Starting a small company in Japan

KK vs. GK

Foreigners can own 100% of a Japanese company - there's no nationality restriction in the Companies Act. The two practical choices:

• Kabushiki Kaisha (KK) - Japan's standard corporate structure, in use since 1873, and the one most recognized by Japanese clients, banks, and partners. Costs around ¥250,000 to register and takes about 4 weeks. Your Articles of Incorporation need notary approval before filing.
• Godo Kaisha (GK) - introduced in 2006, modeled on the US LLC. Same limited liability as a KK, simpler governance, lower cost (around ¥100,000) and faster (2-3 weeks) - no notary check required. The trade-off is that some larger Japanese counterparties still see a GK as less prestigious than a KK.

What every company needs at registration

• Articles of Incorporation, in Japanese.
• A registered office address - a virtual office is acceptable for the company itself, though not for the Business Manager visa (see below).
• Filing with the Ministry of Justice's Legal Affairs Bureau.

If you'll be the visa-sponsored manager

Running the company as your basis for staying in Japan means meeting Business Manager visa requirements separately from the company registration itself: real capital investment (the threshold has been rising - confirm the current figure before budgeting), at least one full-time Japanese employee, a physical (non-virtual) office, and JLPT N2-level Japanese.

Practical checklist

• Decide KK vs. GK based on who you're selling to, not just cost - some industries and counterparties still expect a KK.
• Line up your registered office address before you start the paperwork; you can't file without one.
• If you need the company for your own visa, check the Business Manager visa requirements before you finalize the company structure, not after.

Sourced in part from Venture Japan's GK incorporation guide.