Good to know
Good to Know
- There is no legal requirement for a local Japanese co-founder, shareholder, or sponsor to incorporate — 100% foreign ownership is standard and unrestricted for a KK or GK.
- The much bigger hurdle than incorporation itself is the Business Manager visa: as of October 16, 2025 it requires 30 million JPY in capital (up sixfold from 5 million JPY), a full-time employee in Japan, and a real physical office — plan capitalization early if you intend to live in Japan and run the company yourself.
- Fukuoka's Startup Visa is specifically designed to let you incorporate and operate in Fukuoka for up to two years before you need to hit those full Business Manager thresholds — start with Fukuoka's free Startup Café/GBS consultation rather than going it alone.
- A Godo Kaisha (GK, Japan's LLC-equivalent) is markedly cheaper and faster to register than a Kabushiki Kaisha (KK) and is legally just as valid for visa purposes — worth considering unless you specifically need KK prestige for investors or big Japanese clients.
- Even though a Japan-resident director is no longer legally required, banks, landlords, and many local clients still expect to deal with someone physically present in Japan, so budget time/relationship-building for this in practice.
- Starting as a sole proprietor (kojin jigyo) and converting to a company later is common and legally straightforward in Japan — many founders in Fukuoka begin this way to avoid company-level bookkeeping and corporate tax filings while the business is still small.
- Filing for 'Blue Form' (aoiro) tax status within 60 days of starting a company is a small piece of paperwork that unlocks a longer filing deadline and loss carry-forward — worth doing immediately rather than treating as optional.
- Fukuoka's 'Startup Corporate Tax Reduction' (up to 5 years exemption from national corporate tax and city corporate tax) is real but targeted — it's tied to the city's Startup Visa / National Strategic Special Zone programs and specific sectors (medical, certain IoT, advanced IT), not a blanket break for any foreign-owned business.
- A new national defense-related corporate surtax takes effect for fiscal years starting on or after April 1, 2026, so a company's effective tax rate is likely to tick up slightly regardless of location.
- Regardless of structure, once annual revenue crosses roughly ¥10 million, consumption tax (VAT-equivalent, 10%) registration and filing becomes mandatory — factor this into pricing and invoicing well before you hit that threshold.
Structure Comparison
- Practical Note For Foreigners
- Foreigners can own 100% of a Japanese company (KK or GK) with no nationality restriction and, since March 2015, no requirement for a Japan-resident director to register it — but in practice opening a Japanese corporate bank account and handling day-to-day tax/administrative correspondence is significantly easier with at least one Japan-resident director or a local professional (judicial scrivener/tax accountant) involved.
Godo Kaisha Gk
- Taxation
- Subject to the same corporate tax regime described above (national + local corporate taxes) once it earns revenue — a GK gets no special lower tax rate purely for being a GK, but many foreign owners find it cheaper and less administratively heavy to run.
- Governance
- GKs don't need formal shareholder meetings or a board of directors, which means fewer ongoing compliance burdens than a KK.
- What It Is
- Japan's equivalent of an LLC, introduced in 2006, emphasizing simplicity and flexibility.
- Who It Suits
- Small foreign-owned subsidiaries and sole-founder companies that want liability protection without KK-level formality; notably several major American technology companies operate their Japanese subsidiaries as Godo Kaisha, including Apple Japan, Amazon Japan, and Google Japan.
- Registration Cost
- ¥60,000
Minimum registration tax if capital is under ¥21 million; no notary/Articles-notarization fee is required for a GK, unlike a KK.
Kabushiki Kaisha Kk
- Taxation
- Same corporate tax regime as a GK — choice of KK vs GK does not change the tax rate itself, only setup cost, governance formality, and outside perception.
- What It Is
- The traditional joint-stock corporation, analogous to a 'Co., Ltd.', and the most common form for businesses in Japan.
- Who It Suits
- Founders needing credibility with Japanese banks/clients, planning to raise investment, issue shares, or eventually hire at scale; a KK can be incorporated with a single director and one shareholder, so a solo foreign founder can fully own one.
- Registration Cost
- ¥250,000
Approximate combined registration tax + notarization cost for a standard small KK; registration tax alone has a minimum of ¥150,000 for capital under ¥21 million, plus notary attestation of the Articles of Incorporation costing approximately ¥52,000.
Sole Proprietorship Kojin Jigyo
- Taxation
- Business profit is taxed as the owner's personal income (progressive income tax bands) plus a flat local inhabitant tax and, above a threshold, a separate individual enterprise tax on business income — there is no distinct 'corporate tax' filing at all, only the individual's own annual tax return.
- What It Is
- The sole proprietorship in Japan, known as kojin jigyo (個人事業), is the simplest legal way for an individual to operate a business without forming a corporation.
- Registration
- Filed via a one-page Declaration of Commencement of Business (kaigyo todoke) to the local tax office — no minimum capital, no notarization, and generally no registration fee.
- Who It Suits
- Sole proprietors commonly operate freelance or small service businesses—IT consulting, writing, translation, e-commerce, teaching, content creation, etc.
- Visa Dependency
- Operating one legally still requires holding a visa status that permits self-employment (e.g. Business Manager visa, spouse/long-term resident, or PR) — a tourist or plain work visa tied to an employer does not permit it.
- Liability And Credibility
- The owner is personally liable for all business debts, and the business has no separate legal identity, so it cannot hold a bank account, sign a lease, or contract purely in the business's own name.
Corporate Tax Overview
- Effective Rate Note
- The effective Japanese corporate income tax rate (the total of the taxes listed above) is presently 34.6% for companies with paid-in capital of JPY100,000,000 or less
- Summary
- Japanese corporate tax is layered: national corporate tax, local corporate tax, corporate inhabitant tax, enterprise tax, and special corporate business tax combine into one effective rate. This applies identically to a foreign-owned KK or GK registered in Fukuoka as to a Japanese-owned one — there is no separate 'foreigner' corporate tax regime.
- 2026 Change
- A new special corporate tax to strengthen defence capabilities will apply for fiscal years beginning on or after 1 April 2026, calculated as 4 percent of the standard corporate tax amount, with a basic deduction of 5 million JPY
- Worldwide Income Note
- These domestic corporations are treated as Japanese resident corporations and are generally taxed on their worldwide income, not only income generated in Japan.
Tax Components
- National corporate tax
- Local corporate tax (national tax)
- Corporate inhabitant tax (local tax, has both an income-based portion and a flat per-capita portion based on capital and employee count)
- Enterprise tax (local tax)
- Special corporate business tax (national tax, but filed together with enterprise tax to the local government)
Filing Obligations
- Blue Form Status
- A company or branch-office which files its notification of establishment to the National Tax Agency within sixty days of establishment receives 'Blue Form' status, which extends the filing date for its annual tax-returns to sixty days after its financial year-end (it's 30 days as standard) and unlocks loss carry-forward and other deductions — worth doing immediately on incorporation.
- Standard Deadline
- Corporate tax return due within 2 months of fiscal year-end as standard.
- Quarterly Payments
- Quarterly corporate tax payments are required for ongoing operations, not just an annual lump filing.
- Shell Company Warning
- A Japanese company structured as a cost-center, with no revenue other than funds transferred from its non-resident foreign parent, will be subject to a corporate income tax charge based on a notional profit calculated as 5% of its total expenses — relevant if a foreign owner tries to run a pure cost-center subsidiary out of Fukuoka rather than a revenue-generating local entity.
Consumption Tax VAT
- Rate
- 10% standard (8% reduced rate for some food/drink items)
- Registration Threshold
- ¥10,000,000
Businesses must register for consumption tax if annual revenue exceeds this threshold; below it a small new company/sole proprietor can usually operate exempt for the first year or two.
Entity Types
Kabushiki Kaisha (KK)
- Notarization Required
- Yes
- Typical Registration Cost
- ¥225,000
Government registration/license tax plus notary certification of Articles of Incorporation; ranges roughly 200,000–250,000 JPY (registration tax minimum 150,000 JPY or 0.7% of capital, whichever is higher, plus 30,000–50,000 JPY notary fee).
- Description
- Japan's standard joint-stock corporation, the most recognized and prestigious structure, required if planning to raise outside investment, issue shares, or eventually list.
Godo Kaisha (GK)
- Notarization Required
- No
- Typical Registration Cost
- ¥80,000
Ranges roughly 60,000–100,000 JPY registration/license tax (minimum 60,000 JPY or 0.7% of capital, whichever is higher); no notary fee.
- Description
- Japan's LLC-equivalent — flexible, cheaper, no notarization needed; common for smaller foreign-owned setups and SMEs.
Professional Service Fees
- Note
- Judicial/administrative scrivener and legal fees for handling filings, seals, and bilingual documentation; most foreign founders use these services rather than filing solo.
GK Bilingual Support
- Amount USD Low
- 207
- Currency Local
- JPY
- Amount USD High
- 2069
- Amount Local Low
- 30000
- Amount Local High
- 300000
KK Bilingual Support
- Amount USD Low
- 690
- Currency Local
- JPY
- Amount USD High
- 4138
- Amount Local Low
- 100000
- Amount Local High
- 600000
Fukuoka Startup Visa Pathway
- Duration
- Initially granted for up to one year, extendable to a maximum of two years, during which you must attend a monthly progress interview with Fukuoka City or GBS.
- Transition
- If you meet Business Manager visa requirements before the Startup Visa period ends, you apply for a status change to the Business Manager visa at the Fukuoka Regional Immigration Services Bureau.
- Why It Matters
- Fukuoka was Japan's first city to launch a Startup Visa program, and remains one of the most developed, under the National Strategic Special Zone framework — letting founders incorporate and prepare a business in Fukuoka before meeting the full Business Manager visa thresholds above.
- Local Tax Incentive
- Fukuoka's 'Startup Corporate Tax Reduction' can exempt qualifying innovative businesses (targeting sectors like medical and advanced IT) from national and city corporate tax for up to five years.
- Requirement During Period
- You must secure an office, establish a company, and work toward hiring employees during this window; time spent counts toward the management-experience requirement for the eventual Business Manager visa.
Cost
- Startup Cafe Consultation
- Free — includes concierge advice and Thursday sessions with lawyers and tax accountants.
- Immigration Application Fee
- ¥4,000
City Application Fee
- Amount USD Low
- 0
- Currency Local
- JPY
- Amount USD High
- 345
- Amount Local Low
- 0
- Amount Local High
- 50000
How It Works
- Consult Global Business Support (GBS) / Startup Café — Fukuoka's free one-stop support center for foreign entrepreneurs — before applying.
- Submit a business plan (New Business Implementation Plan / NBIP) to Fukuoka City.
- Fukuoka City reviews the plan, consulting outside experts such as certified SME management consultants.
- If approved, Fukuoka City issues a 'Certificate of Confirmation of Business Startup Activities.'
- Apply for a Certificate of Eligibility (COE) with the Immigration Services Agency within the certificate's validity window.
- Apply for the 'Designated Activities' Startup Visa status at the Fukuoka Regional Immigration Services Bureau, or change status if already in Japan.
Fukuoka Specific Incentives
- National Strategic Special Zone
- Fukuoka holds a National Strategic Special Zone designation, which has led to reduced regulations when it comes to employment, visas, and corporate taxes for qualifying startups.
- Startup Corporate Tax Reduction
- Fukuoka City has implemented a 'Startup Corporate Tax Reduction' system whereby companies pursuing innovative businesses that bring new values as well as economic and social changes are exempt from corporate tax (national tax) and corporate municipal tax (city tax), with the exemption lasting for up to five years; the target sectors are the medical sector, certain IoT, and advanced IT (the latter exempt from city tax only).
- Caveat
- This incentive is aimed at genuinely innovative/tech-sector startups going through Fukuoka's official Startup Visa / Business Manager visa pathway, not at every freelancer or small foreign-owned shop — eligibility is assessed by the city, not automatic.
- Startup Cafe Support
- The city-run Startup Café provides free consultations, and lawyers and tax accountants are available on Thursdays to provide consultations on matters related to founding a business — useful for a foreign founder trying to understand local filing obligations before committing to a structure.
Japan places no nationality restriction on company founders. A foreigner can own 100% of a Japanese company and there is no legal requirement for a local Japanese partner, co-shareholder, or sponsor to incorporate. Since 2015, at least one representative director is required but that director no longer needs a Japan residential address, though banks and landlords in practice still often expect a locally contactable representative.
Core Incorporation Steps
Core Incorporation Steps
- Decide company type (KK or GK), name, registered address, business purpose, and capital amount.
- Draft the Articles of Incorporation (typically in Japanese) and prepare a company seal.
- For a KK only: certify the Articles at a notary public (1 day plus appointment wait).
- Open a temporary bank account in the company's name and deposit the capital.
- File registration with the Legal Affairs Bureau (法務局, Hōmukyoku) — the Ministry of Justice body that maintains Japan's commercial registry.
- Receive the 13-digit Corporate Number (法人番号), issued automatically after registration.
- Register for tax, social insurance, and (if hiring) labor/pension filings.
Business Manager Visa Context
- Other Requirements
- At least one full-time employee in Japan, a genuine physical office (virtual offices alone are no longer sufficient), and either 3+ years of management experience or a relevant Master's degree, plus a business plan vetted by a certified expert.
- Capital Requirement
- ¥30,000,000
Increased from 5,000,000 JPY effective October 16, 2025 — a sixfold jump. Existing visa holders have until October 2028 to meet the new threshold.
- Description
- This is the standard visa route for a foreigner to live in Japan and personally run a company. As of October 16, 2025 the requirements tightened significantly.
Typical Registration Timeline
- GK
- About 1–2 weeks for the registry filing itself
- KK
- About 2–3 weeks for the registry filing itself, longer than GK because of the notarization step
- Full Practical Timeline Incl Bank And Office
- 4–8 weeks realistic end-to-end for a foreign founder once bank account setup, office lease, and documentation gathering are included
Official Registry And Program Links
- Meti Startup Visa Program
- https://www.meti.go.jp/english/policy/economy/startup_nbp/startup_visa.html
- Jetro Cost Estimation Page
- https://www.jetro.go.jp/en/invest/setting_up/modelcase.html
- Fukuoka City Startup Visa Page
- https://www.city.fukuoka.lg.jp/keizai/r-support/business/startupviza_english.html
- Legal Affairs Bureau Company Registration
- Handled by Japan's Ministry of Justice through the local Legal Affairs Bureau (法務局) — this is the body where Articles of Incorporation are filed.
Local Partner Or Sponsor Requirement
None required by law to incorporate the entity itself. However, to personally live in Japan and manage the company you need a residence status (most commonly the 'Business Manager' visa, or Fukuoka's Startup Visa as a stepping stone) — this is a visa/immigration requirement, not a company-law requirement for a local partner.
Minimum Capital For Incorporation Itself
Legally as low as 1 JPY under the Companies Act — there is no statutory minimum capital just to form a KK or GK.
AI-generated estimateData refreshed July 2026
Sources cited for this category
These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.
More About Fukuoka
Data last updated July 2026 · Verify anything important.