Tokyo is one of the most accessible major cities in Asia for foreign entrepreneurs looking to establish a legitimate business presence. The process is more structured than many expect, and with the right preparation, you can have a registered company operational within four to eight weeks. This guide walks through the two main entity types, the registration process, and the support resources available to help you navigate the system.
Choosing Your Entity Type: KK vs GK
Japan offers two primary structures for small and medium-sized businesses: the Kabushiki Kaisha (KK) and the Godo Kaisha (GK). Both are recognized legal entities under the Companies Act and provide limited liability protection for their founders. The right choice depends on your goals, your investor base, and how you want to be perceived in the market.
Kabushiki Kaisha (KK): The Standard Corporation
The Kabushiki Kaisha is Japan’s equivalent of a corporation or public limited company. It is the most recognized business form in Japan and the one most Japanese partners, landlords, and clients expect to see. KKs issue shares, have a board structure, and are required to hold annual general meetings. They are subject to stricter disclosure requirements and slightly higher ongoing administrative costs, but the credibility they confer is difficult to overstate in a market where reputation and structure matter deeply.
The minimum capital requirement for a KK was abolished in 2006, meaning you can technically incorporate with one yen. In practice, most advisors recommend capitalizing at a level that demonstrates seriousness, typically 500,000 yen or more, particularly if you plan to hire staff or apply for a business manager visa. A KK requires at least one director (torishimariyaku) and one auditor unless the articles of incorporation waive the auditor requirement for small companies, which most do.
Godo Kaisha (GK): The Flexible Alternative
The Godo Kaisha is Japan’s equivalent of a limited liability company (LLC). It is simpler to form, cheaper to maintain, and offers more flexibility in how profits and management responsibilities are distributed among members. The GK requires only one member (which can be a foreign individual or foreign corporation) and has no mandatory board or auditor requirements.
The GK is often the preferred structure for wholly foreign-owned subsidiaries of US companies because it can be treated as a disregarded entity for US tax purposes, simplifying cross-border tax compliance. Apple Japan GK and Amazon Japan G.K. are two of the most well-known examples of major multinationals using this structure. For solo operators and small teams, it is frequently the faster and cheaper path to registration.
The Registration Process
Articles of Incorporation
The first step in forming either a KK or GK is drafting the Articles of Incorporation (Teikan). This document defines your company’s name, registered address, business purpose, capital amount, and organizational structure. For a KK, the Teikan must be notarized by a Japanese notary public (koshonin) before filing, which costs approximately 50,000 yen. GK Teikan do not require notarization, saving both time and money.
Your registered address must be a physical address in Japan. Virtual office services are widely accepted for this purpose and can be arranged in Tokyo for as little as 5,000 to 15,000 yen per month. Many providers in Shinjuku, Marunouchi, and Shibuya cater specifically to startups and foreign-owned businesses.
Filing with the Legal Affairs Bureau
Once your Teikan is in order, you file for incorporation at the Legal Affairs Bureau (Homukyoku) with jurisdiction over your registered address. For Tokyo-based companies, this is the Tokyo Legal Affairs Bureau. The filing fee is 150,000 yen for a KK and 60,000 yen for a GK, paid via revenue stamps (shugyo inshi).
After filing, incorporation is typically confirmed within one to two weeks. You will receive a company registration certificate (touki jiko shomeisho) and a company seal certificate (inkan shomeisho), both of which are required to open a bank account, sign leases, and execute contracts. Getting the company seal (hanko) made before filing is essential since you will need it to authenticate your Teikan and registration documents.
Post-Registration Requirements
After incorporation, you must notify the relevant tax offices within two months of establishment. This includes filing a notification with the National Tax Agency (Kokuzei-cho) and the local tax office (zeimusho) in your ward. You will also need to register with the Social Insurance office (nenkin jimusho) if you plan to hire employees, and enroll in workers’ compensation insurance if you bring on staff.
JETRO: Your First Call
The Japan External Trade Organization (JETRO) provides free consulting services specifically for foreign companies looking to establish operations in Japan. JETRO’s Invest Japan Business Support Centers (IBSCs) are located in Tokyo, Osaka, Nagoya, and five other major cities. In Tokyo, the IBSC is located in the Ark Mori Building in Roppongi.
Services include free consultations with bilingual staff on company setup, taxation, visa procedures, and real estate. JETRO can also connect you with vetted lawyers, accountants, and translation services. For anyone entering Japan for the first time, JETRO is the single most valuable free resource available and should be your first contact before engaging any paid advisors.
Using a Formation Service
If you want to handle the structural setup from outside Japan before you arrive, international formation services can help. Northwest Registered Agent specializes in business formation with a privacy-first approach and flat-fee pricing, and is a solid starting point for US-based founders planning a Japan expansion who want their domestic entity properly structured before tackling the foreign registration. Having a clean, properly capitalized US holding company is often the cleanest structure for rolling out a Japanese subsidiary.
For the Japan-side setup, most foreign founders engage a Japanese judicial scrivener (shihoshoshi) or administrative scrivener (gyoseishoshi) to handle the actual filing. Fees for a full-service GK formation typically run 80,000 to 150,000 yen excluding government fees. KK formation with a notary runs 200,000 to 350,000 yen all-in for a simple structure.
Visa Considerations
Foreign nationals who want to actively manage a company in Japan will need a Business Manager Visa (Keiei Kanri Visa). Requirements include having a fixed office in Japan, meeting a minimum capital threshold (typically 5 million yen or two full-time employees), and demonstrating that the business is viable. JETRO consultants can help you structure your application, and processing typically takes two to three months through the Immigration Services Agency.
For more on operating in Tokyo once you are set up, read our guide on small business funding in Tokyo and our overview of business lawyers in Tokyo for finding legal counsel.
Start Building Your Tokyo Presence
Starting a business in Tokyo is entirely achievable for a foreign founder who does the preparation work. The legal framework is well-organized, the support infrastructure is strong, and the market rewards operators who take the time to understand local norms. Use JETRO, hire a local scrivener, and make sure your entity is properly capitalized from day one.
For more city guides, business frameworks, and operator resources, join the Hustlers Library community for free.
For a full overview of doing business in Tokyo, see our complete guide to doing business in Tokyo.
Ready to Know Where You Stand?
The Business Journey dashboard maps your exact position across all 13 stages. Track your progress, unlock resources for each step, and build with a framework used by thousands of founders at Hustler's Library.
No credit card required · Takes 3 minutes · Personalized to your stage
