19 August 2026
Open a LLC in Japan
Learn the requirements and steps for setting up a limited liability company (godo kaisha) in Japan. Our company formation experts can help you register it.
Setting up a private limited liability company (LLC) in Japan is a great way to start a business, especially if you are a foreign investor. Discover how to register it below.
| Quick Facts | |
|---|---|
| Minimum share capital when you set up a LLC in Japan | 1 yen |
Minimum number of shareholders | 1 |
| Number of directors | No mandatory minimum |
| Mandatory residency requirements | None to register the company; a residence status (e.g. Business Manager visa) is needed only to live and work in Japan |
| Local director required in Japan (Yes/No) | No |
| Time frame for the incorporation (approx.) | 4 weeks |
| Corporate tax rate in Japan | approx. 31-35% including the local taxes and the defense special corporate tax (from April 2026) |
| Dividend tax rate | 20.42% withholding (GKs are unlisted), reduced under tax treaties |
| VAT Rate in Japan | 10% standard consumption tax, with a lower 8% rate for certain items |
| Number of double taxation treaties (approx. ) | 78 |
| Annual meeting required | Not required |
| Accounting and filing requirements | Annual tax returns within two months of the end of the fiscal year |
| Foreign-ownership allowed for those who set up a LLC in Japan | Yes |
| Tax exemptions or incentives | Tax credits, R&D credit, carbon neutral credit. Conditions apply |
| Additional licenses when you set up a LLC in Japan | Yes, industry-specific ones |
Do you offer support in LLC registration in Japan?
Yes, we do. Our local agents offer tailored LLC registration services in Japan.
What are the most important characteristics of a Japanese LLC?
The LLC or Godo Kaisha (GK):
- can be fully owned by foreigners;
- has its capital divided into membership interests (mochibun), not shares;
- offers its owners or shareholders limited liability for the debts and other obligations;
- can be used for various activities in and outside of Japan.
Also, the LLC’s participants are called ‘’members’’ unlike the investors of a joint stock company, called “shareholders”.
There aren’t any share capital requirements to set up an LLC; however, the members can only contribute to the capital in cash or kind, and not in services.
The members choose a manager to act in the name of the company and in their interests. This manager may be a natural person or a corporate body. If a corporate body is elected as a manager, it must appoint a functional manager to act in the name of the company.
What are the requirements to open an LLC in Japan?
The following:
- it must have at least one shareholder;
- there is no minimum number of directors for this business form; as such, the owner can also act as a manager;
- the minimum capital required is JPY 1;
- a legal address must be provided upon registration (a virtual office can be used for registration, but not for the Business Manager visa).
NOTE: No Japan-resident representative is legally required (since March 2015), but a local representative is advisable if you do not appoint a resident director.
We invite you to watch the following video about the Japanese LLC:
Can I register a limited liability company in Japan remotely?
Yes, through our dedicated company formation services in Japan.
What are the steps to register a GK in Japan?
- Trading name reservation;
- Articles of Association drafting;
- Bank account opening and deposit of the share capital;
- Documents filing with the Trade Register;
- Company seal creation;
- Tax registration.
If the limited liability company opened in Japan will hire personnel, it must register at the Labor Standards Bureau for the labor insurance. Also, a notification must be sent to the Social Insurance Office, so the company is registered for health insurance and public welfare pension.
The last step in establishing a limited liability company in Japan is submitting an application to the Public Employment Security Office no later than 10 days from the beginning of employing personnel.
What are the documents required for LLC registration in Japan?
The following:
- Articles of Association;
- ID/passport of the shareholder;
- Certificate for capital deposit;
- proof of a Japanese registered address.
How long does it take to register an LLC in Japan?
Approx. a month.
What types of activities can I complete through an LLC in Japan?
One of the greatest advantages of the LLC is that there are no limitations on the activities foreign investors can carry out through it in Japan.
Do you offer assistance in other countries?
In case you would like to start a limited liability company in another Asian country, for example in Singapore, we can put you in contact with our local partners who are experts in registering private limited companies in Singapore.
In case you are interested in opening an LLC company in another country, for example in Switzerland, our team can put you in contact with our Swiss partners.
Investors who open this type of company may also be interested in immigration to Japan. In case you need immigration and legal services in Australia or in Mexico, we can put you in contact with our partners.
In case you are interested in investing in Labuan, our team of formation agents can put you in contact with our Malaysian partners.
Please contact our team for a customized offer.