Nagamine & Mishima Accounting Office

Accounting practice since 1989

  • English
  • 日本語 (Japanese)
  • About
    • Message from the Managing Partner
    • Leadership
    • Advantage
  • Services
    • Startup Support
    • Expansion Support
    • Crisis Support
    • Cloud Support
  • Resources
    • Seminars
    • Newsletters
    • Monthly Checklists
    • Japanese Business Guide
  • Blog
  • Clients
  • Contact

I’m thinking of incorporating a company, but won’t be doing any business through it for a year or so. What are the minimum taxes and other fees that I have to pay to keep such a semi-dormant firm going?

July 9, 2012

In principle, the minimum tax a dormant company will owe is the per capita levy which is taxed according to the scale of the amount of paid in capital (shihonkin) and the number of employees the company is hiring. For example, if the amount of the paid in capital of a company which is established in the Tokyo Special Wards is not more than JPY 10,000,000 and the number of employees it is hiring is not more than 50, the amount of the per capita levy is JPY 70,000 per annum. The same rule is applied to a dormant company, therefore the minimum tax a dormant company will owe is JPY 70,000 in the above example.  Please note that the amount of the per capita levy will vary according to the district a company is established.

In principle, a dormant company will not incur any other cost; however, please note that a dormant company also has the duty to file a tax return every year regardless of its activities or lack thereof. So if you decide to have a tax accountant prepare tax returns, the company will of course incur costs related to the preparation of this tax return.

Blog Categories

  • Blog
  • Facts about Tax
  • Newsletter

Need support for your business in Japan?


With over 25 years experience, our team is here to help. Fill out our simple contact form and we will be in touch very shortly.

People are Talking

  • “Our Group operates worldwide in the fashion and luxury goods sector and is active in the design, production and distribution of a wide range of products that includes prêt-a-porter, footwear and leather goods.

    We started our collaboration with Nagamine & Mishima Accounting Office since we decided to establish our subsidiary Aeffe Japan in November 2008. N&M supported us during the start up of this company in particular with the accounting, payroll, cash management and tax services and gave their total collaboration when Aeffe Japan built-up Its own financial department. We found a very high quality support and punctual answers to different one-shot questions that also helped us to understand, in an easy way, a really different way to operate.

    After the start up phase, we decided to confirm to N&M the tax and payroll services for Aeffe Japan and for Moschino Japan, our other Japanese subsidiary, and the daily relationship with them passed from the Italian HQ to the Japan subsidiaries in a very simple way.

    We are very satisfied to have chosen N&M.”

    Andrea Pagliarani, Group Financial Controller

    Aeffe Japan KK