How to Set Up a Company in Japan as a Foreigner (2026)

Japan's company structures

KK (Kabushiki Kaisha): Japan's most recognised company structure — the equivalent of a corporation or joint-stock company. Required by many Japanese enterprises for contracting, and expected by institutional customers. More complex governance; board of directors or audit structure.

GK (Godo Kaisha): Japan's LLC equivalent. Simpler structure, fewer governance requirements, faster and cheaper to form. Used by foreign companies as an entry-level vehicle (Amazon Japan is famously a GK). Growing acceptance but still less prestigious than a KK for enterprise sales.

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The language barrier

Japan's company formation process is conducted entirely in Japanese. All documents filed with the Legal Affairs Bureau (法務局 — Homukyoku) must be in Japanese. Bank account opening at Japanese banks requires Japanese-language communication.

Practical implication: Non-Japanese-speaking founders need a Japanese lawyer, judicial scrivener (司法書士 — shihō shoshi), or administrative scrivener (行政書士 — gyōsei shoshi) to handle the formation process.

Cost of professional handling: JPY 150,000–400,000 in professional fees, depending on the type and complexity.

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Step 1: Obtain a representative who can accept notices in Japan

All companies must have a Representative Director or Representative Member (GK) who can receive official notices in Japan. This person need not be Japanese, but must have a Japanese address.

For non-residents: This is the critical constraint. The Representative Director must have an address in Japan — either: 1. Your own Japanese address (if you have a visa/residence card) 2. An address provided by a Japanese professional (lawyer or scrivener) — this is not universally available; some professionals decline

Some formation agents offer a registered address service for the Representative Director for an additional fee.

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Step 2: Create a company seal (hanko)

Japan's legal system still requires certain documents to be sealed with a registered company seal (会社実印 — kaisha jitsuin). This is ordered from a seal-maker (hanko shop) and then registered with the Legal Affairs Bureau.

Cost: JPY 5,000–20,000 for the seal

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Step 3: Formation

For a GK: 1. Prepare Articles of Incorporation (定款 — teikan) in Japanese 2. Deposit capital into a personal bank account of the representative member (pre-incorporation; bank certificate required) 3. File with the Legal Affairs Bureau via a shihō shoshi or online (J-LIS portal) 4. Legal Affairs Bureau approves and registers: 1–2 weeks

For a KK: 1. Prepare Articles of Incorporation 2. Have Articles of Incorporation notarized by a Japanese notary (公証役場 — kōshō yakuba) — adds cost (~JPY 52,000) and time 3. Deposit capital; obtain bank certificate 4. File with Legal Affairs Bureau 5. Timeline: 2–4 weeks from start to finish

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Step 4: Banking

Japanese banking for foreign-owned companies is notoriously difficult:

• Major Japanese banks (Mitsubishi UFJ, Sumitomo Mitsui, Mizuho, Japan Post Bank):
• Require a Japanese-speaking representative at account opening
• Extensive documentation in Japanese
• Long approval processes (2–4 months is common)
• High rejection rates for companies without Japanese employees or established business relationships

Regional banks and credit unions: Occasionally more accessible for established businesses with local ties.

FinTech alternatives: PayPay Bank (formerly Japan Net Bank), GMO Aozora Net Bank, UI Bank. More accessible but limited functionality for international transfers.

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Corporate tax rates

Smaller companies (capital ≤JPY 100M) qualify for reduced rates on first JPY 8M income.

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Real cost (Year 1)