Key Takeaways
- Foreign nationals can form a company in Japan without residency. Since 2015, all directors can be non-residents.
- The two most common structures are Kabushiki Kaisha (KK) and Godo Kaisha (GK). KK offers more credibility. GK is faster and cheaper.
- Full setup takes 4 to 8 weeks and costs between ¥137,000 and ¥550,000.
- Banking is the most common bottleneck. Start early.
- The Business Manager Visa generally requires ¥30 million in capital, a dedicated commercial office, at least one qualifying full-time employee, and JLPT N2 / CEFR B2 Japanese proficiency demonstrated by either the applicant or the qualifying employee.
Company formation in Japan opens the door to one of the world’s largest economies. This guide covers everything you need to move forward, from choosing a structure to banking, taxes, and compliance.
If you are still evaluating whether Japan is the right market, start with our Japan Market Entry guide first.
What Does Company Formation in Japan Involve?
Setting up a company means registering a legal entity with Japanese authorities and building the foundations to operate here. The environment values long-term relationships and credibility, so getting the setup right matters from day one.
Who Can Form a Company in Japan?
Any foreign national can establish a company here. No citizenship or residency is required. Since 2015, all directors can be non-residents and the full process can be completed from overseas.
However, your company must have at least one director who is a resident of Japan, or holds the appropriate authority to open a company here. Founders planning to relocate and manage operations will need a Business Manager Visa. Read our guide on Starting a Company in Japan Without Residency for the full breakdown.
What Are the Key Steps Involved?
The process follows this sequence:
- Choose a legal structure
- Prepare incorporation documents
- Deposit initial capital
- Register with the Legal Affairs Bureau (法務局 / Houmu-kyoku)
- Complete post-registration notifications
Errors or missing information at any step can cause delays.
How Long Does Company Formation Take?
Registration itself takes one to two weeks after submission. The full process including banking and tax registrations typically takes 4 to 8 weeks. Professional support can shorten this significantly. For a more detailed breakdown on the incorporation timeline, See our Incorporation Timeline in Japan.
What Type of Company Should I Form in Japan?
Your structure affects cost, credibility, governance, and future growth. Choose before starting any paperwork.
| Entity Type | Liability | Setup Costs | Taxation | Governance |
| Godo Kaisha / 合同会社 (GK) | Limited liability | ¥137,000–¥410,000 | Taxed as a corporation | No shareholder meetings. Good for startups. |
| Kabushiki Kaisha / 株式会社 (KK) | Limited liability | ¥332,000–¥550,000 | Taxed as a corporation | Annual shareholder meetings required. Best for investment and enterprise sales. |
| Branch Office / 支店 (Shiten) | Full parent company liability | ~¥90,000 | Japan-sourced income only | Requires Japan-resident representative. Cannot convert to KK or GK. |
| Sole Proprietorship / 個人事業主 | Full personal liability | ¥55,000–¥110,000 | Fewer taxes, simpler filing | Best for freelancers. No liability protection. |
Not sure whether to form a GK or KK?
- Structure advice based on your visa status and business goals.
- Documents prepared in English, submitted correctly the first time.
- Trusted by 100+ companies incorporated across Japan.
5 Requirements for Company Formation in Japan
1. Company Name / 会社名 (Kaisha-mei)
Your name must be unique and cannot infringe on existing trademarks. It can be in Japanese, English, or both. Check availability before preparing any documents using the National Tax Agency Corporate Number Search to confirm no existing company is already registered under the same name.
2. Registered Business Address / 登記上の住所 (Touki-jou no Juusho)
All companies need a registered address in Japan. Virtual offices are acceptable for company registration. However, applicants pursuing a Business Manager Visa must maintain a dedicated commercial office space. The representative director’s personal residence generally cannot be used as the registered business address for Business Manager Visa purposes. Immigration authorities also closely scrutinize unusually low-cost office leases. See our guide on Virtual Offices in Japan for what to consider.
3. Articles of Incorporation / 定款 (Teikan)
This is the foundational legal document for any Japanese company. It defines the company name, purpose, capital, address, and ownership. KK requires notarization. GK does not.
4. Capital Requirements / 資本金 (Shihon-kin)
There is no legal minimum for registration itself. However, we recommend the following:
- ¥30 million minimum if you need a Business Manager Visa
- ¥1 million minimum if you do not need a Business Manager Visa
Immigration authorities increasingly scrutinize the source of funds used to meet Business Manager Visa capital requirements. Applicants should be prepared to provide bank statements, transfer records, and documentation showing how funds were accumulated or obtained through savings, loans, or investment sources.
Note that having too little capital can create problems when applying for a corporate bank account later.
5. Directors and Shareholders / 役員と株主 (Yakuin to Kabunushi)
Foreign nationals can serve in both roles. A minimum of one director is required. Your company must have at least one director who is a resident of Japan or holds the appropriate authority to open a company here. Non-resident directors have been permitted since 2015 but cannot operate the business from within Japan without the appropriate visa.
What Is the Step-by-Step Process for Company Formation in Japan?
Step 1 – Prepare Your Documents / 書類準備 (Shorui Junbi)
Missing translations are one of the most common causes of delays. Required documents typically include:
- Articles of Incorporation (定款 / Teikan)
- Passport copies for all directors and shareholders
- Signature certificates for non-resident founders
- Proof of capital deposit
- Japanese translations of any foreign language documents
Step 2 – Obtain a Company Seal / 会社印鑑 (Kaisha Inkan)
Japanese companies use official seals for formal transactions. There are three main types:
- Kaisha Jitsuin (会社実印) primary registered seal, must be registered with the Legal Affairs Bureau
- Kakuin (角印) square seal for routine internal documents
- Ginkoin (銀行印) banking seal used specifically for financial transactions
Get your seal prepared early to avoid delays when opening a bank account.
Step 3 – Deposit Initial Capital / 資本金の払込 (Shihon-kin no Haraikomi)
Capital must be deposited before registration is submitted. This is a deposit, not a transfer. There are two scenarios depending on your situation:
- If you are a non-resident: You will need to deposit funds into a Japanese bank account held by a Japanese resident or legal representative. This requires two bank accounts, both under relevant names, with the transfer documented clearly.
- If you are a resident: Deposit directly into your own Japanese bank account. Note that foreign banks are generally not familiar with this process and may not be able to assist. Japanese banks understand the requirement.
The bank record must clearly show the account holder name, amount, and date of deposit.
Step 4 – Register With the Legal Affairs Bureau / 法務局 (Houmu-kyoku)
Submit your completed application to the bureau covering your registered address. Processing takes one to two weeks. Upon approval you receive your Certificate of Registered Matters (登記事項証明書 / Touki Jikou Shomeisho) and corporate registration number, both required for banking and post-registration steps.
Step 5 – Complete Post-Registration Notifications / 設立後の届出 (Setsuritsu-go no Todoke-de)
| Notification | Office | Required | Deadline |
| Notification of Incorporation | Tax Office (税務署, Zeimusho) | Yes | Within 2 weeks of incorporation |
| Blue Return Filing | Tax Office (税務署, Zeimusho) | If applicable | Within 3 months of incorporation OR the day before the first fiscal year ends, whichever comes first |
| Notification of Incorporation | Local Tax Office (地方税務署, Chihō Zeimusho) | Yes | Varies by city |
| Notification of Incorporation | Municipal Office (市区町村役場, Shikuchōson Yakuba) | Yes | Varies by location |
| Health Insurance and Pension Enrollment | Pension Office (年金事務所, Nenkin Jimusho) | Yes | Within 5 days of hiring employees or paying a director salary |
| Labor Insurance | Labor Standards Office (労働基準監督署, Rōdō Kijun Kantokusho) | If hiring | Within 10 days of first hire |
| Employment Insurance | Hello Work (ハローワーク, Harō Wāku) | If hiring | Within 10 days of first hire |
For a full walkthrough, see Setting Up a Company in Japan.
How Much Does Company Formation in Japan Cost?
KK / 株式会社 Formation Costs
Registration tax is ¥150,000. Notarization adds approximately ¥52,000. A company seal costs ¥5,000 to ¥20,000. Total including professional services typically ranges from ¥332,000 to ¥550,000. Note that costs may increase depending on the amount of capital you plan to deposit.
GK / 合同会社 Formation Costs
Registration tax is ¥60,000. No notarization required. Total including professional services typically ranges from ¥137,000 to ¥410,000. Costs may also vary depending on your capital amount.
Additional Costs to Budget For
Beyond registration, plan for these ongoing expenses:
- Office rent from ¥60,000 per month for a small private office in Tokyo
- Accounting and payroll services from ¥30,000 to ¥100,000 per month
- Professional legal and compliance fees
- Translation costs
- Visa application costs if applicable
Do I Need a Business Manager Visa for Company Formation in Japan?
Forming a company does not grant the right to live or work in Japan. These are two separate processes. Founders planning to relocate and manage operations from inside Japan will need the appropriate visa.
Business Manager Visa support from people who know the process.
We have helped 60+ founders get their Business Manager Visa in Japan.
Minimum Age Requirement:
Applicants should generally be 21 years of age or older. While younger applicants may technically apply, Business Manager Visa applications from individuals aged 18–20 face significantly higher scrutiny and may be denied even if other requirements are satisfied.
- Holders of a spouse visa where their partner is Japanese
- Permanent residents of Japan
- Those with other work-eligible visa statuses
If you intend to live in Japan and actively manage your company, you will most likely need a Business Manager Visa. See our guide on How to Get a Business Manager Visa in Japan for the full process.
Current Requirements
- Minimum ¥30 million capital in a Japanese bank account
- At least one full-time Japanese national, permanent resident, or qualifying long-term resident employee
- The applicant OR the qualifying employee must demonstrate Japanese language proficiency at JLPT N2 / CEFR B2 level or above
- Physical dedicated office space
- The representative director’s personal residence cannot be used as the company’s registered business address for Business Manager Visa purposes
- Office leases below approximately ¥70,000 per month may face increased scrutiny during review
- Business plan reviewed by a professional expert
- Minimum three years of management experience
Existing visa holders have until October 2028 to comply with updated standards.
Startup Visa / スタートアップビザ as an Alternative
The Startup Visa is available in select cities including Tokyo and Fukuoka. It gives founders 6 to 12 months of temporary residency to prepare before applying for a Business Manager Visa. A business plan approved by the local municipal authority is required. For more details, see our guide on the Japanese Startup Visa in Japan .
How Do I Open a Corporate Bank Account in Japan?
Opening a corporate bank account is consistently one of the most challenging steps in the company formation process. Japanese banks apply strict Know Your Customer procedures and are cautious with new companies and non-resident directors. For a full guide, see our article on Opening a Corporate Bank Account in Japan.
Why Banking Is Difficult for Foreign Founders
Banks prefer companies that have a resident representative, a physical office, and an established track record. New companies with non-resident directors face additional scrutiny. The review process alone can take two to three weeks.
Corporate banking in Japan is hard. We help you get through it.
- Documents structured for Japanese bank review from day one.
- Setup approach that avoids the most common rejection points.
- Guidance available for both resident and non-resident founders.
Documents Typically Required
- Certificate of Registered Matters (登記事項証明書 / Touki Jikou Shomeisho)
- Articles of Incorporation (定款 / Teikan)
- Company seal and seal certificate
- Representative identification documents
- Documentation demonstrating business activities and purpose
Tips for Improving Approval Chances
A clear and detailed business plan significantly improves your chances. Some founders appoint a Japan-resident co-director specifically to facilitate the banking process. Smaller regional banks have sometimes been more accommodating than major traditional banks for newly established foreign-owned companies. For help structuring your setup from the start, see our Market Entry Specialist in Japan service.
What Tax and Compliance Obligations Should I Understand?
Corporate Tax / 法人税 (Houjin-zei)
The standard national corporate tax rate is 23.2%. SMEs with capital under ¥100 million qualify for 15% on income up to ¥8 million annually. From April 2026, a 4% Defense Special Corporate Tax surtax also applies. For a full breakdown, see our Ultimate Guide to Corporate Tax in Japan.
Consumption Tax / 消費税 (Shouhi-zei)
Japan’s consumption tax is generally 10%, with a reduced rate of 8% on certain goods. Companies with taxable sales under ¥10 million in the base period may qualify as tax exempt, though this means consumption tax refunds cannot be claimed.
Local Taxes / 地方税 (Chihou-zei)
Companies are also subject to Corporate Inhabitant Tax (法人住民税 / Houjin Juumin-zei) and Corporate Enterprise Tax (法人事業税 / Houjin Jigyo-zei). These vary by prefecture and municipality. The combined effective corporate tax rate including national and local taxes typically falls between 30% and 35%.
Ongoing Compliance Requirements
KK structures require annual shareholder meetings and published financial reporting. Both KK and GK require regular tax filings, payroll compliance, and social insurance if hiring. Keeping accurate books from day one reduces risk and simplifies annual filings. See our guides on Setting Up a Company in Japan and Japan Market Entry for more.
Frequently Asked Questions
Can I form a company in Japan without living there?
Yes. Since 2015, no director or representative needs to be a resident of Japan. The full process can be completed from overseas. However, your company must still have at least one director who is a resident of Japan or holds the appropriate authority. Actively managing operations from within Japan requires the appropriate visa status.
Can I change my company structure later?
Yes. Conversions such as GK to KK are possible but involve amending the Articles of Incorporation, re-registering with the Legal Affairs Bureau, and paying associated fees. Planning the right structure from the beginning avoids these steps.
Is Japanese language proficiency required for company formation?
No. Japanese proficiency is not required for registration itself. However, most official documents and bank communications are in Japanese. Working with bilingual professionals reduces friction significantly. The updated Business Manager Visa framework requires JLPT N2 / CEFR B2 proficiency to be demonstrated by either the applicant or a qualifying full-time employee.
What industries have restrictions on foreign ownership?
Japan encourages foreign investment but certain sectors have ownership caps:
- Telecommunications: capped at 33.3% for major operators
- Broadcasting: capped at 20%
- Other restricted sectors include defense, energy, aviation, agriculture, forestry, mining, and water supply
Most industries have no such restrictions. For financial support available to your business, see our Guide to Startup Subsidies in Japan.
