Canada    FinTech Guide    Chapter 10    Japan

10. Accounting
Japan  Japan

Online accounting services are getting more publicity and their utilization rate is growing year by year.

Legal Affairs

In the case of simply providing online accounting services, there would be no major legal issues; however, accounting services categorized as FinTech may include various other services such as management of accounts receivable/accounts payable and preparation of all sorts of reports, financial statements, etc. Therefore, it is necessary to examine the specific content of the relevant services.

For example, preparation of tax returns and documents related to social insurance are the exclusive domain of certified public tax accountants and licensed social insurance consultants, and any other persons who perform such operations will be subject to penalty (Certified Public Tax Accountant Act, Art. 59, para. 1, item (4) and Art. 52; Act on Public Consultants on Social and Labor Insurance, Art. 32-2, para. 1, item (6), Art. 27). Therefore, when providing such services as printing ledgers and forms, it is necessary to pay attention not to infringe on the relevant regulations.

In addition, in the case of developing other services or cooperating with other companies using the data acquired through the provision of the services above, it is necessary to comply with the Personal Information Protection Act and other relevant laws and regulations. Specifically, it is necessary to comply with such regulations, where if the acquired data contains personal information, the utilization purpose of personal information has to be specified and the information has to be utilized within the scope of such purpose (Personal Information Protection Act, Art. 15 and Art. 16), and in the case of providing personal data to a third party, the consent of the principal has to be obtained in advance, in principle (Id., Art. 23, para. 1).

Economic Conditions

Its market scale in 2015 was approximately JPY 21.9 billion and, according to a private survey, it will expand to approximately JPY 36.3 billion in 2020.

Contributing Authors

Ushijima & Partners

Hiroyasu Kageshima
Tokyo, Japan

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Chapter Index:

1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018