Successfully navigating the Japanese business landscape requires a deep understanding of local laws, accounting, and tax regulations. This is where specialized professionals, known as “Shigyo”, come into play.

Shigyo are licensed experts who hold national qualifications in their respective fields. In Japan, six key Shigyo professions play a crucial role in supporting businesses:

• Certified Public Accountant (CPA)
• Tax Accountant
• Social Insurance and Labor Consultant
• Lawyer
• Administrative Scrivener
• Judicial Scrivener

This guide will delve into the roles and distinctions of these professionals, equipping you with the knowledge to leverage their expertise for your business success in Japan.
 

Certified Public Accountants (CPAs)

CPAs, commonly referred to as “Kaikeishi” in Japan, primarily focus on auditing companies’ financial statements. Their role is to independently verify the accuracy and fairness of these statements, enhancing trust for investors and financial institutions. CPAs may also offer financial advisory and consulting services, contributing to the development of corporate strategies and strengthening internal controls.

Importantly, auditing is an exclusive service provided by CPAs in Japan. No other profession is legally permitted to conduct audits.

While CPAs are sometimes confused with tax accountants, their main difference lies in their scope of work. CPAs concentrate on auditing, while tax accountants specialize in tax filings and consultations.
 

Tax Accountants

Tax accountants, known as “Zeirishi”, handle tax filings and provide tax consultations for both corporations and individuals. Japan’s tax system is intricate and subject to frequent revisions, making the support of tax accountants with specialized knowledge indispensable. They also offer advice on tax-saving measures and tax audit responses, minimizing clients’ tax risks.

Like CPAs, tax accountants have exclusive rights to certain services, including tax representation, tax document preparation, and tax consultations.

Unlike CPAs, tax accountants focus solely on tax-related matters. While CPAs (Kaikeishi) mainly conduct financial statement audits, tax accountants (Zeirishi) specialize in tax filings and consultations.
 

Social Insurance and Labor Consultants

Social insurance and labor consultants, often called “Sharoshi”, provide representation and consultation on procedures related to labor standards and social insurance laws. Their services include preparing employment contracts, drafting work rules, handling labor and social insurance procedures, and offering consultation on human resources and labor management. They help alleviate the burden on corporate HR departments and prevent labor issues.

Social insurance and labor consultants have exclusive rights to prepare and submit application forms and ledgers based on labor and social insurance laws.

Their expertise is specific to human resources and labor matters within companies. While lawyers handle legal matters in general, social insurance and labor consultants (Sharoshi) specialize in labor law and social insurance.
 

Lawyers

Lawyers, known as “Bengoshi”, handle a wide range of legal matters. Their primary services include corporate legal affairs, litigation representation, contract drafting and review, and legal consultations. In corporate legal affairs, they assist with contract negotiations, dispute prevention, and litigation risk analysis.

Unlike other Shigyo professions that specialize in specific areas, lawyers deal with legal matters across the board. For example, administrative scriveners (Gyoseishoshi) specialize in document preparation, while judicial scriveners (Shihoshoshi) focus on real estate and commercial registration.
 

Administrative Scriveners

Administrative scriveners, or “Gyoseishoshi”, prepare and submit documents related to administrative procedures. These documents include applications for permits and licenses, contracts, and articles of incorporation. Administrative scriveners support businesses in obtaining various permits and licenses necessary for starting and operating a business in Japan.

They specialize in document preparation and submission but do not have the authority to represent clients in legal proceedings. Unlike lawyers and judicial scriveners, they cannot act as legal representatives in court.
 

Judicial Scriveners

Judicial scriveners, called “Shihoshoshi” “Solicitor”, handle procedures for real estate and commercial registration, as well as litigation representation in summary courts. They support the legal stability of businesses by assisting with registration procedures for real estate transactions and company formations. Additionally, they provide support for inheritance procedures and the preparation of wills.

Only judicial scriveners can act as agents for registration procedures when establishing a company in Japan.

They primarily specialize in registration procedures, and, unlike lawyers, their litigation representation is limited to summary courts. While lawyers handle a wide range of legal matters, judicial scriveners focus on registration procedures.
 

International Comparison of Shigyo Professions

Let’s explore how each Shigyo profession compares to similar roles in other countries:
 

Certified Public Accountant (CPA)

Internationally, accountants are often referred to as CPAs and engage in financial statement audits, tax consultations, and management consulting. In the US and Europe, it’s common for accountants to have a broader scope of work.

Tax Accountant

In the US, tax accountants are known as Tax Experts or Enrolled Agents. They specialize in tax-related tasks, including tax filings and consultations.

Social Insurance and Labor Consultant

In the US, similar professionals are called Human Resources Consultants or Labor Law Specialists, providing consulting services on labor laws and social insurance.

Lawyer

Lawyers exist worldwide and handle a wide range of legal matters. In the US, they are referred to as Lawyers or Attorneys and engage in corporate legal affairs and litigation representation.

Administrative Scrivener

While not present in all countries, administrative scriveners are sometimes known as Administrative Scriveners internationally. They specialize in administrative procedures and document preparation.

Judicial Scrivener

In the US, judicial scriveners are known as Judicial Scriveners and handle real estate and commercial registration procedures.
 

Utilizing Shigyo Professionals for Foreign Companies Entering Japan

When expanding into Japan, it’s crucial for foreign companies to effectively utilize the expertise of Shigyo professionals.

Here are some potential ways foreign companies can leverage their services:
 

CPA

Receive guidance on accounting practices in accordance with Japanese accounting standards or the accounting standards of the parent company’s home country.

Tax Accountant

Delegate tax processing and tax filings in compliance with Japanese tax laws.

Social Insurance and Labor Consultant

Establish a human resources and labor management system and ensure proper procedures are followed based on Japanese labor standards and social insurance laws.

Lawyer

Obtain support on corporate legal matters, including contract drafting and legal risk analysis.

Administrative Scrivener

Collaborate on obtaining various permits and licenses necessary for starting and operating a business.

Judicial Scrivener

Entrust registration procedures for company establishment.
 

Important Considerations When Engaging Shigyo Professionals

When seeking the services of Shigyo professionals, keep the following points in mind:
 

Confirm Expertise

Verify the professional’s area of expertise to select the right specialist for your specific needs.

Communication

As Japanese is the primary language for business, choose professionals who offer English support or arrange for a reliable interpreter.

Cost Confirmation

Obtain a cost estimate in advance and make an informed decision based on cost-effectiveness.
 

Conclusion

To succeed in the Japanese business landscape, the support of Shigyo professionals with expertise in their respective fields is indispensable. Certified Public Accountants, Tax Accountants, Social Insurance and Labor Consultants, Lawyers, Administrative Scriveners, and Judicial Scriveners each play a distinct role in supporting businesses in areas such as legal affairs, taxation, human resources, labor, and registration procedures.

By partnering with these experts, businesses can confidently navigate the Japanese legal landscape and secure a strong foundation for their operations. For foreign companies entering the market, these professionals are invaluable allies, bridging the gap between legal systems and facilitating smooth business transactions.
 

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