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

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.

Sole proprietor, GK or KK

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.

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.

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):

• ¥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 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.