On 1 April, 2017, a Bill to the Payment Services Act of Japan (PSA) and associated assembly directives came into effect, including a governing administration for virtual currency (VC) businesses and making Japan the leading developed country to do so.

Timeframe:

  • Company formation – within 8 weeks
  • License application – within 6 months

Minimum capital requirement: GBP 67500+ Registration tax

Overview:

Japanese legislators revised the Act on Settlement of Funds (Act No. 59 of 2009, as revised, the Amended Settlement Act) in May 2016 to manage businesses handling virtual currencies (VCs), which present exchange services between VCs and regular real currencies, such as Japanese yen or foreign money (VC Exchangers). Following the revision to the Act, the Financial Services Agency of Japan (JFSA) has issued a draft of appropriate statutes in conjunction with the Amended Settlement Act. The draft statutes, which are currently subjected to the public annotation process, set forth the specific circumstances that link to the certification and operation of VC Exchangers and protection of customers (the Draft VC Regulations).

Advantages of Japan Virtual Currency Exchange provider’s license:

  • Japan Company represents a good image to your Clients;
  • Excellent status worldwide;
  • One of the few rules implementing licensing for virtual currency exchanges;
  • Japan is influential international financial center;
  • 96 double taxation avoidance treaties;
  • Not blacklisted.
Notable features

General information

Company structure

  • Minimum one shareholder. A natural person or legal entity, no nationality limitations
  • Minimum one resident director. A spokesperson of the local office
  • A minimum one local compliance officer

Taxation

  • 05% Corporate income tax rate. Including Corporate Inhabitant Tax.
  • Tax rates on withholding: 20% on Interest, 15% on Dividends, 20% on Royalties
  • 8% Consumption tax (~VAT)

Accounting and audit  – An yearly audit of the organization’s financial statements are expected

Secretary – Needed

Registered office – Needed

Registered Agent – Not needed

Company name

  • The provider must not adopt a trade name or business name that is identical to the one used by any others
  • The name of the organization is to be followed with the words “Kabushiki-Kaisha” (in Japanese characters)
  • It is restrained for a Company name to incorporate any word which makes it likely that the Company may be mixed for a different form of Business
  • Restricted connections for company name: names of state and local administration organizations and companies
  • A company’s name shall not be opposed to good morals, as well as shall not be deceived with respect to the legal form, area of exercise or scope of activity of the project
  • The registrar may refuse any name which it deems undesirable or contrary to the public interest
Prcedure

In order to get a license, the following actions will be carried out:

  • Appeal for license of company name
  • Development and submission of the paper and inclusion documents to the Registry
  • Establishment of the company
  • Registering the report with Bank of Japan under the Foreign Exchange Act of Japan
  • Recording the information with tax authorities
  • Opening of a Bank Account
  • Recording with the FSA/Local Financial Bureau
Documents Required

In order to get the license, we will fill all the necessary application forms and also obtain apostilled corporate documents.

For that reason, kindly give us the following documents.

For the company officers:

  • A notarized copy of the valid passport of all Director or Shareholder
  • A notarized copy of proof of residential address (ie. utility bill of each Director)
  • verified Bank Reference (of each Director)
  • Two professional character references of each Director and Shareholder
  • Comprehensive CV dated and signed by the candidate of each Director and Shareholder
  • Notarized copies of Diplomas of higher education
  • Notarized criminal record

In case the shareholder is a corporation, it is expected to provide:

  • Certified true copy certification of registration
  • List of shareholders
  • Copy of the last yearly/financial return
  • Apostilled Certificate of Good Standing

For the company/business:

  • Detailed marketing plan, that will incorporate a sight of profit and loss for three financial years from the startup
  • Manuals: Internal control rules; Internal procedure rules; System of protective standards for service users; System of separated control of money, Virtual currency dropped by users; Information technology system contingency management
  • List and classification of virtual currencies offered
  • Contract information for execution of virtual currency exchange business

N.B.

  • If records are not in English language, then they must be brought by a notarized translation.
  • The service agent is obligated by law to meet face-to-face with the client when it is not feasible – a letter will be mailed to the address on the IDs via recorded mail.
  • Further papers may be requested by the FSA/Local Financial Bureau or local Bank at any point to verify specific information.