The one-page answer
The cost of starting a business in Japan splits into two very different numbers: what you pay once to create the company, and what you pay every year to keep it compliant. Most founders budget carefully for the first and are surprised by the second.
Here is the one-off side, comparing the two structures foreign founders actually choose. Figures are typical Tokyo ranges as of November 2026 and exclude share capital.
| Cost item | 合同会社 (GK) | 株式会社 (KK) |
|---|---|---|
| Registration & licence tax (登録免許税) | ¥60,000 minimum | ¥150,000 minimum |
| Articles of incorporation notarisation (定款認証) | Not required | ¥30,000–¥50,000 |
| Corporate seal set (法人印鑑・実印) | ¥10,000–¥30,000 | ¥10,000–¥30,000 |
| Registered business address, first year | ¥30,000–¥120,000 | ¥30,000–¥120,000 |
| Certified registry extract (登記簿謄本) | approx. ¥600 | approx. ¥600 |
| Typical total, excluding capital | ¥100,000–¥250,000 | ¥220,000–¥400,000 |
Why the registration tax differs so much between a GK and a KK
The registration and licence tax is charged at 0.7% of share capital, subject to a statutory minimum that depends on the structure: ¥150,000 for a 株式会社 and ¥60,000 for a 合同会社. That minimum is what almost every foreign-founded company actually pays, because founders typically incorporate with minimal capital.
In practice this means the 0.7% rate only becomes relevant above roughly ¥21.4 million of capital for a KK, or ¥8.6 million for a GK. Below those thresholds you are paying a flat fee, and the flat fee for a KK is two and a half times the GK figure.
This is the single largest structural saving available to a founder who does not need the KK label — which is why the [G.K. structure that Amazon, Google and Apple use in Japan](/guides/godo-kaisha-gk-why-amazon-google-apple) is worth understanding before you default to a KK because it sounds more familiar.
Notarisation: the step only KK founders pay for
A KK must have its articles of incorporation authenticated by a Japanese notary (定款認証) before filing. The fee scales with capital — roughly ¥30,000 at the low end and ¥50,000 above ¥3 million — and paper articles also attract a revenue stamp. A GK has no notarisation requirement at all: you draft the articles, file them, and that is the end of it.
Combine the two effects and the gap is structural, not incidental: a KK costs roughly ¥120,000–¥160,000 more than a GK before you have paid anyone for advice.
The running costs that surprise foreign founders
A Japanese company does not become cheap once it exists. The recurring obligations are the part of the budget that decides whether a Japan entity is viable for a solo founder testing the market.
| Item | Typical cost | Notes |
|---|---|---|
| Registered address | ¥3,000–¥10,000 / month | Virtual or shared office; must accept official mail |
| Bookkeeping & tax filing (税理士) | ¥30,000–¥50,000 / month | Lower if you prepare the books yourself |
| Minimum corporate tax (均等割) | approx. ¥70,000 / year | Tokyo; payable even with zero revenue |
| Corporate bank account | ¥0–¥2,000 / month | Account fees are small; the friction is the application |
| Social insurance | approx. 15% of salary | Only once you employ staff, including yourself as representative |
| Consumption tax filing | included above | Required once taxable sales exceed ¥10 million |
Four costs foreign founders routinely forget
First, the tax representative (納税管理人). If the company has no resident director, Japanese tax law requires appointing someone in Japan to handle filings — often a tax accountant, and often a recurring cost nobody quotes at the start.
Second, the bank account. The monetary cost is close to zero; the cost is time and preparation. Banks want a business plan, a credible registered address, and usually a meeting, and a DIY incorporation that skips this step can sit dormant for months. We cover the mechanics in the [business setup guide](/guides/start-a-business-in-japan).
Third, translation and certification. Foreign corporate documents, powers of attorney and personal identification usually need certified Japanese translations, and notarised apostilles from the issuing country.
Fourth, the annual filing calendar. Corporate tax, consumption tax, local tax, and — if you employ anyone — payroll and social insurance filings. Missing them is expensive in a way that the original ¥200,000 of setup costs never is.
What changes if you need a visa rather than just a company
A company and a visa are separate questions. You can own a Japanese company without any status of residence. But if you intend to live in Japan and manage it, you need a Business Manager visa (経営・管理), and that changes the budget completely.
The visa route requires either ¥5,000,000 of genuinely contributed capital or two full-time employees resident in Japan, plus a business plan reviewed by the Immigration Services Agency and premises that support the business. The capital is not a fee — it stays in the company — but it has to be there, documented, at the point of application.
The October 2026 changes to this route are summarised in [our note on the Business Manager visa](/guides/business-manager-visa-japan-changes); the practical takeaway is that capital and staffing thresholds are being read more strictly, not less.
Where our fixed-fee pricing sits
Company Incorporation (Registration Only) is $500. It covers the legal filing and corporate registry submission — the right choice if you already have a registered address and a banking relationship, and need the formation handled correctly and in Japanese.
Incorporation & Full Business Setup is $5,000 and covers the whole sequence: structure advice, articles, registry filing, banking preparation and coordination, and the operational setup that follows registration — coordinated end to end by a licensed Judicial Scrivener. Against the numbers above, the difference between the two is usually the difference between a company that exists and a company that can actually open a bank account and trade.
Frequently asked questions
Can I start a company in Japan for under ¥100,000?
Only marginally, and only for a GK. The statutory floor for a GK is the ¥60,000 registration and licence tax plus a corporate seal set, so a founder with an address already arranged can approach ¥100,000. A KK cannot be established that cheaply, because the ¥150,000 registration tax and ¥30,000–¥50,000 notarisation fee are unavoidable.
Is the ¥5,000,000 capital requirement for a Business Manager visa a fee?
No. It is capital, not a cost — the money is contributed to the company and remains a company asset that you can spend on the business. What you cannot do is borrow it temporarily to satisfy the immigration review and withdraw it afterwards; the Immigration Services Agency expects the capital to be genuinely available and evidenced.
How much does it cost to maintain a Japanese company each year?
Budget ¥150,000–¥400,000 per year for a small, non-employing company: registered address (¥36,000–¥120,000), tax accountant and bookkeeping (¥360,000–¥600,000 if fully outsourced, less if you prepare the books yourself), and the minimum corporate tax of roughly ¥70,000 (均等割) in Tokyo.
Are incorporation costs tax deductible?
Generally no — costs of establishing the company itself (registration tax, notarisation, seal) are treated as capital expenditure and are not deductible in the first year. Ongoing operating costs such as the registered address, accounting fees and bank charges are deductible business expenses.
Is it cheaper to buy an existing Japanese company instead of incorporating one?
Sometimes, but rarely for a first Japan entry. A dormant shelf company avoids the registration tax and can be transferred in a few weeks, but it carries historical liabilities, an existing fiscal year, and possible unfiled obligations. The due diligence needed to make that safe frequently costs more than the ¥220,000–¥400,000 you save.