Company Registration in Japan: Process, Documents Required & Benefits

Japan has one of the world’s strongest economies and is home to many global corporations, making it an attractive market for entrepreneurs and foreign investors. With cutting-edge technology, robust infrastructure, and a highly skilled workforce, Japan continues to strengthen its position in the global market.

As of 2025, Japan ranks as the third-largest economy in the world, behind only the United States and China. The country’s GDP is driven by key sectors such as manufacturing, real estate, insurance, finance, technology, and tourism. With an unemployment rate consistently below 3%, Japan proves itself to be a stable and promising environment for business incorporation.

Major commercial hubs like Tokyo, Osaka, and Yokohama serve as the backbone of the economy, attracting both domestic and international companies. To further support business expansion, the Japanese government offers tax incentives, subsidies, and investor-friendly regulations that make Japan a safe and rewarding destination for company registration.

In this guide, we’ll cover the reasons to register a company in Japan, procedures, documents, eligibility, costs, taxes, and benefits — updated for 2025.

Why Register a Company in Japan?

There are several reasons why international entrepreneurs and investors choose to incorporate in Japan:

• Stable legal and regulatory system that protects both domestic and foreign investors.
• Highly skilled workforce, with an unemployment rate under 3%.
• Strategic trade partnerships — Japan has numerous free trade agreements (FTAs), making global trade easier.
• Gateway to Asia — strong cultural and economic ties with Asian markets.
• Safe and stable environment thanks to Japan’s political and social stability.

Eligibility for Japan Company Registration

For Japan company registration, the following eligibility requirements must be met:

• The firm should possess a minimum of one representative director who is a citizen of Japan.
• The firm should possess a minimum of one shareholder.
• The firm should possess a registered office address in Japan.
• The firm should possess a registered capital of at least JPY 1 million (approximately USD 9,000), although this amount can be paid in after the registration process is complete.
• The firm should possess a unique company name that is not already in use by another registered company in Japan.
• The firm should possess a minimum of one corporate auditor if it has more than 50 shareholders or if the company’s capital exceeds JPY 100 million.

In addition to these requirements, the company must also file certain documents, such as articles of incorporation, a list of directors and shareholders, and a certificate of registered office, with the relevant government office.

Documents Required for Company Registration in Japan

Common documents for company formation in Japan include:

• Application for company registration
• Articles of Incorporation
• List of directors/shareholders with addresses
• Proof of registration fee payment
• Corporate seal (inkan)
• Certificate of registered office address
• Capital verification documents (bank statement or equivalent)
• Tax certificate from the local tax office

Procedure for Japan Company Registration

The process for Japan company registration includes the following steps:

Step 1:- Choose a company name and have it approved by the Legal Affairs Bureau.

Step 2:- Prepare the necessary documents, including the articles of incorporation and the list of directors and shareholders.

Step 3:- Submit the documents to the Legal Affairs Bureau and pay the registration fee.

Step 4:- Obtain a seal (inkan or hanko) for the company.

Step 5:- Register the company with the relevant tax department and acquire a tax ID number.

Step 6:- Register the company with the local city hall and obtain a seal registration certificate.

Step 7:- Obtain the necessary licenses and permits to operate the business.

Step 8:- Register for social insurance and employee pension plans.

Looking to start a business in Japan from India? Read our latest blog on how you can set up a company in Japan as an Indian entrepreneur and schedule a meeting with our incorporation experts toay. 

Types of Business Entities For Company Registration in Japan

The most common types of business entities for company registration in Japan are:

1. Godo Kaisha (GK) or Limited Liability Company

This type of firm is identical to a limited liability company in different countries. It is owned by its shareholders, and the stakeholders are not accountable for the firm’s debts beyond their capital contributions. 

GKs are required to have at least one representative director and a minimum capital of JPY 1,000,000

2. Kabushiki Kaisha (KK) or Joint Stock Company

This is the most common type of company in Japan and is similar to a corporation in other countries. It has a distinct legal personality from its stakeholders and is accountable for its debts. 

KKs are required to have at least one representative director, one auditor, and a minimum capital of JPY 1,000,000.

3. Gomei Kaisha (GMK) or General Partnership

This type of company is owned by two or more individuals and all partners are personally liable for the company’s debts. GMKs do not have legal personalities and are not expected to possess the least capital.

4. Teikan Seiho Kaisha (TSK) or Limited Partnership 

This type of company is owned by two or more individuals, with one or more general partners who are personally liable for the company’s debts and one or more limited partners who are not. 

TSKs do not have a legal personality and are not expected to maintain the least amount of money.

5. Yugen Kaisha (YK) or Simple Partnership 

This type of company is similar to a general partnership but has a simpler registration process and lower registration fees. 

YKs do not have a legal personality and are not required to have a minimum capital.

Various Taxes on Japan Company Registration

Following company registration in Japan, the following taxes will typically apply:

• Corporate Income Tax: This is a tax on the profits earned by the company. The tax rate is typically around 20-30%.
• Consumption Tax: This is a value-added tax on goods and services consumed within Japan. The current rate is 10%.
• Property Tax: This is a tax on the value of the company’s real estate and equipment. The tax rate varies by municipality.
• Local Enterprise Tax: This is a tax on the company’s capital and net assets. The tax rate varies by municipality.
• Employment Insurance and Health Insurance Contributions: Employers are required to make contributions to these programs on behalf of their employees.

Cost to Register a Company in Japan

The cost to register a company in Japan will vary depending on the type of company, the number of shareholders, and the services used to assist in the registration process.

However, some of the common costs associated with company registration in Japan include:

• Legal fees: These are the fees charged by lawyers or other professionals for assistance in the registration process.
• Notary fees: These are the fees charged by a notary public for certifying documents used in the registration process.
• Government fees: These are the fees levied by the Japanese government for registering a company. These fees can include the cost of documenting articles of incorporation and the fee of registering the firm’s seal.
• Accounting fees: These are the fees charged by an accountant or other professional for assistance in setting up the company’s accounting system and filing tax returns.

Benefits of Opening a Company in Japan

1. Large, stable, high-income market

Japan is the third-largest economy worldwide, with high per-capita income, a mature consumption market, and considerable purchasing power.

2. Advanced infrastructure 

Japan boasts a highly developed physical and digital infrastructure (ports, airports, internet/telecoms, logistics).

3. Welcoming to foreign investment 

You can incorporate a company in Japan even as a foreigner; no Japanese citizen shareholder is legally strictly required. 

4. Tax benefits

Foreign‐source income may be eligible for credits to avoid double taxation.  Some special zones offer lower tax burdens and easier rules.

Conclusion

Registering a company in Japan in 2025 offers access to one of the world’s largest economies, a skilled workforce, and a stable business environment. While the process may seem complex, proper preparation and guidance can make the incorporation smooth and successful.

If you’re planning to set up a company in Japan, it’s essential to follow the right steps, comply with legal requirements, and get expert assistance.

Speak with the business incorporation experts at OnDemand International to ensure a hassle-free Japan company registration process.