Types of Companies You Can Register in Japan

When starting a business in Japan as a foreign entrepreneur, one of the first and most important decisions is choosing the legal structure of your company. The type of company you register will affect your management flexibility, tax obligations, visa eligibility, and how your business is perceived in the Japanese market.

Here are the most common types of business entities for foreign-owned companies in Japan:

1. Kabushiki Kaisha (KK) – 株式会社

KK is the Japanese equivalent of a joint-stock company or corporation. It is the most traditional and trusted company type in Japan, especially for medium to large-scale businesses or those planning to work with Japanese partners or institutions.

Key Features:

  • Highly trusted by Japanese clients and banks
  • Requires notarization of the Articles of Incorporation
  • Requires a board of directors (or at least one director)
  • Suitable for visa applications (Business Manager Visa)
  • Can issue shares and attract investors

Best for:

  • Companies wanting a strong corporate image
  • Used car export businesses
  • Entrepreneurs planning long-term operations in Japan

2. Godo Kaisha (GK) – 合同会社

GK is the Japanese version of a limited liability company (LLC), similar to an American LLC. It is simpler and more flexible than a KK, with fewer formal requirements and lower costs.

Key Features:

  • Fast and cost-effective to establish
  • No notarization required
  • Owned and managed by members (can be a one-person company)
  • Also eligible for Business Manager Visa
  • Suitable for small to medium-sized operations

Best for:

  • Startups and solo entrepreneurs
  • E-commerce and digital businesses
  • Businesses that don’t need high formality

3. Branch Office vs. Subsidiary

Foreign companies can also choose between opening a branch office or registering a subsidiary in Japan. The right choice depends on your business goals and structure.

Branch Office

  • Not a separate legal entity — it’s an extension of the parent company
  • The parent company is fully liable for its activities
  • Easier to set up, but limited in scope (e.g., harder to get licenses)
  • Not eligible for some subsidies or tax planning benefits

Subsidiary

  • Registered as an independent Japanese company (KK or GK)
  • Limited liability — legally separate from the parent company
  • Can apply for licenses (e.g., Secondhand Dealer License)
  • Can sponsor Business Manager Visas
  • Easier to open bank accounts and rent offices

Best choice for most foreign entrepreneurs:

Subsidiary (KK or GK) — especially if you plan to hire staff, apply for licenses, or stay in Japan long-term.