Company Formation Japan
Incorporating a company in Japan offers a range of strategic advantages that support long-term growth, credibility, and global competitiveness. As the world’s third-largest economy, Japan provides access to a large, affluent consumer base with strong purchasing power and robust demand across sectors including technology, healthcare, retail, and services.
The country’s stable political and legal framework, coupled with robust intellectual property protections, ensures a predictable environment for investment, safeguarding shareholder rights, innovations, and contractual obligations. Japan’s advanced infrastructure, efficient logistics networks, and highly skilled workforce further enhance operational efficiency and innovation capacity, enabling companies to compete effectively in both domestic and international markets.
Additionally, Japan offers favorable tax incentives, a network of double taxation treaties with over 90 countries, and targeted government support programs, including R&D tax credits, special economic zones, and subsidies, all of which can improve cost efficiency and profitability. Strategically located within the Asia-Pacific region and participating in key trade agreements such as the CPTPP and the EU–Japan Economic Partnership Agreement, Japan provides incorporated companies with enhanced market access and a competitive position for regional and global trade.
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Japan LLC Overview & Key Requirements
The Company is to be registered under Legal Affairs Bureau (法務局 / Hōmu-kyoku), which is part of the Ministry of Justice (法務省 / Hōmu-shō).
There are a number of types of companies to register in the Japan, where the most common type of company is the Godo Kaisha, which is Limited Liability Company (LLC). The GK is simpler (similar in some respects to an LLC) and may be used for smaller or start-up operations.
The following are the features of Limited Liability Company (LLC) formation in Japan:| Service | Company registration |
|---|---|
| Type of company | (GK) Godo Kaisha |
| Corporate Tax | For all and Medium-Sized GKs (taxable income ≤ 8 million JPY): 15% on the first 8 million JPY. For Companies with Income above 8 million JPY: 23.2% |
| Director/ Members | While having a Japan-resident director is not required, we suggest at least 1 Local Director/executive member (we can assist in that). Bank account opening and authorities/Lessors are much flexible if at least one member/director is local. |
| Secretary | Not Required |
| Shareholders | At least 1 Shareholder, not required to be Local |
| Share Capital | No Legal Minimum Capital, but for credibility and bank: usually at least ¥500,000 – ¥2,000,000 is recommended (and for visa purposes: usually 5,000,000 yen) |
| Registered office / Registered address | Required locally. (P.O. Box not acceptable) |
| Bookkeeping | Yes, obligatory |
| Audit of Financial Statements | Not required |
| Registration Timeframe | Approximately 2-4 months. |
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