Izanau
Beta
  • English
  • 日本語
  • 中文
  • Articles
  • Jobs
  • Companies
  • Candidates
  • About
  • Students
  • 企業向け
  • 企業向け
  • FAQ
  • Work Tips
  • Life Tips
  • Register
  • Log In
日本語 中文
  • Home
  • Articles
  • Tips
  • Share on LinkedIn
  • Share on Twitter
  • Share on Facebook
  • Share on Google+

How to Set Up a Company in Japan

Wednesday, September 18, 2019

Although you can conduct a business with proper licenses and visa as a sole proprietorship (an unincorporated business) in Japan, there may be advantages to incorporating a company.

life in JapanJobs in Japanwork in japanJapanese legal systemStart a business in Japanhow to start a business in Japancareers in Japanstarting a business in JapanKK vs GK Japanstock companylimited liability companybusiness in Japan
How to Set Up a Company in Japan

Why set up a company in Japan?

The main reasons for setting up a company are:

  1. Limited liability. Incorporating a company is a way to protect your personal assets in the case that your business goes bankrupt or is sued or otherwise is held liable for damages. By incorporating your business, you and your investors will only ever lose the amount invested in the company (assuming that the incorporation is found to be bona fide). 

  2. Tax advantage. Start-up businesses frequently lose money in the first few years and if your business is incorporated, you can deduct expenses of the company against revenue and avoid taxes on the revenue. However, if the revenue is less than 10 million yen, it might be better to remain unincorporated. 

  3. Investment. Having a company allows for equity from investors and makes it easy for investors to understand their rights. 

  4. Creditability. As described below, some clients especially in Japan feel more comfortable dealing with companies rather than individuals. 

  5. Visa. As Japan does not have investment visa, if you have money, forming a company and becoming an officer of the company might be a way to qualify for a visa to stay in Japan (Business Manager Visa).

The most common company forms in Japan are kabushiki-kaisha 株式会社(stock company; “KK”) and godo-kaisha 合同会社(limited liability company; “GK”).

Both GK and KK can achieve the benefits of incorporation listed above for a small business. Generally, Japanese people feel more comfortable dealing with a KK as it is the most common form of company in Japan and previously required a large amount of initial capital. However, recently, GK has become more common and many successful companies are GK, so the difference in credibility has lessened. As a GK can be incorporated for much less than a KK, GK is usually the best for start-ups.

Differences between KK and GK     

how to start a company in japan

*The government office where registration documents are filed.

** A notary (kosho nin) certifies that the articles of incorporation are properly prepared in accordance with laws.

 

The articles of incorporation outline the governance of a company. In Japan, the articles of incorporation for a KK will contain the following information:

  • Corporate name

  • Business purposes

  • Location of head office

  • Matters concerning shares or other equity

  • General meeting of shareholders 

  • Matters concerning board of directors, board of auditors, directors and auditors  

  • Matters concerning accounting such as the start and end of the fiscal year. 

You will have to decide on a corporate name, business purposes (also called “objectives”) and the location of head office (location must be in Japan). If you hire a legal professional, she will provide you with templates for the articles of incorporation. In Japan, the practice is to have a very detailed list of business purposes for a KK. 

The registered seal requirement involves creating a seal and registering it with a municipal office and a signature certificate is prepared by the competent authority in your home country or other country (e.g., embassy). 

If you live outside of Japan and have no bank account in Japan, setting up a KK might be hard.  Under the KK formation rules, when you set up a KK, you need to transfer the capital to your Japanese personal bank account first.  If you don’t have a personal bank account in Japan, you are allowed to let someone who has a Japanese bank account join as an Initial Director and set up the KK with his/her bank account. A Japanese bank account is not necessary for a GK.

The capital amount depends on whether you tend to apply for a visa using your newly incorporated company. If you have such intention, the capital should be more than 5,000,000 yen as that is one of requirements to apply for the Business Manager Visa.  If not, more than one yen of capital is acceptable. However, without a Japanese working visa, you cannot receive a salary from your company in Japan.

company incorporation

Regarding your company registration, you should hire a shiho shoshi lawyer who will take care of the entire company formation.  If you need a Business Manager Visa and any business license, you should hire a gyosei shoshi lawyer.

The above is general information and the actual process might differ depending your circumstances.


** Please read “The Who’s Who of the Japanese Legal World.”   For a KK, Japanese attorney or a shiho shoshi (judicial scrivener) is required although you can register a KK by yourself with the notarization of the AOI by a notary (kosho nin). A gyosei shoshi (administrative scrivener) may prepare the paperwork for a GK or KK, but may only register a GK.





----------------------------------------------

Want to work in Japan?

Sign up here to connect directly with Japanese companies. 

Or check out our latest job postings here.



  • Share on LinkedIn
  • Share on Twitter
  • Share on Facebook
  • Share on Google+
About the Author
Chris Rathbone

Lawyer in Tokyo

  • Latest Jobs
ドローンサービスのフロント・バックエンド業務
Other IT, Communications
DAIYASERVICE Inc.
ドローンによる空撮・インフラ点検・実証実験のフロントおよびバックエンドの業務を担当頂きたいと思います。かなり多岐に渡りますので、マルチタスクが好きな方を歓迎します。その他、ブロックコーディングソフト「Scratch」を使用したプログラミング教室の講師のお仕事もございます。
Monthly Salary ¥20 ~ ¥30
Chiba 千葉市花見川区
Full-time
Apply Now
Brand Ambassador
Business Consulting, Think-tanks
INS Global KK
Type of contract: commission only Supervisor: Operations Manager Work Location: Japan - Remote Work (Office based in Tokyo)
Tokyo Minamiaoyama, Minato-ku
Not applicable
Apply Now
English teacher for kids in Gifu prefecture
Education, Training
英会話スクールWin
We are currently accepting applications for a position of a new part-time native English Instructor. We are a fun but professional organization and give students practical English lessons. We are looking for somebody to ...
Monthly Salary ¥160K ~ ¥190K
Gifu 可児市皐ケ丘4-13
Part-time
Apply Now
Latest Articles
  • Monday, October 26, 2020
  • Labor Shortages in Japan (July 2020 Statistics)

  • Friday, October 16, 2020
  • What Might Japan’s Energy Future Look Like?

  • Thursday, October 8, 2020
  • Jobs in Japan During a Global Pandemic

  • Sunday, September 6, 2020
  • Discrimination and Stigma in Japanese Society: The Case of COVID-19

  • Tuesday, August 4, 2020
  • Racism Denial: The Case of Japan

  • Friday, July 17, 2020
  • Labor Shortages in Japan (May 2020 Statistics)

  • Tuesday, June 23, 2020
  • Homelessness, Social Stigma, and Fringes of Japanese Society

  • Monday, June 8, 2020
  • Gambling, Pachinko and the Impact of the COVID-19

  • Friday, June 5, 2020
  • Government Support for International Students and Foreigners Living in Japan During the Coronavirus

  • Monday, May 18, 2020
  • COVID-19 and University Life in Japan

  • Saturday, May 9, 2020
  • How to Apply for the ¥100,000 Coronavirus Government Support Money

  • Wednesday, May 6, 2020
  • To Those Who Have Lost Their Jobs Because of the State of Emergency In Japan

  • Wednesday, April 29, 2020
  • What is it like being LGBT in Japan?

  • Friday, April 24, 2020
  • ¥100,000 Japanese Government Support Money. Do you qualify?

  • Thursday, April 23, 2020
  • Visas and Government Support for Foreigners During the Coronavirus in Japan

  • Thursday, April 16, 2020
  • Why Can’t Japan Work From Home?

  • Friday, April 3, 2020
  • Japan Coronavirus Information Site List by Prefecture (Phone Consultations Available)

  • Monday, March 30, 2020
  • Job Search Support for International Students in Japan

  • Tuesday, March 24, 2020
  • The Coronavirus and the Olympics

  • Thursday, March 12, 2020
  • What to do during Volcanic Eruptions in Japan

  • Wednesday, March 4, 2020
  • Qualifying for the Highly Skilled Foreign Professional Visa Schedule (1) in Japan

  • Thursday, February 27, 2020
  • What to do when you miss the last train home in Japan

  • Friday, February 21, 2020
  • Viral and Vulnerable: Japan and the Coronavirus

  • Tuesday, February 18, 2020
  • Japan’s Future: Will they embrace their hāfu population?

  • Wednesday, February 12, 2020
  • Jobs with Labor Shortages in Japan, Ranked (2019) January 2020 Update

  • Thursday, February 6, 2020
  • Hāfu: What it means to Japanese in a Changing Japan

  • Saturday, November 30, 2019
  • A Beginner’s Guide to the Labyrinth of Dating Apps in Japan

  • Thursday, November 21, 2019
  • Racing with Marriage - A Peculiar Trend of Modern Japan

  • Friday, November 1, 2019
  • Cost of living in Japan: Housing

  • Thursday, October 31, 2019
  • MyMizu App - Water tapping app in Japan

See All Articles

Work in Japan, Enjoy Japan

Finding a job abroad may seem challenging, but Izanau is here to make the process simple. Register now and you're one step closer to enjoying your new life in Japan.
Register your account

Jobs In Japan Made Simple
Copyright © 2021 Active Gaming Media. All Rights Reserved
About Izanau
  • Contact Us
SiteMap
  • Articles
  • Jobs
  • Companies
  • Candidates
Terms of Use
  • For Candidates
  • For Corporations
Privacy
  • Privacy Policy
IZANAUパートナープログラム
  • 紹介会社様はこちら
IZANAUパートナープログラム
  • 外国人材を紹介したい方はこちら
Sign Up
  • For Candidates
  • For Corporations
Language
  • English
  • 日本語
  • 中文
Follow Us
  • Twitter
  • Facebook
  • LinkedIn
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Izanau.