount of income tax is as below.
In the case of company and you receive salary of 100 yen from the company.
By incorporation of company, you can reduce your taxable income and reduce the amount of income tax.
Company can limit your liability
Other than taxation, there is merit of having a Company in Japan.
Demerit of having company
I want to let you know this legislation.
Bank account under the name of company
If non resident incorporate in Japan, she ( her company ) may be able to open bank account in Japan.
It is almost impossible to open bank for non resident of Japan.
But, once a person incorporates a company in Japan, her company can get legal address in Japan.
Kind of company
If non resident of Japan has already company in her home country, she can establish branch office （ Shiten = 支店） in Japan.
There are some kind of legal entity in Japan.
Joint-stock corporations and limited liability companies are similar. Because, liability in them is limited to the assets contributed by equity participants.
But compared with joint-stock corporations, limited liability companies have larger range of freedom of self-government by its articles of incorporation.
And, unlike joint-stock corporations, Limited Liability Company do not need to to have their financial statements approved annually by their members and do not have to publish its financial results ( Kessan kokoku ).