Executing Contracts in Japan

Abstract

Executing a contract in Japan commonly involves a step or steps that are foreign to those working in other jurisdictions. The first is affixing a personal or company seal to the contract in order to execute it. The second is payment of a stamp tax for certain contracts. A third, less-common step involves the use of a Japanese notary. Those who work in Japan inevitably see the first two and, when notarization is required, are often shocked by the cost of the third. Yet there is little explanation of the practices and requirements for each in Western scholarship. This short article is intended to fill that void.