Company incorporation in Japan for foreign residents: first checks
Incorporating a KK or GK in Japan costs roughly 60,000-250,000 yen in registration fees alone. What residence status, capital, and address rules to check first.
Next step
Check the latest conditions before you decide
Fees, campaigns, language support, and cancellation rules can change. Confirm the official conditions before applying.
Compare sole proprietorship as a simpler alternativeQuick conclusion
Incorporating in Japan means choosing between a Kabushiki Kaisha (KK) - more traditional and credible, higher setup cost with notary fees - and a Godo Kaisha (GK) - lower cost, simpler structure, slightly less traditional prestige in some industries. Either way, incorporating itself does not grant permission to work in Japan: if you plan to run the company as your main activity, you generally need an appropriate residence status, most commonly the Business Manager visa, which has its own capital and office requirements separate from basic incorporation.
KK vs GK at a glance
| Kabushiki Kaisha (KK) | Godo Kaisha (GK) | |
|---|---|---|
| Typical registration cost | Roughly 200,000-250,000 yen (incl. notary fees) | Roughly 60,000-100,000 yen |
| Governance | Board structure, more formal | Simpler, flexible internal rules |
| Client/bank perception | Generally seen as more established | Increasingly accepted, but can carry less weight in some traditional industries |
| Common choice for | Businesses prioritizing credibility, fundraising, or larger operations | Smaller operations, cost-sensitive founders, some startups |
Incorporation does not equal permission to work
This is the most commonly missed point: you can legally register a company in Japan as a foreigner without holding any specific work visa, but actually working for the company as your main livelihood in Japan requires appropriate residence status. For most foreign founders running their own company day to day, this means the Business Manager visa, which has separate requirements around capital (commonly expected around 5 million yen or equivalent investment, though confirm current guidance) and a suitable physical office. Review Business Manager visa basics before finalizing your incorporation plan, since visa requirements can shape decisions about capital amount and office type made during incorporation itself.
The registered office question
Your company needs a registered address for incorporation. A virtual office can work for registration purposes with some providers, but if a Business Manager visa is part of your plan, immigration authorities generally expect a physical office appropriately sized for your stated business activities - a mismatch here can derail a visa application even after successful company registration. Decide your office approach before incorporating, not after.
Steps in the incorporation process
1. Decide company type (KK or GK) and draft articles of incorporation 2. For a KK, get the articles notarized (adds cost and time versus a GK) 3. Prepare capital deposit and registered address documentation 4. File registration at the Legal Affairs Bureau 5. Register for relevant taxes with the tax office 6. Open a business bank account once registration is complete 7. If applicable, apply for your Business Manager visa or status change
Is a sole proprietorship simpler for your situation?
If you do not need a corporate structure for credibility, liability separation, or investor relations, a sole proprietorship (kojin jigyo) is significantly simpler and cheaper to start, with different tax treatment - compare the two paths in starting a sole proprietorship in Japan before committing to incorporation.
Get help before filing
Incorporation documents, notarization (for a KK), and visa-related requirements interact in ways that are easy to get wrong without experience. A judicial scrivener (shiho shoshi) typically handles the registration filing itself, while a tax accountant familiar with foreign-owned businesses can advise on the bigger picture - see how to choose a tax accountant in Japan, and ask specific questions before paying for broader business setup consultation.
This is general information, not legal or immigration advice. Incorporation requirements, costs, and visa criteria can change - confirm current rules with the Legal Affairs Bureau, a judicial scrivener, or an immigration professional before proceeding.
Before you apply
- ✓Decide between a KK and a GK based on your credibility needs and budget
- ✓Confirm whether your residence status allows business ownership or requires a status change
- ✓Prepare your registered office address before starting the registration process
- ✓Budget for registration tax
- ✓notary fees (KK)
- ✓and ongoing accounting costs
- ✓Consult a judicial scrivener or tax accountant before filing if your situation is not simple
FAQ
What is the difference between a KK and a GK in Japan?
A Kabushiki Kaisha (KK, joint-stock company) is the traditional corporate form, generally seen as more credible to clients and banks, with higher registration costs including notary fees for the articles of incorporation. A Godo Kaisha (GK, similar to an LLC) has lower registration costs and simpler governance, but can carry slightly less prestige with some Japanese clients and banks, which matters more in some industries than others.
Do I need a specific visa to incorporate a company in Japan?
You can incorporate a company in Japan without a specific business visa, but actually working for and running the company as your main activity in Japan typically requires an appropriate residence status, commonly the Business Manager visa, along with meeting its capital and office requirements. Incorporating alone does not grant you permission to work in the country.
How much capital do I need to start a company in Japan?
Legally, capital of just 1 yen is technically permitted for a KK or GK, but if you plan to apply for a Business Manager visa to run the company, immigration guidance commonly expects capital of at least 5 million yen or equivalent investment, plus a suitable office. Confirm current requirements with an immigration professional before finalizing your capital amount.
Can I use a virtual office as my registered company address?
It is possible for registration purposes with some virtual office providers, but if you are also seeking a Business Manager visa, immigration authorities generally expect a physical, appropriately-sized office suitable for the stated business activities - a virtual-office-only setup can cause visa application problems even if company registration itself succeeds.
How long does incorporation take in Japan?
With complete documents, registration itself commonly takes about one to two weeks at the Legal Affairs Bureau, though preparing the required documents (articles of incorporation, notarization for a KK, address confirmation, and other filings) beforehand often takes longer, especially if translation or professional review is involved.
Finished reading?
Take the next step while it is fresh
You now know what to check. Compare the current conditions while they are fresh in your mind, and keep a record of what you confirm.
Compare sole proprietorship as a simpler alternativeReferences
- National Tax Agency - business registration guidance - National Tax Agency
- Legal Affairs Bureau - company registration - Ministry of Justice