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Japan Business Owner Portal

Virtual Office Assistant & Compliance

Funding & Launch Toolkit

Everything you need to fund and legally launch your business in Japan

JFC Loan Eligibility Check

Japan Finance Corporation (JFC) offers low-interest startup loans. Check if you qualify.

Government Grants (補助金)

Free money from the government - no repayment needed!

IT Introduction Subsidy

For buying software/PCs to improve efficiency.

Up to ¥4.5M
Official Site

Monodukuri Subsidy

For developing new products/services.

Up to ¥10M
Official Site

Career Up Subsidy

For promoting contract staff to full-time.

¥570k per staff
Official Site

YAMADA HACK: The 1/3 Rule

JFC wants to see you have at least 1/3 of the total project cost as self-capital. Asking for ¥3M loan? Have ¥1M saved. This shows commitment and reduces their risk.

⚠️ Warning: "Show Money" (借りたお金) borrowed from friends is a red flag. They check bank statements!

Company Type: GK vs KK

合同会社 (GK)

Godo Kaisha - LLC equivalent

  • Registration: ¥60,000
  • No notary required
  • Flexible profit sharing
  • Perfect for small teams

株式会社 (KK)

Kabushiki Kaisha - Corporation

  • Registration: ¥200,000+
  • Notary certification needed
  • Higher credibility
  • Can issue stock

⚠️ Business Manager Visa Rule Change (October 2025)

The minimum capital requirement has increased from ¥5M to ¥30M. A full-time Japanese or Permanent Resident employee is now also required. If you currently hold a Business Manager visa, you have a grace period until October 16, 2028. See our full guide →

Japan Business Registration FAQ

These are Japan's two main company types for small businesses:

合同会社 (GK - Godo Kaisha) - LLC equivalent

  • Setup cost: ~¥60,000 (no notary fee)
  • No minimum capital requirement
  • Flexible profit distribution
  • Simpler management structure
  • Less prestigious image

株式会社 (KK - Kabushiki Kaisha) - Corporation

  • Setup cost: ~¥200,000+ (includes ¥50,000 notary fee)
  • Higher credibility with banks/clients
  • Required for some licenses
  • Can issue shares, go public eventually
  • More complex reporting requirements

Recommendation: Start with GK to save money. You can convert to KK later if needed (costs ~¥100,000).

Frequently Asked Questions

A Japanese company must file annually: a corporate income tax return (houjin zei shinkokusho) within 2 months of the fiscal year end, a corporate inhabitants tax return simultaneously, a consumption tax return if registered, payroll income tax annual reports (houshuu chousei) by January 31, social insurance annual reports, and the annual company registration renewal at the Legal Affairs Bureau if no changes occurred. Missing tax filing deadlines incurs late payment penalties, and the minimum corporate inhabitants tax is owed even by companies with zero revenue.
Critical Japanese business tax deadlines are: corporate income and inhabitants tax returns due 2 months after fiscal year end (extension to 3 months possible for KK companies); consumption tax returns due 2 months after fiscal year end (or quarterly for large taxpayers); payroll income tax withholding payments due by the 10th of the following month (small companies with fewer than 10 employees may use a semi-annual payment system); and the year-end payroll adjustment (nenmatsu chosei) with employee declaration forms due by January 31.
Yes, foreign-owned Japanese companies have identical rights and obligations regarding employment as domestically owned companies. Required obligations when hiring employees include registering for social insurance (health insurance and pension through shakai hoken), enrolling in employment insurance (koyo hoken), withholding income tax from salaries, complying with minimum wage laws by prefecture, and adhering to all labor standards regarding working hours, overtime pay, and leave entitlements. These employment obligations apply from the moment you hire your first regular employee.
Japan's invoice system (tekikaku seikyusho seido), implemented in October 2023, requires businesses to issue qualified invoices (tekikaku seikyusho) containing a registered tax number to allow their clients to claim consumption tax input credits. If your business issues invoices to other businesses and your clients want to reclaim consumption tax on your fees, you must register as a qualified invoice issuer (tekikaku seikyusho hakkousha) with the National Tax Agency. Businesses selling only to consumers (B2C) are less directly impacted by the invoice registration requirement.
Consumption tax (shouhizei) registration becomes mandatory when your taxable sales exceed ¥10,000,000 in the base period, which is the fiscal year two years prior to the current year. New companies are generally exempt from consumption tax for their first 2 years of operation unless they voluntarily register to issue qualified invoices under the invoice system. Capital of ¥10,000,000 or more at founding also triggers mandatory consumption tax registration regardless of sales volume, which is a consideration when setting initial capital for your Japanese company.