Starting a company in Japan as a non-resident can feel like walking through a maze of paperwork, language barriers, and unfamiliar legal terms. But it doesn’t have to be overwhelming. In this blog, we answer the most frequently asked questions from foreign founders, based on real experiences, updated legal guidance, and what we’ve seen work on the ground.
Whether you’re just exploring the market or already preparing incorporation documents, this guide will help you avoid common pitfalls and make confident decisions.
Need more detailed guidance? Visit our complete guide to incorporating an entity in Japan for more resources.
Can a Non-Resident Start a Business in Japan?
Yes, but with caveats.
A non-resident can legally incorporate a company in Japan, but certain functions (like being the representative director of a KK) typically require a resident. There are three ways foreign founders usually navigate this:
- Use a resident director (temporarily or permanently)
- Obtain a Business Manager Visa
- Appoint a nominee director (until relocation is finalized)
Pro tip: Setting up the entity first can help you later qualify for a Business Manager Visa.
What Types of Companies Can Non-Residents Register in Japan?
The two most common structures are:
- Godo Kaisha (GK): A flexible, LLC-style entity. Easier setup, less formal governance.
- Kabushiki Kaisha (KK): Similar to a corporation. Suitable for larger operations, investors, or formal brand presence.
Both can be owned 100% by non-residents. There are no nationality restrictions on ownership.
Other options (less common):
- Branch office (for foreign companies expanding into Japan)
- Representative office (non-trading presence only)
Do I Need to Be in Japan to Incorporate a Company?
No, but it helps.
You can register a company remotely, but certain steps require a Japanese address, registered seal, and sometimes physical identity verification.
If you’re outside Japan, you’ll need:
- A local representative director (for a KK)
- A legal mailing address (virtual office may work)
- Documents translated into Japanese and properly notarized (if abroad)
WeConnect often supports founders with remote setups using power of attorney.
How Much Capital Do I Need to Register a Company in Japan?
Technically, you can incorporate with as little as ¥1. In reality, most companies set capital at:
- GK: ¥500,000 to ¥3,000,000
- KK: ¥5,000,000 to ¥10,000,000+
Why? Because:
- It affects visa eligibility
- Banks and landlords expect a credible capital amount
- It’s publicly visible and affects reputation
Under ¥10M in capital can grant you certain tax breaks. See our full guide on capital requirements here.
What Are the Steps to Register a Company in Japan?
Here’s the general flow:
- Choose a company type (GK or KK)
- Draft Articles of Incorporation
- Secure a registered office address
- Create and register your company seal (inkan)
- Deposit capital into a Japanese bank account
- Submit registration to the Legal Affairs Bureau
- Receive company certificate & seal certificate
- Complete post-registration steps (tax, banking, visas, insurance)
Timeline:
- GK: ~2–3 weeks
- KK: ~4–6 weeks (due to notarization step)
WeConnect can usually expedite this with bilingual admin and local coordination.
Do I Need a Japanese Business Address?
Yes. All companies in Japan must register an address with the Legal Affairs Bureau. This can be:
- A physical office
- A shared or virtual office (depending on city regulations)
- A legal address service (WeConnect offers this)
Important:
If you plan to apply for a visa later, using a genuine lease instead of a virtual address can improve your chances of approval.
What Documents Are Required for Company Registration?
Key documents include:
- Articles of Incorporation (in Japanese)
- Capital contribution statement
- Seal registration form
- Director’s and founder’s identification (passport or residence card)
- Lease agreement or address proof
- Notarized copies (if outside Japan)
All documents must be submitted in Japanese. Some must be signed using a registered company seal (inkan), not just a signature.
Can I Open a Japanese Bank Account Without Living in Japan?
Technically, yes. But it’s difficult.
Most major Japanese banks require the representative director to have:
- A Japanese residence card
- A registered inkan
- Proof of address in Japan
Some online banks and regional branches are more flexible but expect a tough screening process.
If you don’t have a resident director, consider:
- Using payment platforms initially (Stripe, Payoneer)
- Opening a bank account after relocating
- Appointing a local director temporarily
Do I Need a Company Seal (Inkan)?
Yes. The company seal is legally binding in Japan. It replaces a signature on official documents and must be:
- Designed (usually with the company name in Kanji or Romaji)
- Registered at the Legal Affairs Bureau
- Protected (since misuse is legally binding)
For KK incorporation, the seal registration certificate is mandatory.
What Are the Tax Obligations for a New Company in Japan?
Once registered, your company is subject to several taxes, including:
- Corporate tax
- Consumption tax (VAT) – if capital exceeds ¥10M or revenue exceeds thresholds
- Business enterprise tax
- Inhabitant tax
You must file with:
- The tax office within 2 weeks of incorporation
- Social insurance (if hiring)
- Labor office (if hiring)
Japan’s tax system is complex, and most companies hire an accountant (税理士 – zeirishi) for ongoing compliance.
Can I Sponsor Myself for a Visa Through My Company?
Yes, via the Business Manager Visa.
To qualify, you must show:
- A legitimate registered company
- Office lease (not virtual)
- ¥5,000,000+ in capital
- A viable business plan
- Either staff hired or early contracts
This visa allows you to legally manage and reside in Japan as the company’s executive.
How Long Does It Take to Incorporate a Company in Japan?
- GK (simpler structure): 2–3 weeks
- KK (formal, notarized): 4–6 weeks
Add 1–2 weeks if submitting from abroad due to mailing delays or notary validation.
Can I Hire Employees Right After Incorporation?
Yes, but you must register for:
- Social insurance
- Labor insurance
- Payroll tax filings
- Pension contributions
All employees in Japan must be enrolled in Shakai Hoken (社会保険), which includes health, pension, and employment protections.
Non-compliance can lead to heavy penalties.
Can I Issue Invoices and Accept Payments Immediately After Registration?
Once your company is registered, you can:
- Issue invoices with your company name and seal
- Accept payments into your corporate bank account (if opened)
- Apply for Invoice Issuer Status (適格請求書発行事業者) if subject to Japan’s new invoice system (post-2023)
Note: Customers in Japan may ask for proof of registration or tax ID before processing payment.
Do I Need a Local Partner or Shareholder?
No. There is no legal requirement for a Japanese national or local partner to be a shareholder.
You can have:
- 100% foreign ownership
- Sole founder or multiple foreign founders
- Foreign directors (with visa or via proxy)
However, you may need local representation for certain tasks (e.g., opening a bank account, visa sponsorship).
Is It Better to Set Up a KK or a GK as a Non-Resident?
It depends on your goals:
| Factor | KK | GK |
| Investor credibility | ✅ Strong | ⚠️ Less recognized |
| Visa eligibility | ✅ Preferred | ✅ Valid |
| Formal governance | ✅ Required | ❌ Flexible |
| Setup cost & timeline | ❌ Higher | ✅ Faster |
| Public trust (in Japan) | ✅ Strong | ⚠️ May raise questions |
Summary:
If you’re building a scalable, investor-facing business, KK is ideal.
If you’re going lean or testing the market, GK works well.
Can I Change My Company Type Later?
No, you cannot convert a GK into a KK or vice versa. You’d need to:
- Register a new company
- Transfer assets, staff, or IP
- Close the original entity
That’s why it’s important to choose the right structure upfront.
What Is the Total Cost to Incorporate in Japan as a Foreigner?
Here’s a typical breakdown (in JPY):
| Expense | GK | KK |
| Government registration fee | ¥60,000 | ¥150,000 |
| Notary fee (KK only) | – | ¥50,000 |
| Revenue stamps | ¥40,000 | ¥40,000 |
| Seal creation & registration | ¥10,000–¥20,000 | ¥10,000–¥20,000 |
| Legal & admin support (optional) | ¥100,000–¥300,000 | ¥150,000–¥400,000 |
Total:
- GK: ~¥200,000–¥400,000
- KK: ~¥300,000–¥600,000
Can I Register a Company with an English Name?
Yes, but it must also meet the following rules:
- Must use Roman characters (Romaji)
- Must include the company type (e.g., GK or KK)
- Cannot include restricted terms (e.g., “bank,” “insurance”) without approval
Many companies opt for a bilingual naming strategy to maintain compliance while marketing globally.
What Support Is Available for Foreign Founders?
Foreign founders in Japan can access:
- Company set-up specialists (like WeConnect)
- Visa consultants
- Bilingual tax accountants (zeirishi)
- Legal address and admin support
- Business incorporation packages (including everything above)
WeConnect offers end-to-end support, including remote incorporation, visa coordination, address setup, and post-registration admin.
Japan Is Open for Business (If You Know the Rules)
Japan has become increasingly open to foreign founders. The rules are clear but strict. Getting it right requires more than translation. It requires deep local knowledge, strong administrative execution, and knowing how to blend compliance with strategy.
WeConnect has helped hundreds of founders navigate the Japanese company setup process, from incorporation to bank setup to hiring:
- Fast-track incorporation (KK or GK)
- Bilingual document preparation
- Visa and legal address support
- Ongoing admin & compliance
Reach out today for a free consultation and advice on where to start with one of our Japan experts.ce.