Japanese Tax Blog in English

日本の税務情報を英語で書くブログ by みなと国際会計事務所

Incorporation of a Company in Japan

time 2019/06/03

It is easy to set up a company in Japan. There is no capital requirement. There is no residency requirement for a director. You can set up a company with only directors who are non-resident of Japan.

There are two types of company. One is called KK (Kabushiki Kaisha) and another is called GK (Godo Kaisha). A KK is a full-fledged corporation with standard corporate features such as shares, shareholders, directors, limited liabilities.

GK is a hybrid of a company and a partnership. Internally, it works as a partnership. But externally it works as a limited liability corporation where partners are segregated from the company’s liabilities.


KK is more expensive than setting up a GK. A KK requires a notarized article of incorporation that costs 50,000 yen plus the higher registration tax of 150,000 yen.

A GK is cheaper to set up. You don’t need to have your article of incorporation notarized by Notary Public. The registration tax is only 60,000 yen.

Fiscal year

You are free to set your fiscal year. It can start which ever month you would like but it has to be one year or less. December 31st and March 31st are the most popular days for its fiscal year end but because your accountant will be very busy at the months to give you enough time for a tax consultation at the end of the year when it is most required. It is recommended to choose April, May, July, Aug or Sep as your fiscal year end so that they will have enough time and mental resources to give you required attention to take care of your accounting and improve your tax efficiency.

Bank account

This one can be a problem if you do not have an existing business. Japanese banks are regulated very tightly by the government and the Anti-Money Laundering regulation is one of their focus.


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