Summary of Doing Business 2014: Japan
Core Content
The Doing Business 2014 report provides an analysis of business regulations in Japan and compares them with other economies across 11 key areas. These areas include starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency, and employing workers. The report evaluates the ease of doing business using a standardized set of indicators, benchmarking performance against other economies.
Main Viewpoints
- Ease of Doing Business Index: Japan ranks 27th out of 189 economies, a slight drop of -4 from the previous year.
- Distance to Frontier (DTF): Japan's DTF score is 78.6, indicating it is close to the best practices but still has room for improvement.
- Comparative Performance: Japan's performance is compared with several economies, including Australia, Brazil, China, Korea, the Russian Federation, the United States, and the global best performers such as New Zealand and Singapore.
Key Information
Business Regulations Overview
| Indicator |
Japan DB2014 |
Japan DB2013 |
Australia DB2014 |
Brazil DB2014 |
China DB2014 |
Korea, Rep. DB2014 |
Russian Federation DB2014 |
United States DB2014 |
Best Performer DB2014 |
| Starting a Business (Rank) |
120 |
113 |
4 |
123 |
158 |
34 |
88 |
20 |
New Zealand (1) |
| Procedures (Number) |
8 |
8 |
3 |
13 |
13 |
5 |
7 |
6 |
New Zealand (1)* |
| Time (Days) |
22.0 |
22.0 |
2.5 |
107.5 |
33.0 |
5.5 |
15.0 |
5.0 |
New Zealand (0.5) |
| Cost (% of Income per Capita) |
7.5 |
7.5 |
0.7 |
4.6 |
2.0 |
14.6 |
1.3 |
1.5 |
Slovenia (0.0) |
| Paid-in Min. Capital (% of Income per Capita) |
0.0 |
0.0 |
0.0 |
0.0 |
78.2 |
0.0 |
1.2 |
0.0 |
112 Economies (0.0)* |
Getting Electricity
| Indicator |
Japan DB2014 |
Japan DB2013 |
Australia DB2014 |
Brazil DB2014 |
China DB2014 |
Korea, Rep. DB2014 |
Russian Federation DB2014 |
United States DB2014 |
Best Performer DB2014 |
| Rank |
26 |
26 |
34 |
14 |
119 |
2 |
117 |
13 |
Iceland (1) |
| Procedures (Number) |
3 |
3 |
5 |
4 |
5 |
4 |
5 |
4 |
10 Economies (3)* |
| Time (Days) |
105 |
105 |
75 |
58 |
145 |
18 |
162 |
60 |
Germany (17) |
| Cost (% of Income per Capita) |
0.0 |
0.0 |
8.7 |
34.4 |
499.2 |
17.7 |
293.8 |
15.6 |
Japan (0.0) |
Registering Property
| Indicator |
Japan DB2014 |
Japan DB2013 |
Australia DB2014 |
Brazil DB2014 |
China DB2014 |
Korea, Rep. DB2014 |
Russian Federation DB2014 |
United States DB2014 |
Best Performer DB2014 |
| Rank |
66 |
64 |
40 |
107 |
48 |
75 |
17 |
25 |
Georgia (1) |
| Procedures (Number) |
6 |
6 |
5 |
14 |
4 |
7 |
4 |
4 |
4 Economies (1)* |
| Time (Days) |
13.0 |
13.0 |
4.5 |
30.0 |
29.0 |
9.0 |
22.0 |
12.0 |
New Zealand (1.0)* |
| Cost (% of Property Value) |
5.8 |
5.8 |
5.0 |
2.6 |
3.6 |
5.1 |
0.1 |
3.4 |
5 Economies (0.0)* |
Getting Credit
| Indicator |
Japan DB2014 |
Japan DB2013 |
Australia DB2014 |
Brazil DB2014 |
China DB2014 |
Korea, Rep. DB2014 |
Russian Federation DB2014 |
United States DB2014 |
Best Performer DB2014 |
| Rank |
28 |
24 |
3 |
109 |
73 |
13 |
109 |
3 |
Malaysia (1)* |
| Strength of Legal Rights Index (0-10) |
7 |
7 |
10 |
3 |
5 |
8 |
4 |
9 |
10 Economies (10)* |
| Depth of Credit Information Index (0-6) |
6 |
6 |
5 |
5 |
5 |
6 |
5 |
6 |
31 Economies (6)* |
| Public Registry Coverage (% of Adults) |
0.0 |
0.0 |
0.0 |
50.4 |
30.2 |
100.0 |
0.0 |
0.0 |
Portugal (100.0)* |
| Private Bureau Coverage (% of Adults) |
100.0 |
100.0 |
100.0 |
63.4 |
0.0 |
100.0 |
59.2 |
100.0 |
22 Economies (100.0)* |
Protecting Investors
| Indicator |
Japan DB2014 |
Japan DB2013 |
Australia DB2014 |
Brazil DB2014 |
China DB2014 |
Korea, Rep. DB2014 |
Russian Federation DB2014 |
United States DB2014 |
Best Performer DB2014 |
| Rank |
16 |
16 |
68 |
80 |
98 |
52 |
115 |
6 |
New Zealand (1) |
| Extent of Disclosure |
7 |
7 |
8 |
5 |
10 |
7 |
6 |
7 |
10 Economies (10)* |
Trading Across Borders
| Indicator |
Japan DB2014 |
Japan DB2013 |
Australia DB2014 |
Brazil DB2014 |
China DB2014 |
Korea, Rep. DB2014 |
Russian Federation DB2014 |
United States DB2014 |
Best Performer DB2014 |
| Rank |
23 |
24 |
46 |
124 |
74 |
3 |
157 |
22 |
Singapore (1) |
| Documents to Export (Number) |
3 |
3 |
5 |
6 |
8 |
3 |
9 |
3 |
Ireland (2)* |
| Time to Export (Days) |
11 |
11 |
9 |
13 |
21 |
8 |
22 |
6 |
5 Economies (6)* |
| Cost to Export (US$ per Container) |
890 |
880 |
1,150 |
2,215 |
620 |
670 |
2,615 |
1,090 |
Malaysia (450) |
| Documents to Import (Number) |
5 |
5 |
7 |
8 |
5 |
3 |
10 |
5 |
Ireland (2)* |
| Time to Import (Days) |
11 |
11 |
8 |
17 |
24 |
7 |
21 |
5 |
Singapore (4) |
| Cost to Import (US$ per Container) |
970 |
970 |
1,170 |
2,275 |
615 |
695 |
2,810 |
1,315 |
Singapore (440) |
Enforcing Contracts
| Indicator |
Japan DB2014 |
Japan DB2013 |
Australia DB2014 |
Brazil DB2014 |
China DB2014 |
Korea, Rep. DB2014 |
Russian Federation DB2014 |
United States DB2014 |
Best Performer DB2014 |
| Rank |
36 |
36 |
14 |
121 |
19 |
2 |
10 |
11 |
Luxembourg (1) |
| Time (Days) |
360 |
360 |
395 |
731 |
406 |
230 |
270 |
370 |
Singapore (150) |
| Cost (% of Claim) |
32.2 |
32.2 |
21.8 |
16.5 |
11.1 |
10.3 |
13.4 |
18.4 |
Bhutan (0.1) |
| Procedures (Number) |
31 |
31 |
28 |
44 |
37 |
33 |
36 |
32 |
Singapore (21)* |
Resolving Insolvency
| Indicator |
Japan DB2014 |
Japan DB2013 |
Australia DB2014 |
Brazil DB2014 |
China DB2014 |
Korea, Rep. DB2014 |
Russian Federation DB2014 |
United States DB2014 |
Best Performer DB2014 |
| Rank |
1 |
1 |
18 |
135 |
78 |
15 |
55 |
17 |
Japan (1) |
| Time (Years) |
0.6 |
0.6 |
1.0 |
4.0 |
1.7 |
1.5 |
2.0 |
1.5 |
Ireland (0.4) |
| Cost (% of Estate) |
4 |
4 |
8 |
12 |
22 |
4 |
9 |
7 |
Norway (1) |
| Outcome (0 as piecemeal sale and 1 as going concern) |
1 |
1 |
1 |
1 |
0 |
1 |
0 |
1 |
- |
| Recovery Rate (cents on the dollar) |
92.8 |
92.8 |
81.3 |
19.5 |
36.0 |
82.3 |
42.8 |
81.5 |
Japan (92.8) |
Business Registration Process
The standardized company in Japan is a Godo Kaisha, located in Tokyo, with a paid-in minimum capital requirement of JPY 1, which is 0.0% of income per capita. The start-up capital is 10 times GNI per capita, and the turnover is at least 100 times GNI per capita.
Procedures to Start a Business
| No. |
Procedure |
Time (Days) |
Cost (JPY) |
| 1 |
Make a company seal |
3 |
10,000 - 20,000 |
| 2 |
Obtain certificate of seal registration from the Ward office |
1 |
400 |
Methodology
- The report uses a simple average of percentile rankings across 10 topics to calculate the ease of doing business index.
- The distance to frontier measures how far an economy is from the best performance on each indicator.
- The starting a business indicators measure procedures, time, cost, and paid-in minimum capital.
- The data in the report are based on standard assumptions about the business and its procedures, including no prior contact with officials, no bribes, and a company with 10-50 employees.
Reforms in Japan
- No significant reforms were recorded by Doing Business in Japan from DB2009 to DB2014.
Conclusion
The report provides a comprehensive overview of Japan's regulatory environment for small and medium-sized enterprises (SMEs) and highlights areas where Japan is performing well and where it can improve. It emphasizes the importance of streamlining procedures, reducing costs, and increasing transparency to enhance the ease of doing business.