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🏢 Start Your Business in Japan

Last Updated: April 2026

Choose the right company type for your situation

DIY guides save you ¥100,000 - ¥300,000 in professional fees

💡 Yamada Hack: Quick Decision Guide

Not sure which type? Answer these:

1. What is your main purpose?

Commercial business (make money) → GK, KK, BRANCHNon-profit / charitable work → NPO, ASSOCIATIONMarket research only → REP-OFFICE

2. Are you a foreign company entering Japan?

Yes, foreign company → BRANCH, REP-OFFICE, KKNo, starting fresh in Japan → GK, KK, NPO, ASSOCIATION

3. Do you need to raise investment?

Yes, from investors/VCs → KKNo, self-funded → GK, BRANCH, NPO, ASSOCIATION

Choose Your Company Type

GK (合同会社)

LLC / Limited Liability Company

Cost

¥60,000

Time

1-2 weeks

Difficulty

Easy

Best for: Freelancers, small teams, startups

Cheapest option
No notary needed
Flexible profit sharing

KK (株式会社)

Stock Corporation

Cost

¥220,000+

Time

2-3 weeks

Difficulty

Medium-Hard

Best for: Raising investment, B2B credibility, IPO track

Highest credibility
Can issue stock
Bank-friendly

Branch Office (支店)

Foreign Company Branch

Cost

¥120,000

Time

3-4 weeks

Difficulty

Medium

Best for: Foreign companies testing Japan market

No separate capital
Parent company control
Easy to close

Representative Office

Liaison Office (No Business)

Cost

~¥50,000

Time

1-2 weeks

Difficulty

Easy

Best for: Market research only (no business)

No registration needed
No tax obligations
Quick setup
Cannot conduct business or sales

NPO (NPO法人)

Non-Profit Organization

Cost

FREE

Time

3-4 months

Difficulty

Medium-Hard

Best for: Charitable, social benefit activities

Free registration
Tax benefits
Donation-friendly
Limited to 20 activity categories

Association (一般社団法人)

Membership Organization

Cost

¥127,000

Time

2-3 weeks

Difficulty

Medium

Best for: Industry groups, alumni, professional bodies

Any legal purpose
No approval needed
Flexible structure

Frequently Asked Questions

A GK (godo kaisha, analogous to an LLC) costs approximately ¥60,000 to register, has a simpler and more flexible management structure, and requires no notarization of the articles of incorporation. A KK (kabushiki kaisha, analogous to a joint stock corporation) costs ¥200,000 or more to register, requires notarization (¥50,000), has a more formal governance structure with shareholders and directors, and generally commands more credibility with Japanese banks, enterprise clients, and business partners. Most foreign entrepreneurs starting small in Japan choose the GK for cost and flexibility.
Legally the minimum capital for a GK is ¥1, but this is purely theoretical — practical considerations make ¥1,000,000 or more the realistic minimum for a functional business. Banks often refuse to open corporate accounts for companies with nominal capital under ¥500,000 to ¥1,000,000. For a Business Manager Visa application since 2025, a minimum of ¥30,000,000 in capital is required, effectively making the ¥1 minimum irrelevant for visa purposes. Choose your GK capital amount based on your realistic business needs and banking relationships.
Yes, a single foreign individual can own 100% of a GK in Japan as the sole member (shain) and simultaneously serve as the sole representative member (daihyo shain) responsible for managing and legally representing the company. There is no requirement for a Japanese co-owner, Japanese director, or Japanese national of any kind to be involved in a GK. This makes the GK structure particularly straightforward for foreign entrepreneurs establishing a business in Japan independently.
Even a GK with zero revenue in Japan incurs mandatory minimum annual costs: the corporate inhabitants tax (houjin juminzei) base levy of approximately ¥70,000 per year regardless of profit or revenue, plus accounting and tax preparation services which typically cost ¥200,000 to ¥400,000 annually for a small company. If the GK has employees, social insurance (shakai hoken) registration and monthly premiums are mandatory. Total minimum annual overhead for a dormant GK is approximately ¥270,000 to ¥500,000 per year.
The total timeline from starting the GK registration process to receiving your registered company certificate is typically 2 to 4 weeks. Preparation of documents (articles of incorporation, member registration, capital deposit) takes approximately 1 to 2 weeks. Unlike a KK, a GK does not require notarization of its articles of incorporation, saving approximately ¥50,000 and 1 week. Registration at the Legal Affairs Bureau (Houmukyoku) processes in approximately 5 to 10 business days after document submission.

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