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I haven't read the whole article, but it looks interesting. A couple of pointers/tips, though: The way expenses and depreciation are handled between godo kais
by mikekchar 10y ago
I haven't read the whole article, but it looks interesting. A couple of pointers/tips, though: The way expenses and depreciation are handled between godo kaisha and kabushiki gaisha are different. Make sure you understand those differences before you choose your path. There are advantages and disadvantages. The absolute first thing to do before you even see a lawyer is to find a good tax accountant.
If you are American (or if you are a citizen of a country with similar tax laws), it is very important to talk to someone who understands the intricacies of how the IRS works. I'm Canadian, so I don't know the details, but ownership of a foreign company can incur significant responsibilities with the IRS. The easiest way around this if you have a Japanese spouse is to have your spouse own the company. Again, see a tax accountant.
Finally, if you have a Japanese spouse who is dependent on you for income, then it is incredibly useful to have them be the CEO and president of the company. Income splitting in Japan is not legal. If you hire your spouse, they have to work for the company exclusively and get paid an amount representative of their position. It turns out, though, that the president of the company has no defined salary range and no defined duties. This is exceptionally useful.
In my company, my wife is both CEO and president. She has to work exclusively for the company, but I didn't really imagine that she would be very busy. As it turned out, though, even though I am fairly good at Japanese, having my wife handle all the business affairs has been incredibly useful. She can do everything twice as fast as me. Also, people we need to talk to are much more comfortable knowing that there is a Japanese person there would can navigate any language/cultural issues that might crop up. Dealing with the bank, government officials, etc, etc is just hugely easier and more efficient.
- android521 10y agoThe downside is that if your relationship goes sour, your wife owns your company.
- mikekchar 10y agoNo. She's an employee (just like me). The share holders own the company. Edit: Sorry. I think I misinterpreted what you were referring to. Yes, in the case that your spouse owns the company, they will own the company if you split. However, Japanese family law is pretty liberal when it comes to splitting assets anyway (Not entirely sure how it works for foreigners because they will get ousted from the family registry and family law will not apply to them). Basically, splitting up in Japan is tricky no matter what you do, so it is reasonable to exercise caution.