About ARC & PARTNERS

ARC & PARTNERS is a professional team based in Tokyo’s Ginza district, providing one-stop support for a wide range of business and personal needs in Japan—including tax and accounting, entity formation, visa applications, employment, and social insurance procedures. Unlike in the United States, many professional services in Japan are legally restricted to licensed practitioners. To meet these requirements, our team collaborates across disciplines, drawing on the expertise of certified professionals, including:

• Japanese Certified Public Tax Accountants (domestic tax & accounting)
• U.S. Enrolled Agents (U.S. tax matters)
• Social-Insurance & Labor Consultants (social insurance and employment-related issues)
• Judicial Scriveners (company incorporation, inheritance, real estate registration)
• Administrative Scriveners (visa and immigration procedures)

Our team has extensive experience assisting inbound businesses and individuals with cross-border assets and tax issues spanning Japan and the United States

Representative Engagements

• Establishing a corporation in Japan and hiring U.S. nationals
• Registering a Japanese branch office and employing local staff
• Handling inheritance and income-tax filings in both Japan and the U.S. for clients with assets in both countries
• Assisting with the acquisition and management of Japanese real estate as a rental business, either through a corporate structure or personal

Engagements We Cannot Accept

• Cases where no local contact or representative remains in Japan after the entity is established
• Disbursement services, such as making payments to vendors on the client’s behalf.
  (Note: We do offer payroll calculation, sales tracking, and bookkeeping services.)

U.S.–Japan Estate-Tax Consulting

Japan is one of the few countries that still imposes a national inheritance tax. According to the National Tax Agency, approximately one in ten estates in Japan are subject to this tax.
If a U.S. resident passes away while holding assets in Japan, those assets fall within Japan’s inheritance tax jurisdiction. Moreover, even when both the parent and child reside in the United States, Japan may still tax U.S.-situs assets—for example, if the child resided in Japan at any time within the 10 years prior to the decedent’s death.
Repeated legislative amendments have steadily narrowed traditional tax-planning options. Ongoing changes to Japan’s tax code make specialized cross-border advice essential.

Our Services

♦ Inheritance Tax Returns for U.S. Residents
Japan allows only 10 months from the date of death to file an inheritance tax return. A smooth and prompt information flow is critical—especially when heirs reside in the United States and additional fact-finding is required.

♦ Estate Tax Projections for U.S. Residents
If you are concerned about future estate-tax exposure, we can simulate today’s liability as though the decedent passed away now—giving you a clear picture of the potential tax burden.

♦ Pre-Estate Planning with Wills & Trusts
Japan has no probate court; however, disputes among heirs can delay the legally required “division agreement,” preventing the transfer of legal title. A properly drafted will helps avoid this risk and carries the same legal weight as a court judgment.

♦ Lifetime-Gift Strategies
Although Japan does not yet have a fully unified estate-and-gift-tax system like that of the United States, recent reforms are moving in that direction. When used strategically, lifetime gifts can still offer effective ways to reduce the eventual inheritance-tax burden.

Japan Market-Entry Consulting

When large corporations expand into Japan, they often rely on global accounting networks. But if you’re exploring the market and prefer a firm you can consult more casually, suitable options are limited. In the United States, legal and administrative services are divided by specialty; in Japan, professionals with different licenses often collaborate as a team. Our organization brings all of these experts together under one roof—so you can seek advice with confidence.

♦ Establishing a Japanese Entity
A judicial scrivener will handle the incorporation paperwork. You can choose between a Kabushiki-Kaisha (KK), similar to a stock corporation, or a Goudou-Kaisha (GK), often referred to as a Japanese-style LLC. For small businesses, a GK is typically faster and easier to set up.

♦ Hiring U.S. Nationals
An administrative scrivener will assist with the visa process for foreign employees. We offer English-speaking support and proceed only after a thorough preliminary consultation.

♦ Enrolling U.S. Employees in Japan’s Social Insurance
Once the visa is obtained, enrolling in Japan’s social insurance system is mandatory. A licensed social-insurance consultant will help complete these formalities. Under this world-class system, the government covers 70% of medical expenses when employees receive treatment.

♦ Corporate Tax Filings and Annual Accounts
A licensed tax accountant will support your ongoing compliance. In Japan, the roles of tax accountants and certified public accountants (CPAs) are distinct: CPAs handle audits, while tax accountants manage bookkeeping, corporate tax filings, and individual returns for small and mid-sized businesses. We can also provide monthly management reports in the standard format.