Overview: Two Main Business Structures
When starting a business in Japan, most founders choose between two legal structures:
- Kabushiki Kaisha (KK) — A joint-stock company. More prestigious, preferred by larger clients and investors, but involves higher setup costs.
- Godo Kaisha (GK) — A limited liability company. Cheaper and faster to set up, popular with small startups and sole operators.
For most early-stage Kansai founders, a GK is a sensible starting point. You can always convert to a KK later.
Step-by-Step: Registering a Godo Kaisha (GK)
- Choose a company name — Check for conflicts using the National Tax Agency's database or the Legal Affairs Bureau website.
- Prepare your Articles of Incorporation (定款) — This document outlines the company's purpose, capital, and management structure. You can draft it yourself or use a judicial scrivener (司法書士).
- Notarize the Articles (KK only) — For a GK, notarization is not required, saving time and money.
- Open a bank account and deposit capital — Even ¥1 is legally sufficient, but a realistic minimum is ¥100,000–¥500,000 for credibility.
- File for registration at the Legal Affairs Bureau — In Osaka, this is the Osaka Legal Affairs Bureau. In Kyoto, it's the Kyoto District Legal Affairs Bureau. Registration fees for a GK are ¥60,000.
- Obtain your company seal (法人印) — Required for contracts, official documents, and banking.
- Register with the tax office — Submit your opening notification to the local tax office within two months of incorporation.
Timeline and Costs (Approximate)
| Item | GK (Godo Kaisha) | KK (Kabushiki Kaisha) |
|---|---|---|
| Registration fee | ¥60,000 | ¥150,000 |
| Notarization | Not required | ~¥52,000 |
| Company seal | ¥5,000–¥30,000 | ¥5,000–¥30,000 |
| Typical timeline | 1–2 weeks | 2–4 weeks |
Foreign Nationals: Additional Considerations
Non-Japanese founders can register a company in Japan, but the process has extra steps. You'll generally need a valid visa status that permits business activities, or you'll need a Japanese resident to serve as a representative director.
Osaka's Global Startup Center (part of Osaka City's startup promotion efforts) offers English-language support and can connect you with advisors familiar with foreign-founder cases.
Getting Help in Kansai
Consider working with a local 司法書士 (judicial scrivener) — they specialize in company registration and can handle filings on your behalf for a reasonable fee. Many firms in Osaka and Kyoto have experience with startup clients and offer flat-rate packages.