Company Incorporation in Tokyo

Company Types in Japan

Kabushiki Kaisha (KK) - Stock Company

The most common and recognized business structure in Japan. Suitable for companies planning to raise investment or build long-term credibility.

• Minimum capital: ¥1 (¥30M+ recommended for Business Manager visa purposes)
• Limited liability for shareholders
• Can issue shares and raise capital
• Higher credibility with banks and partners

Godo Kaisha (GK) - Limited Liability Company

A simpler and more flexible structure similar to an LLC. Good for smaller operations and startups.

• Minimum capital: ¥1
• Simpler setup process
• Lower registration fees
• Flexible management structure

Branch Office

An extension of your existing foreign company. The foreign parent company remains fully liable.

• No separate capital requirement
• Parent company liable for branch activities
• Must appoint a representative in Japan

Incorporation Requirements

• Company name (must include KK or GK designation)
• Registered office address in Japan
• Business purpose/objectives
• Capital amount
• Director/representative information
• Fiscal year end date

Our Incorporation Services

• Entity type consultation and recommendation
• Articles of incorporation drafting
• Notarization of documents
• Company seal (hanko) creation
• Legal Affairs Bureau registration
• Tax office notifications
• Social insurance registration

Timeline

Company incorporation typically takes 2-4 weeks from document preparation to registration completion.

Costs

See our fees page for detailed incorporation costs.

Common Mistakes to Avoid When Incorporating in Japan

Setting up a company in Japan involves navigating unfamiliar regulations and procedures. Here are five common mistakes that foreign entrepreneurs should watch out for.

1. Choosing the Wrong Company Type (KK vs GK)

Many founders default to a Kabushiki Kaisha (KK) because it sounds more prestigious, but a Godo Kaisha (GK) may be a better fit depending on the business. A GK has lower registration fees, a simpler structure, and fewer compliance requirements. On the other hand, choosing a GK when you need to raise outside investment or build credibility with larger Japanese clients can hold your business back. Take time to evaluate which structure aligns with your long-term goals before committing. Our team can help you assess the best option during a free consultation.

2. Setting Capital Too Low for Business Manager Visa Purposes

While the legal minimum capital for both a KK and a GK is just 1 yen, this amount is almost never sufficient in practice. If you plan to apply for a Business Manager visa (Keiei Kanri visa), immigration authorities require a total investment of at least 30 million yen (approximately USD 200,000), covering capital, office costs, equipment, salaries, and operating expenses. Setting your capital too low can result in a visa refusal, forcing you to restructure your company and reapply -- a costly and time-consuming process.

3. Not Understanding Post-Incorporation Filing Requirements

Incorporation is only the beginning. Within a short window after registration, your company must file notifications with the tax office (zeimusho), the prefectural and municipal tax authorities, and -- if you plan to hire employees -- the Labor Standards Office and the Japan Pension Service. Missing these deadlines can result in penalties and complications with future filings. Many first-time founders are unaware of these obligations and fall behind before the business even begins operating.

4. Using a Personal Address Instead of a Proper Business Address

Your registered office address (honten shozaichi) is publicly listed in the company registry. Using a residential apartment may create problems with your lease agreement, appear unprofessional to potential clients, and cause difficulties when opening a corporate bank account. More importantly, if you are applying for a Business Manager visa, immigration typically requires evidence of a dedicated business premises -- not a home address. Consider securing a proper office or coworking space before you begin the incorporation process.

5. Not Planning for Corporate Bank Account Opening

Opening a corporate bank account in Japan is notoriously difficult for newly incorporated companies, especially those founded by foreign nationals. Major banks such as MUFG, SMBC, and Mizuho often require a track record of business activity, a physical office, and an in-person interview in Japanese. Failing to plan for this step can leave you unable to receive payments or pay expenses through the company. It helps to prepare a clear business plan, gather supporting documents in advance, and consider starting with a more accessible bank or fintech service while you build your company's history.

Frequently Asked Questions About Company Incorporation in Japan

What is the difference between a KK and a GK in Japan?

A Kabushiki Kaisha (KK, literally "stock company") is the Japanese equivalent of a corporation. It offers higher credibility, the ability to issue shares, and is better suited for companies seeking outside investment. A Godo Kaisha (GK, "limited liability company") is closer to an LLC, with lower setup costs, simpler governance, and more flexibility in profit distribution among members. KKs are generally preferred for businesses that deal with large Japanese enterprises or plan to scale significantly, while GKs are popular with smaller ventures and solo founders. Read more about choosing between them in our business support guide.

How long does company incorporation take in Japan?

From start to finish, company incorporation in Japan typically takes 2 to 4 weeks. This includes drafting and notarizing the articles of incorporation (teikan), preparing the company seal (hanko), depositing capital, and filing the registration at the Legal Affairs Bureau (Homukyoku). The exact timeline depends on how quickly documents are prepared, whether the founders are based in Japan, and the type of entity being registered. A GK is generally faster to set up than a KK because it does not require notarization of the articles of incorporation.

Can a foreigner incorporate a company in Japan without living there?

Yes, it is possible for a non-resident foreigner to incorporate a company in Japan. However, there is an important requirement: at least one representative director (for a KK) or one representative member (for a GK) must have a registered address in Japan. If you are based overseas, you can appoint a Japan-based co-director or representative to satisfy this requirement. Our office frequently assists overseas clients with this process, including document preparation and coordination with notaries and the Legal Affairs Bureau. If you also need a visa to move to Japan, we can help with that as well.

How much capital do I need to start a company in Japan?

Legally, the minimum capital for both a KK and a GK is 1 yen. However, this amount is purely symbolic. If you are applying for a Business Manager visa, immigration authorities require a total investment of at least 30 million yen (approximately USD 200,000), covering capital, office costs, equipment, salaries, and operating expenses. Even without visa considerations, a higher capital amount demonstrates financial stability to banks, landlords, and business partners. The capital must be deposited into a bank account (either a personal account in Japan or a designated account) before registration, and proof of deposit is submitted as part of the incorporation documents.

Do I need a physical office to incorporate a company in Japan?

You are required to provide a registered office address (honten shozaichi) during incorporation, and this address becomes part of the public record at the Legal Affairs Bureau. While it is technically possible to use a virtual office address for the registration itself, a physical office is strongly recommended -- and often required -- for Business Manager visa applications and for opening a corporate bank account. Japanese banks and immigration officers both place significant importance on having a legitimate, dedicated business location.

What is a company seal (hanko) and do I need one?

A company seal, known as a houjin-in, is an official stamp that functions similarly to a corporate signature in Japan. During incorporation, you must register a representative seal (daihyouin) with the Legal Affairs Bureau. This seal is used to sign contracts, execute official documents, and authorize corporate actions. Most companies also create a bank seal (ginkouin) for financial transactions and a square company stamp (kakuin) for everyday paperwork such as invoices and receipts. While Japan has been gradually adopting digital signatures, hanko remain a practical necessity for most business and banking interactions.

What taxes does a Japanese company need to pay?

Japanese companies are subject to national corporate income tax, prefectural and municipal inhabitant taxes, enterprise tax, and consumption tax (shouhizei, similar to VAT, currently set at 10%). The effective combined corporate tax rate is approximately 30% for small and medium-sized enterprises. Companies that hire employees must also withhold income tax and social insurance contributions from salaries. Tax returns must be filed within two months of the end of the fiscal year. For detailed pricing on our incorporation and tax filing support, see our fees page.

Can I be the sole director and shareholder of a KK?

Yes. Since the Companies Act reform in 2006, a single individual can serve as the sole director (torishimariyaku) and sole shareholder (kabunushi) of a Kabushiki Kaisha. There is no longer a requirement for a board of directors or corporate auditor for standard small-scale KKs. However, if you do not reside in Japan, you will still need to appoint at least one representative director who has a Japanese address. A GK offers similar flexibility, allowing a single member to act as both owner and manager.

Related Services

Setting up a company in Japan often involves more than just incorporation. We offer a range of related services to help you get your business fully operational.

• Business Manager Visa (Keiei Kanri) -- If you are a foreign national planning to run your company in Japan, you will likely need a Business Manager visa. We handle the full application process.
• Business Licenses and Permits -- Many industries in Japan require specific licenses or permits before you can begin operations. We help identify and obtain the approvals your business needs.
• Business Support Services in Tokyo -- From registered agent services to ongoing compliance support, our team provides comprehensive assistance for businesses operating in Tokyo.
• Visa Services -- Whether you need work visas for employees, a Highly Skilled Professional visa, or other immigration support, we can assist with all visa categories.
• Service Fees -- View our transparent pricing for incorporation, visa applications, and other professional services.