# Starting a company in Japan as a foreigner: KK vs sole proprietor and the visa

URL: https://japanhow.com/work/freelance/start-company-japan-foreigners/
Author: JapanHow editors
Updated: Oct 29, 2026

## Summary

As of October 2026, a foreign resident in Japan can work as a sole proprietor if their visa allows, or form a company: a KK (joint-stock) or GK (LLC), both with limited liability. JETRO says registration starts around ¥250,000 plus ¥200,000 to ¥500,000 in professional fees, and setup typically takes about three months. Founders who need the Business Manager visa face ¥30 million capital, a full-time employee and B2-level Japanese since October 2025.

## Key facts

- Corporation registration: From about ¥250,000 (JETRO)
- Founder visa: Business Manager (経営・管理)
- Capital for that visa: ¥30 million since Oct 2025
- Typical setup time: About 3 months (JETRO)

To **start a company in Japan as a foreigner**, you choose between working as a **sole proprietor** and forming a **company**: a joint-stock company (株式会社, KK) or a limited liability company (合同会社, GK). As of October 2026, JETRO says corporation registration starts around **¥250,000** plus **¥200,000 to ¥500,000** in professional fees, and setup typically takes about **three months**. The visa is the harder part: the Business Manager (経営・管理) status has stricter rules since 16 October 2025.

**Informational only:** This page summarizes JETRO, immigration and tax agency pages. It is not legal or visa advice. For your case, ask an administrative scrivener (行政書士), a judicial scrivener (司法書士) or a tax accountant (税理士), and the immigration bureau for visa questions.

## Sole proprietor, GK or KK

| | Sole proprietor | GK (合同会社) | KK (株式会社) |
|---|---|---|---|
| Legal entity | No, you are the business | Yes | Yes |
| Owner liability | Personal | Limited to contribution | Limited to contribution |
| Registration | Opening notification to the tax office | Company registration | Company registration |
| Setup cost (JETRO) | Not covered | From about ¥250,000, plus professional fees | From about ¥250,000, plus professional fees |

JETRO states that both KK and GK limit liability to the assets owners contributed, and that a GK's articles allow more self-governance than a KK. It gives one registration figure for corporations and does not split GK from KK. Registration tax and notary costs by type are not covered by the pages we checked.

A **branch office** of a foreign company is not a separate legal entity: the parent remains ultimately responsible. JETRO puts branch registration at around ¥100,000. A representative office has limited activities and is not permitted to engage in sales.

### Sole proprietor route

Tell the tax office you have started: the opening notification (個人事業の開廃業等届出書) is due by the filing deadline of the year you start. A blue return approval application is due by 15 March, or within 2 months if you started on or after 16 January. Tax details are in our [freelance taxes guide](/work/freelance/freelance-taxes-japan-foreigners/).

Your visa limits what you can do. Whether you may run your own business depends on your status; see [freelancing and side jobs on a Japanese visa](/visa/visas/freelance-side-job-visa-japan/).

## Setup steps for a company

JETRO's steps, in order:

JETRO says establishment procedures typically take three months, and a certificate of eligibility usually takes about one to three months from application to issuance. Personal seals can cost as little as ¥5,000 and a company seal set as little as ¥10,000.

## The visa for founders

The status for running or managing a business is **Business Manager (経営・管理)**. The Immigration Services Agency (ISA) says it excludes activities that need a legal or accounting qualification. You submit a business plan reviewed by an expert, registration records and financial statements, plus proof of office premises and any required licenses.

Since **16 October 2025**, new applicants need (details in our [Business Manager visa guide](/visa/visas/business-manager-visa-japan/)):

- **¥30 million** in capital (paid-in capital or total contributions for a corporation)
- at least one full-time employee who is a Japanese national, a special permanent resident or holds certain statuses such as permanent resident or spouse of a Japanese national
- **B2-level Japanese** from you or an employee
- 3 years of business management experience or a relevant master's, doctoral or professional degree
- a business plan confirmed by a qualified expert (SME management consultant, certified public accountant or tax accountant)

For existing holders, ISA says that for renewals before 16 October 2028, failing the new standards alone is not grounds for denial. After that date the new standards apply. The [startup visa](/visa/visas/startup-visa-japan/) is a separate route for early-stage founders.

If you already have a status with no work limits, such as permanent resident, ask immigration whether you need Business Manager at all.

## After you register

- **Pension and insurance.** The Japan Pension Service says corporations, even with only the owner, are mandatory-coverage workplaces for employees' pension. Sole proprietorships are covered when they have five or more regular employees, with exceptions such as agriculture and service industries.
- **Banking.** Opening the corporate account is a step in JETRO's list; ask your bank what documents it wants.

Rules and fees change. Confirm each figure with JETRO, ISA and a professional before you commit money.

## Questions people ask

### Can a foreigner start a company in Japan?

Yes. JETRO describes how foreign investors set up a KK or GK, and a branch is another route. Whether you may work as the manager depends on your status of residence.

### What is the difference between a KK and a GK?

Both are subsidiaries with liability limited to what owners contributed. According to JETRO, a GK's articles of association offer more self-governance, including how financial statements are handled.

### Do I need the Business Manager visa to start a company?

It is the status for running or managing a business in Japan. If your current status already lets you work without limits, such as permanent resident or spouse of a Japanese national, you may not need it. Ask immigration or an administrative scrivener (行政書士) about your case.

### How much does it cost to set up a company in Japan?

JETRO says corporation registration costs start at about ¥250,000, not counting seals and bank fees, with professional fees usually ¥200,000 to ¥500,000. A branch starts around ¥100,000.

### Does a company have to join social insurance?

The Japan Pension Service says corporations, even with only the owner, are mandatory-coverage workplaces for employees' pension. A sole proprietorship generally is when it has five or more regular employees, with exceptions.

## Sources

- [How to Set Up Business in Japan](https://www.jetro.go.jp/en/invest/setting_up/guide/), JETRO (accessed Oct 29, 2026)
- [在留資格「経営・管理」](https://www.moj.go.jp/isa/applications/status/businessmanager.html), Immigration Services Agency of Japan (出入国在留管理庁) (accessed Oct 29, 2026)
- [在留資格「経営・管理」に係る上陸基準省令等の改正について](https://www.moj.go.jp/isa/applications/resources/10_00237.html), Immigration Services Agency of Japan (出入国在留管理庁) (accessed Oct 29, 2026)
- [適用事業所とは](https://www.nenkin.go.jp/service/kounen/tekiyo/jigyosho/20150518.html), Japan Pension Service (日本年金機構) (accessed Oct 29, 2026)
- [No.2090 新たに事業を始めたときの届出など](https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/2090.htm), National Tax Agency (国税庁) (accessed Oct 29, 2026)