Company Registration in Japan for Non-Japanese Citizens: What You Must Know

Japan is one of the world’s largest and most technologically advanced economies, making it an attractive destination for foreign entrepreneurs and investors. Whether you're launching a tech startup, opening a trading company, or expanding your global operations, understanding the process of company registration in Japan is crucial—especially if you're not a Japanese citizen.

While Japan is open to foreign investment, it has strict legal and administrative procedures. This guide explains what non-Japanese citizens need to know to register a company in Japan, from selecting a business entity to securing the right visa.

Why Japan?

Foreign entrepreneurs are increasingly interested in opening a company in Japan because of:

• Access to one of the most stable and mature markets in Asia

• A highly educated and tech-savvy population

• Strong protection of intellectual property rights

• Strategic location for doing business across Asia-Pacific

• Government incentives for foreign direct investment

However, Japan also has a reputation for bureaucratic complexity and conservative business culture. To succeed, foreign entrepreneurs must carefully plan their entry and understand local legal structures.

Can Foreigners Register a Company in Japan?

Yes, non-Japanese citizens and foreign companies can register a company in Japan. There are no nationality or residency restrictions for company ownership. However, there are requirements that affect company directors, office presence, and visa eligibility—especially if the founder does not already reside in Japan.

You don’t need to be a resident of Japan to register a company, but if you want to live and run the business on-site, you’ll need the appropriate visa, such as a Business Manager Visa.

Step 1: Choose the Right Business Entity

Japan offers several types of legal business structures, but the most common for foreign entrepreneurs are:

1. Kabushiki Kaisha (KK) – Joint Stock Company

• The most recognized and trusted form in Japan

• Ideal for larger companies or those planning to scale or raise capital

• Requires more formal governance and reporting

Pros:

• Good public image

• Easier to work with Japanese partners

• Ideal for long-term operations

Cons:

• More complicated and expensive to establish

• Requires statutory auditors if capital or revenue exceeds certain limits

2. Godo Kaisha (GK) – Limited Liability Company

• Similar to an LLC in the U.S.

• Simpler and cheaper to set up than a KK

• Increasingly popular among startups and foreign-owned businesses

Pros:

• Flexible management structure

• Less administrative burden

• Fully foreign-owned GKs are common

Cons:

• Perceived as less prestigious than a KK (though this perception is fading)

Recommendation: If you’re new to Japan and want to start small, GK is usually the best structure. If you aim for long-term growth or funding, KK might be better.

Also Read: How to Register NBFC with RBI?

Step 2: Appoint a Director and Decide Shareholders

• GK: Can be set up with a single member who acts as both owner and manager

• KK: Requires at least one director (who can be non-resident)

Important note: You no longer need a Japan-resident director to register a company. This change in law (since 2015) allows companies to be fully foreign-owned and directed.

However, if you’re applying for a Business Manager Visa, immigration authorities will expect you to have a physical office and be actively involved in managing the business from Japan.

Step 3: Secure a Physical Office Address in Japan

You must provide a real, physical address in Japan for your business during company registration. Virtual offices are sometimes accepted, but many types of visas and banks will not approve your setup if your office is purely virtual.

Your registered address will appear on your official company documents, so it must be valid, rented legally, and available for inspection if necessary.

Step 4: Prepare Company Documents

To proceed with company registration in Japan, you need the following core documents:

• Articles of Incorporation (in Japanese)

• Proof of capital deposit (bank statement or certificate)

• Shareholder and director details

• Personal seal (inkan) and company seal (registered)

• Office lease agreement

While it’s not mandatory to use a lawyer or judicial scrivener (shihō-shoshi), many foreigners prefer to do so to ensure everything complies with Japanese law.

Step 5: Deposit the Capital

Japan does not set a minimum capital requirement to register a company, but if you’re applying for a Business Manager Visa, the immigration office expects at least ¥5 million (~USD 35,000) in paid-in capital.

The capital must be deposited into a Japanese bank account under the name of a shareholder or representative director, and proof of deposit must be submitted during incorporation.

Also Read: Step-by-Step Procedure for SEBI AIF Registration

Step 6: Register the Company

Submit the required documents to the Legal Affairs Bureau (法務局) in the jurisdiction of your office address. This is the official company registration authority in Japan.

Once submitted and approved, you’ll receive a Certificate of Registered Matters (登記簿謄本) and a Company Seal Registration Certificate (印鑑証明書).

Processing time is usually 1–2 weeks after submission.

Step 7: Post-Registration Tasks

Once your company is legally established, you must complete the following steps:

1. Notify the Tax Office within 2 months of registration

2. Enroll in social and labor insurance if hiring staff

3. Apply for the Business Manager Visa, if you plan to live and run your business in Japan

4. Open a corporate bank account

5. Register for consumption tax (if applicable)

Visa Requirement: Business Manager Visa

If you plan to live in Japan and manage the business yourself, you’ll need a Business Manager Visa.

Key Requirements:

• A physical office in Japan

• Investment capital of at least ¥5 million

• A solid business plan

• Company registration completed

• Proof that you will actively run the company

This visa is renewable and can eventually lead to long-term residency.

Tip: You can first come to Japan on a Temporary Visitor Visa, set up your company, and then apply for the Business Manager Visa with the documents from your new company.

Also Read: Benefits of Non-Banking Financial Company Takeover

Challenges for Foreign Entrepreneurs

While Japan is supportive of foreign investment, expect a few hurdles:

• Most company documents and processes are in Japanese only

• Opening a business bank account can be difficult without residency

• Getting approval for the Business Manager Visa requires strict documentation

• Business culture and etiquette can differ significantly from Western norms

Partnering with a local consultant or bilingual legal professional is highly recommended.

Estimated Costs

You can reduce costs by using a Godo Kaisha (GK) structure, choosing a smaller city, or working with a bundled incorporation + visa service.

Final Thoughts

Company registration in Japan is fully open to foreign entrepreneurs—but it’s not plug-and-play. From choosing the right entity to securing a visa and complying with local laws, every step needs careful planning.

If you're serious about opening a company in Japan, here are a few final tips:

• Choose GK for flexibility or KK for reputation

• Secure a real address and prepare a clear business plan

• Work with a local expert to avoid legal errors

• Don’t underestimate the paperwork, especially if applying for a visa

With proper preparation, Japan offers a wealth of opportunity, especially in tech, e-commerce, consulting, and import/export sectors. Take your time, build the right foundation, and you’ll be well-positioned for long-term success in the Japanese market.