Services · Company formation
How to start a business in Japan as a foreigner
A company can be opened with 1 yen of capital, a visa for its owner only with 30 million yen. We cover the KK (joint-stock company) and GK (LLC), remote registration, government fees, taxes of around 35% and a Japanese bank account.
Is it worth opening a company in Japan in 2026
Japanese law lets you open a company with capital of 1 yen and a director who lives abroad. But since 16 October 2025 the Immigration Services Agency of Japan requires an owner who wants to live in the country on Business Manager status (the residence status for business owners) to put in at least 30 million yen of capital - six times the previous 5 million. A Japanese company and a Japanese residence permit are now two separate stories.
Registration itself is predictable. The register is kept by the Legal Affairs Bureau (Homukyoku) of the Ministry of Justice. According to JETRO (Japan External Trade Organization, the government trade and investment agency), setting up a subsidiary of a foreign company, including document preparation, takes about 2-3 months.
The uncomfortable part is tax and banking. The combined statutory rate on profits for a smaller company in Tokyo is 35.43% (including the new defence tax from 2026), against 17% in Singapore. Japanese banks screen new companies strictly and may refuse without giving reasons.
It suits those selling to Japanese clients, those ready to relocate and invest at least 30 million yen, and foreign companies that need a subsidiary. It does not suit those seeking low taxes, a company with no real activity in Japan, or a quick residence permit on a small budget. For a country overview, see Japan: citizenship, residence, taxes and visas.
We will calculate online the cost of registering and running your company for the first year.
KK or GK: which company to open in Japan
The Japanese arms of Apple, Amazon and Google are registered not as joint-stock companies but as GKs - the simpler and cheaper form. For a small business the choice usually comes down to the same two options: KK or GK. Under the Companies Act the minimum capital for both is 1 yen.
| Form | What it is | Capital and management | Who it suits |
|---|---|---|---|
| KK - kabushiki kaisha (株式会社) | Joint-stock company. The classic form, seen by Japanese partners as more established | From 1 yen. At least one director, annual shareholders' meeting, published balance sheet, articles certified by a notary | Businesses with Japanese clients, staff and plans to raise investment |
| GK - godo kaisha (合同会社) | Limited liability company, the Japanese counterpart of a US LLC | From 1 yen. No mandatory meeting, no term of office, no published balance sheet, no notary | Small companies and subsidiaries of foreign groups |
| Branch - shiten (支店) | Office of a foreign company without a separate legal entity | No capital, the parent is liable for debts. At least one representative must live in Japan | A foreign company selling in its own name |
| Representative office - chuzaiin jimusho (駐在員事務所) | Office of a foreign company not entered in the register | Cannot sell: only market research, information gathering, purchasing and advertising | First market reconnaissance |
| General and limited partnership - gomei kaisha and goshi kaisha | Partners are liable for debts with all their assets | According to JETRO, rarely chosen | Almost nobody |
The main difference is cost and formalities. A GK is cheaper: the minimum registration tax is 60,000 yen against 150,000 yen for a KK, there is no notary, no published balance sheet and no re-election of management.
So why a KK. Only a KK can offer shares to the public, while a GK interest can be transferred only with the consent of all members. If you need investors, start with a KK; a GK can be converted later through a separate procedure.
For the Business Manager visa either form works: the 30 million yen counts as KK paid-in capital or total GK contributions.
How to register a company in Japan remotely: steps and timing
Since 16 March 2015 Japan's Ministry of Justice has registered companies whose representative directors all live abroad. A KK or GK can now be set up without visiting.
Who files. Only judicial scriveners (shiho shoshi, licensed registration specialists) and attorneys may file for others (JETRO). A founder abroad signs a power of attorney and, instead of a seal (inkan) certificate, provides a signature certificate certified by a notary or consulate.
Capital. Before registration the money goes to a founder's or director's account at a bank in Japan, an overseas branch of a Japanese bank or a Japanese branch of a foreign bank. If all founders and directors live abroad, an authorised third party may receive it.
Address and officers. You need a head office address in Japan, but no company secretary as in Hong Kong or Singapore. The law does not prohibit a registered address service for incorporation, while the Business Manager visa requires a real office.
| Step | What happens | Timing |
|---|---|---|
| 1. Company profile | Name, address, business purpose, capital, directors, financial year | Up to the founder |
| 2. Documents from abroad | Signature certificates; for a corporate founder, an extract and affidavit (sworn statement), certified and translated into Japanese | Depends on the notary and consulate in your country |
| 3. Articles of incorporation | KK: certification by a Japanese notary (koshonin) together with a beneficial owner statement. GK: no notary | Depends on the notary's schedule |
| 4. Capital | Transfer and a director's statement confirming receipt | Day of transfer |
| 5. Filing with the Legal Affairs Bureau | The filing date becomes the company's date of incorporation | 1 day |
| 6. Register extract | Certificate of registered matters and company seal certificate | According to JETRO, roughly 4 days to 2 weeks. Outside peak periods the fast track takes 3 business days, a fully online filing meeting the conditions 24 hours |
| 7. Notifications | Tax office within 2 months, Japan Pension Service (Nihon Nenkin Kiko) for social insurance within 5 days | Right after registration |
| 8. Company bank account | Review of the business, owners and source of funds | The bank decides, refusal is possible |
| 9. Report to the Bank of Japan | Foreign investment report under the Foreign Exchange and Foreign Trade Act (FEFTA), prior notification in some sectors | After incorporation |
JETRO estimates the whole process for a KK subsidiary of a foreign company at 2-3 months. 24-hour processing needs electronic signatures on every document, which is hard for a foreigner without Japanese documents.
How much it costs to start a business in Japan
The minimum government cost of a GK is 60,000 yen, of a KK about 167,000 yen with electronic articles (example calculation: 150,000 registration tax, 15,000 notary fee plus copies of the articles). The gap is almost threefold, and nearly all of it is the registration and licence tax (toroku menkyozei), which the National Tax Agency (NTA) calculates from capital.
| Item | KK | GK |
|---|---|---|
| Notarial certification of the articles | 15,000 yen if capital is below 1 million yen, there are no more than three individual founders who take all the shares, and there is no board of directors. Otherwise 30,000 yen (capital below 1 million), 40,000 yen (1 to 3 million), 50,000 yen (3 million or more) | Not required |
| Certified copies of the articles | 250 yen per page | Not required |
| Stamp duty on paper articles | 40,000 yen, electronic articles are exempt | 40,000 yen, electronic articles are exempt |
| Registration and licence tax | 0.7% of capital, minimum 150,000 yen | 0.7% of capital, minimum 60,000 yen |
| Re-registration of directors when their term ends | 10,000 yen for capital up to 100 million yen | Not required, the law sets no term of office |
Example calculation for the Business Manager visa. A company with 30 million yen of capital pays 210,000 yen of registration tax (0.7% of 30 million) whichever form it takes. For a KK, add 50,000 yen for the notary and the copies. The 30 million yen itself is not a cost but company money for the office, salaries and operations.
Not in the table: the cost of our support (quoted after reviewing the documents), translations and certifications in your country, office rent, making the company seal.
The cost people forget. Even a loss-making company pays the flat per capita portion of the local inhabitants' tax (kintowari) every year. It starts at 70,000 yen a year for a company with capital up to 10 million yen and no more than 50 employees in a city, and rises with capital.
Registration from $380, but the real work is the bank and the business manager visa
The law does not stop you from registering a company on your own. But mistakes cost more than the fees: paper articles with an avoidable stamp duty, a company form that does not suit clients and the visa, capital below the business manager visa threshold of 30 million yen, a Japanese bank refusal without explanation, a missed re-election of joint-stock company directors. Murblz support removes these risks: we choose the form, prepare electronic articles and notarial certification, register the company, set up tax registration, prepare a file for the bank and the documents for the business manager visa. We guarantee professional work and a transparent process, and in most cases a result on the first application.
Support depends on the company form and number of founders - a manager will calculate it in the chat.
Business Manager visa Japan: 30 million yen and other requirements
30 million yen of capital, one local full-time employee and upper-intermediate (B2) Japanese: since 16 October 2025 this is the minimum set for the Business Manager status of residence (keiei kanri - business management), Japan's residence permit for company owners and managers. Before the reform, 5 million yen or two employees were enough. Example calculation: at 150 yen to the dollar, 30 million yen is about 200,000 US dollars.
| Requirement | What the Immigration Services Agency requires |
|---|---|
| Capital | At least 30 million yen: paid-in capital of a KK or total contributions of GK members. For a sole proprietor, the total invested in the business: office, one year of staff salaries, equipment |
| Employee | At least one full-time: a Japanese national, a special permanent resident, or a foreigner with one of these statuses: permanent resident, spouse of a Japanese national, spouse of a permanent resident, long-term resident (teijusha). Foreigners on work visas do not count |
| Japanese language | B2 level for the applicant or the employee. Proof: JLPT (Japanese-Language Proficiency Test) N2 or higher (the second hardest of five levels), BJT Business Japanese test of 400 points or more, 20 years of residence in Japan, a degree from a Japanese university or completion of Japanese schooling through high school |
| Experience or education | At least 3 years of business management experience, or a master's, doctoral or professional degree in business management or in a field relevant to the business, including degrees earned abroad |
| Business plan | Reviewed by an expert: a certified SME management consultant (chusho kigyo shindanshi), a certified public accountant (konin kaikeishi) or a certified tax accountant (zeirishi) |
| Office | Premises suited to the scale of the business. Using your home as the office is not allowed as a rule |
Renewals are stricter. At renewal the agency checks payment of company taxes, social insurance and labour insurance. Long absences without good reason are grounds for refusal, as is a business that is in practice outsourced.
For current holders. Until 16 October 2028, renewals consider the state of the business and its prospects of meeting the new criteria. After that date full compliance is required. Permanent residence from Business Manager status is no longer granted without meeting the new criteria.
Alternatives: the Japan startup visa gives time to prepare a business, but those confirmed under it after the reform will switch to Business Manager under the new rules. If you work for clients abroad, the digital nomad visa may fit.
What taxes a company pays in Japan
Japan taxes a Japanese company on its worldwide profits. The national corporate tax (hojinzei) starts at 23.2%, but local taxes come on top, and the total for a smaller company in Tokyo is 35.43% for financial years starting on or after 1 April 2026. For comparison, Singapore's rate is 17%.
| Tax | Rate in 2026 | What matters |
|---|---|---|
| National corporate tax (hojinzei) | 23.2%. For companies with capital up to 100 million yen - 15% on the first 8 million yen of annual profit | Extended for two more years; 17% if profit exceeds 1 billion yen |
| Local corporate tax (chiho hojinzei) | 10.3% of the national tax amount | Added to the national tax |
| Enterprise tax (jigyozei) and local inhabitants' tax (juminzei) | Depend on the prefecture and company size | The flat per capita part of inhabitants' tax (from 70,000 yen a year) is due even with a loss |
| Special corporate tax to strengthen defence capabilities | 4% of corporate tax minus a 5 million yen deduction | New: for financial years starting on or after 1 April 2026, with a separate return |
| Consumption tax (shohizei) - Japan's equivalent of VAT | 10%, 8% for food | Due if taxable sales in the base period (two years earlier) exceed 10 million yen, with exceptions |
| Withholding tax on dividends to non-residents | 20.42%: 20% plus a reconstruction surtax (after the 2011 earthquake) of 2.1% of the tax | A tax treaty may reduce it |
The defence tax will barely touch small businesses. The 5 million yen deduction is taken from the tax amount. Example calculation: national corporate tax reaches 5 million yen only at a profit of around 24 million yen a year.
Consumption tax and capital. A new company usually pays no consumption tax in its first two financial years, as it has no base-period sales yet. But the exemption does not apply if capital at the start of the year is 10 million yen or more. So a company with 30 million yen of capital for a Business Manager visa pays consumption tax from day one. A company registered under the qualified invoice system (in force since 1 October 2023) also loses the exemption. Without such a number buyers cannot claim input tax credits, so business clients may ask you to register.
Dividends abroad. The base rate is 20.42%, and a tax treaty with the shareholder's country can lower it. Murblz specialists confirm your rate before any payout.
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Describe your task in the chat and we will tell you where to start.
Annual reporting of a Japanese company and the beneficial ownership register
A Japanese company files its corporate tax return within two months of the end of its financial year. With approval it can be extended by a month, but interest accrues on the deferred payment: 2.4% a year in 2026. The company chooses its own financial year.
KK duties that a GK does not have. As a rule a joint-stock company holds an annual shareholders' meeting and publishes its balance sheet (Article 440 of the Companies Act). Article 976 sets a fine of up to 1 million yen for failing to do so. KK directors are re-elected: the default term is 2 years, and in a non-public company (where share transfers need the company's approval) the articles can extend it to 10 years. Each re-election is registered for a fee of 10,000 yen for capital up to 100 million yen. A GK does none of this.
Audit. An independent accounting auditor (kaikei kansanin) is mandatory only for large KKs: capital of 500 million yen or more, or liabilities of 20 billion yen or more.
Beneficial ownership register. Japan has no mandatory beneficial ownership register yet. Since 31 January 2022 a voluntary beneficial owner list (jisshitsuteki shihaisha risuto) has operated: a KK can file it free of charge with the Legal Affairs Bureau and obtain certified copies for banks. The founder of a KK also declares the ultimate owner to the notary when the articles are certified. The government is preparing a law requiring all companies, including unlisted ones, to report beneficial ownership data to the state, and the bill could be submitted as early as autumn 2026.
Bank account in Japan and sanctions restrictions
You can register a Japanese company without visiting, but opening its bank account is another matter. JETRO, citing the Japanese Bankers Association, warns that each bank runs its own screening, may decline based on an overall assessment and generally does not disclose the details. Banks are wary of companies with no director in Japan.
What the bank will want to see. Register extract, seal certificate, the applicant's ID, and a description of the business, owners, account purpose and source of funds. A real office, staff, Japanese clients and a director living in Japan improve the odds. More on the business account in Japan and personal account in Japan pages.
Sanctions restrictions. The Japanese Companies Act does not restrict founders by nationality. The limits come from sanctions: Japan freezes the assets of persons and entities on its sanctions lists, including a number of Russian and Belarusian ones, and since 5 September 2022 providing trust, accounting and audit, and management consulting services to Russia has been banned without a licence from the Japanese government. Prepare source-of-funds and reputation documents before approaching a bank.
If you plan to move to Japan after registration, see the relocation section.
What we do
Japan takes serious preparation: documents in Japanese, certifications in your home country and strict banks. We handle the organisation, and whatever Japanese law reserves for licensed professionals is done by our partners.
- we assess whether Japan fits your goal and say so plainly if another country works better;
- we help choose the form: KK or GK, subsidiary or branch;
- we prepare incorporation documents and powers of attorney, help obtain signature certificates, translations and apostilles;
- we arrange certification of KK articles by a Japanese notary and filing with the Legal Affairs Bureau through partner licensed judicial scriveners;
- we help with a registered address and, for the Business Manager visa, with finding a real office;
- we bring in Murblz accounting and tax specialists for bookkeeping, returns, consumption tax and post-registration notifications;
- we prepare a compliance pack for the bank and help open the company account;
- if you need residence, we arrange a business plan reviewed by a certified expert and the Business Manager application through partner administrative scriveners (gyoseishoshi).
Legal representation - registration filings, immigration documents, disputes - is handled by our partners with a local licence. Other countries are covered in company registration and company registration abroad.
See also
Business account · Personal account · Investment property · Country taxes · All country programs
FAQ
How much does it cost to open a company in Japan?
Can a foreigner start a business in Japan?
Can I register a company in Japan remotely?
What is the minimum capital for a company in Japan?
How much money do you need for a Business Manager visa in Japan in 2026?
KK or GK in Japan: which is better?
What is the corporate tax rate in Japan in 2026?
Are there nationality restrictions for company founders in Japan?
Starting a business in Japan as a foreigner?
We choose between a KK and a GK, register the Japanese company and check whether the project meets the Business Manager visa conditions. The catalogue covers every country.
The Murblz consultant replies straight away in the chat on this page. Describe your situation and we will work it out together.
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