Company Formation in Japan | KK & GK Setup | ASC Consulting
Service Overview
Japan, Asia's Most Sophisticated Business Market
Japan is the world's third-largest economy, known for its advanced manufacturing sector, world-class technology ecosystem, and highly discerning consumer market. Establishing a corporate presence in Japan requires navigating a unique regulatory environment, from the Companies Act and Legal Affairs Bureau registration to the shakai hoken social insurance system and Japan's consumption tax (JCT) obligations.
ASC Consulting guides international companies through every stage of Japan market entry, from selecting the optimal corporate structure (KK or GK) to registering with the Legal Affairs Bureau, setting up payroll under Japanese social security frameworks, and ensuring full compliance with J-GAAP accounting standards. Our bilingual team bridges the gap between international business expectations and Japan's distinctive administrative requirements.
IMPLEMENT
- • KK / GK Incorporation
• Trademark & IP Registration
• Banking Setup
• Corporate Compliance
THINK
DEVELOP
- • Distribution & Sales
• Supply Chain & Sourcing
• Digital Market Entry
• Fund Raising
What WE DO
- • Market Entry Strategy (KK / GK)
• Tax Planning (CIT / JCT)
• Cross-Cultural Business Advisory
• Regulatory Navigation (Japanese)
RUN
- • Accounting & Tax Filing
• Payroll (Shakai Hoken)
• Administrative Services
• Recruiting & HR
Industry Insights
Japan Market Entry: Business Insights
Japan's inbound FDI stock reached approximately USD 280 billion in 2023. The government's INVEST JAPAN initiative has significantly streamlined entry procedures for foreign businesses, particularly in digital, green energy, and life sciences sectors.
Despite its complexity, Japan rewards long-term commitment. Companies with a strong local presence, bilingual compliance support, and culturally informed market strategies consistently outperform those that attempt to manage Japan remotely. ASC Consulting provides the in-market expertise foreign companies need to establish, operate, and grow in Japan efficiently.
Benefits
World's 3rd Largest Economy: Access Japan's ¥600+ trillion GDP, advanced consumer market, and deep industrial supply chains across automotive, electronics, and pharma sectors.
100% Foreign Ownership: Japan allows full foreign ownership of KK (Kabushiki Kaisha) and GK (Godo Kaisha) companies, with no mandatory local partner requirement.
R&D and Innovation Incentives: Japan offers tax credits for qualifying R&D expenditure (up to 25% of CIT) and subsidies for foreign companies investing in technology, digital transformation, and green energy.
Strategic Asia-Pacific Location: Japan serves as a launchpad for business across East Asia, with strong trade ties to China, South Korea, ASEAN, and the USA under EPA/FTA frameworks.
Robust Legal & IP Protections: Japan has one of the world's most reliable IP protection systems and a stable, transparent legal environment for foreign investors.
Process
Our Japan Market Entry Process
Step 1, Structure Selection: KK or GK
We advise on the optimal structure for your business. The KK (Kabushiki Kaisha) is the gold standard, preferred by Japanese clients and banks. The GK (Godo Kaisha) offers lower setup costs and simplified management. We match the structure to your business goals and shareholder setup.
Step 2, Articles of Incorporation & Notarisation
We draft the Articles of Incorporation (Teikan) in Japanese and English, arrange notarisation by a Japanese notary public for KK companies, and prepare all shareholder and director resolutions required at the time of formation.
Step 3, Legal Affairs Bureau Registration
We submit your incorporation filing to the Legal Affairs Bureau (Homukyoku) and obtain the Commercial Register extract (Touki Jiko Shomeisho), the official proof of your company's legal existence in Japan.
Step 4, Tax & Social Insurance Registration
We register your company with the National Tax Agency (NTA) for corporate tax, consumption tax (JCT), and withholding obligations. We also handle registration with Hello Work and the pension/health insurance authorities under the shakai hoken system.
Step 5, Bank Account & Ongoing Operations
We assist with Japanese corporate bank account opening, implement accounting under J-GAAP standards, manage monthly payroll, and handle quarterly and annual tax filings to keep your Japanese entity in full compliance.
Frequently Asked Questions
What is the difference between a KK and a GK in Japan?
A KK (Kabushiki Kaisha) is a joint-stock company, the most prestigious and widely recognised structure in Japan. A GK (Godo Kaisha) is a limited liability company structure, simpler and cheaper to incorporate, but less well-known to Japanese partners. We help you choose based on your credibility needs and operational requirements.
What is the minimum capital to set up a company in Japan?
Since the 2006 Companies Act revision, there is no minimum capital requirement for KK or GK companies, ¥1 (one yen) is legally sufficient. However, we typically recommend ¥1,000,000 (¥1M) to facilitate bank account opening and maintain local credibility.
Do I need a Japanese resident director to incorporate?
A KK requires at least one representative director (daihyo torishimariyaku). While there is no explicit residency requirement in the Companies Act, many banks and local authorities expect at least one Japan-resident representative. ASC can advise on nominee director arrangements where appropriate.
How long does incorporation take in Japan?
The Legal Affairs Bureau typically processes registrations within 7–10 business days. With full document preparation, the entire process from initial consultation to registered company takes approximately 3–4 weeks.
What are Japan's corporate tax rates?
The effective combined corporate tax rate in Japan is approximately 23.2% (national corporate tax) plus 3.84% local corporate tax, resulting in a combined effective rate of roughly 29–34% depending on the municipality. SME preferential rates apply to the first ¥8M of income.
Getting Started
Our Main Places of Activity
Japan is one of Asia’s most sophisticated and lucrative markets, home to the world’s third-largest economy and a gateway to advanced manufacturing, technology, and consumer sectors. Establishing a presence in Japan requires navigating a complex regulatory environment, from the Companies Act and tax filings to labour law and the unique business culture that values long-term relationships and precision.
ASC Consulting guides international companies through every stage of Japan market entry, from selecting the right corporate structure (KK or GK) and registering with the Legal Affairs Bureau, to obtaining your corporate tax number, setting up payroll under the shakai hoken social insurance system, and ensuring full compliance with Japanese accounting standards. Our bilingual team bridges the gap between international business expectations and Japanese administrative requirements.
Explore our company formation services in other key markets: Hong Kong · Singapore · China · Indonesia
Our Group
We are a privately owned Group that prioritizes service to our clients with a personal approach. Founded by qualified professionals from legal and fiscal sectors with 25+ years of cross-border experience in Europe and Asia.
