Entity Formation in Japan

Ready for a permanent Japanese presence? We help you incorporate the right way, and stay alongside you for the accounting, payroll, and compliance that follow. We offer independent advice, including whether a K.K. or G.K. is the best solution for your business.

  • Independent advice
  • Vetted partners
  • Honest timing

What incorporating in Japan means

A K.K. (Kabushiki Kaisha, stock company) is the standard vehicle for a serious, permanent presence: its articles of incorporation must be notarised by a Legal Affairs Bureau-affiliated notary before registration, and it carries the credibility most banks, landlords, and larger Japanese counterparties expect. A G.K. (Godo Kaisha, the LLC-equivalent) is the lighter, cheaper alternative: no notarisation step at all, articles filed straight to the Legal Affairs Bureau, and used by many foreign entrants including large Japan subsidiaries of multinational tech companies. Both vehicles set statutory minimum share capital at just JPY 1 (Japanese Yen), a legacy of the 2006 Companies Act reform. When you form either, you become the legal employer and operator in Japan, with full control and no per-employee EOR fees, in exchange for the setup time and the ongoing obligations.

01

Your own company

Your own K.K. or G.K. makes you the legal employer and operator in Japan, with full control of employment terms and a local brand presence.

02

Lower cost at scale

No per-employee EOR fees. For permanent, proven headcount, owning the entity is more cost-effective than ongoing EOR arrangements.

03

Setup takes time

Incorporation timelines depend on the vehicle: a G.K.’s articles go straight to the Legal Affairs Bureau, while a K.K.’s need notarising first. Either way, you cannot employ anyone until Legal Affairs Bureau registration completes. Timing the move matters, which is why many companies bridge with an EOR first.

How incorporating in Japan works, step by step

From structuring the company to operating it compliantly.

01 — Structure & prepare

We confirm incorporation is right for you, then help you choose between a K.K. and a G.K., prepare the articles of incorporation, and arrange your registered Japanese office address.

02 — Capital & notarisation

A K.K.’s articles of incorporation must be notarised by a notary affiliated with the Legal Affairs Bureau before registration, with the fee tiered by capital: JPY 30,000 under JPY 1 million (cut to JPY 15,000 since 1 December 2024 for a small K.K. with three or fewer natural-person incorporators who each subscribe the full initial share issue and no board of directors named in the articles), JPY 40,000 for JPY 1-3 million, JPY 50,000 for JPY 3 million and above, plus a JPY 40,000 revenue stamp for a non-electronic original. A G.K.’s articles skip this step entirely. Statutory minimum share capital for either vehicle is just JPY 1, though most clients fund JPY 500,000 to JPY 3,000,000 for banking and credibility, and JPY 5 million if the entity needs to sponsor its own Business Manager visa.

03 — Register the company

The company is registered with the Legal Affairs Bureau, where the registration license tax is paid (capital x 0.7%, minimum JPY 150,000 for a K.K. or JPY 60,000 for a G.K.), then registered for corporate tax with the National Tax Agency and enrolled for consumption tax if required, so you can operate and employ compliantly.

04 — Operate & stay compliant

Business bank account, then ongoing accounting, payroll, filings, and annual reporting, all of which we can run for you.

What incorporating in Japan costs

Two kinds of cost: the one-off formation, and the ongoing operating obligations. Japan’s formation cost depends on the vehicle you choose; the real commitment, either way, is the ongoing compliance. We give you a clear figure before you commit.

Share capital & formation

Statutory minimum share capital for both a K.K. and a G.K. is a nominal JPY 1, though most clients fund JPY 500,000 to JPY 3,000,000 for banking and credibility (JPY 5 million if the entity needs to sponsor its own Business Manager visa). The registration license tax is capital x 0.7%, minimum JPY 150,000 for a K.K. or JPY 60,000 for a G.K. A K.K.’s notary fee is tiered by capital, from JPY 30,000 up to JPY 50,000 plus a JPY 40,000 revenue stamp; a G.K. has no notary fee at all.

Corporate tax

23.2% national rate for ordinary corporations, reduced to 15% on the first JPY 8 million of taxable income for SMEs (capital JPY 100 million or under). On top sits National Local Corporate Tax at 10.3% of that liability, prefecture-set enterprise tax, corporate inhabitant tax, and, from fiscal years starting April 2026, a new Special Defense Corporate Tax. Combined effective rates are commonly cited around 29-33% for large Tokyo companies and around 35% for SMEs.

Consumption tax

Standard consumption tax is 10% (a National 7.8% plus Local 2.2% split), with an 8% reduced rate for takeaway food, non-alcoholic beverages, and qualifying newspaper subscriptions. It is a national tax and applies the same way regardless of which vehicle you incorporate.

Ongoing obligations

Accounting, monthly payroll (national income tax withholding, the Reconstruction surtax, local inhabitant tax, and the four-branch social insurance stack), consumption tax and corporate tax filings, and annual financial statements, all of which we can manage for you.

Why form your Japanese company through Bradford Jacobs

Why companies incorporate in Japan through us rather than a one-off formation agent.

We advise you on the best time to incorporate

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

We know exactly when a notary is required

A K.K.’s articles must be notarised by a Legal Affairs Bureau-affiliated notary before registration; a G.K.’s never are. Getting that distinction wrong costs you time, and on a K.K., a real fee. We route every formation through the correct process from day one.

  • Right vehicle, right process
  • K.K. notarisation handled
  • G.K. filed direct

The right specialists, in place

Notary, tax, and accounting partners we have vetted and worked with, coordinated for you, so the process moves and nothing gets missed.

  • Vetted specialists
  • Coordinated for you
  • Nothing gets missed

We plan for both tax layers, not just the first

National corporate tax is only the headline number. We help you plan for the National Local Corporate Tax, prefecture-set enterprise tax, corporate inhabitant tax, and the new FY2026 Special Defense Corporate Tax that sit on top of it, so the real cost of running your own K.K. or G.K. is never a surprise.

  • Full tax stack mapped
  • FY2026 changes covered
  • No surprise liabilities

We run it after you form it

Incorporation is the start, not the finish. We stay on for accounting, payroll, tax filings, and annual accounts, so your K.K. operates from day one without you building a local finance function.

  • Full back office
  • Accounting & payroll
  • Annual accounts

The incorporation trap nobody flags

A growing business hits a good quarter and someone says, let us just set up a proper Japanese company. It sounds responsible. It usually is not, yet. Here is what people expect against what happens in practice.

Employment & payroll obligations

Expectation: it takes a few weeks and is just admin. Reality: a G.K. can move quickly since its articles go straight to the Legal Affairs Bureau, but a K.K. needs its articles notarised first. Either way, you need a registered Japanese office, National Tax Agency registration, and enrolment in the four-branch social insurance system before you can legally employ anyone.

Tax, filing & reporting obligations

Expectation: we can always reverse it. Reality: dissolving a company needs a shareholder resolution, liquidator appointment, and a statutory creditor notice period. And once it exists, the obligations do not stop: annual financial statements, monthly payroll filings, and corporate tax, National Local Corporate Tax, enterprise tax, and consumption tax returns all fall due on their own schedules. None of this is a reason not to incorporate. It is a reason to do it at the right time, with the right partners already in place.

What we handle for your company

Beyond incorporation, we can run the full back office for your company.

Compliant payroll

Compliant Japanese payroll and employment administration, issued and maintained for you.

Payroll & filings

Monthly payroll run, with national income tax, the Reconstruction surtax, local inhabitant tax, and the four-branch social insurance stack calculated, withheld, and filed each month.

Statutory benefits

All statutory benefits administered: annual leave, sick pay, parental leave, notice and severance.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on incorporating and running a company in Japan.

How long does it take to incorporate in Japan?

It depends on the vehicle. A G.K.’s articles go straight to the Legal Affairs Bureau; a K.K.’s must be notarised first, which adds a step and a notary fee. Either way, once documents, capital, and the registered address are in place, registration typically completes within a matter of weeks. You cannot legally employ anyone until it does, which is why timing matters and why many companies bridge with an EOR first.

Statutorily, just JPY 1 for either vehicle, a legacy of the 2006 Companies Act reform. In practice, most clients fund JPY 500,000 to JPY 3,000,000 for banking and credibility, and JPY 5 million if the entity wants to sponsor its own Business Manager visa (an immigration threshold, not a Companies Act minimum). The real cost is the registration license tax and, for a K.K., the notary fee, plus the ongoing accounting and compliance, which we can run for you.

Yes. Since a 2015 policy change, Japan has no residency or nationality requirement for company officers: a non-resident, non-citizen individual can be sole shareholder and sole director of either a K.K. or a G.K., managing remotely. You will need a registered Japanese office, which we arrange.

Incorporate when you have permanent, proven headcount and want full control, and the per-head savings justify the ongoing costs. Use EOR while you are still validating the market or need people working quickly. Most companies start with EOR and incorporate later. We advise on the crossover.

Accounting, monthly payroll (national income tax, the Reconstruction surtax, local inhabitant tax, and the four-branch social insurance stack), corporate tax, National Local Corporate Tax, enterprise tax, and consumption tax filings, and annual financial statements. We can run all of it so the entity stays compliant without you building a local finance function.

Yes, and it is how most companies use us. Beyond incorporation we provide ongoing accounting, payroll, and compliance, so your Japanese company operates smoothly from day one without hiring locally for back office.

Ready to form your company in Japan?

Tell us your plans for Japan and we will tell you honestly whether now is the time to incorporate, and which vehicle fits, then handle it end to end if it is, usually scoped within a day. No formation-mill upsell, just the right call.

Tax, company, and labour data verified July 2026 (Legal Affairs Bureau, National Tax Agency, Japan Federation of Notaries Public, PwC). Figures change; we confirm the current position when we scope your formation.