Starting a Business in Japan: Incorporation Basics and the Business-Manager Route

Quick answer

If you want to run a business in Japan, there are two things to understand at a high level: how you form a company (most people choose a kabushiki kaisha, or KK, or a godo kaisha, or GK) and, separately, whether you need the Business Manager status of residence to legally run it. This article is a friendly orientation to both — not legal, tax, or immigration advice. The exact requirements are specific and change, so I'll point you to the right professionals as we go.

KK or GK: the two common company forms

Most foreign founders in Japan end up with one of two structures. A kabushiki kaisha (KK, 株式会社) is the classic joint-stock company — it carries a lot of trust and name recognition, which can matter with banks, clients, and partners, but it involves more formality in how it's set up and run. A godo kaisha (GK, 合同会社) is a simpler, more flexible limited-liability form that's typically cheaper and quicker to establish, which is why many small teams and solo founders start there.

Neither is automatically 'better' — it depends on your goals, who you'll deal with, and how you want ownership and management to work. This is exactly the kind of decision worth talking through with an accountant (税理士) or an administrative scrivener (行政書士) before you commit.

What incorporation generally involves

At a conceptual level, forming a company means preparing your articles of incorporation (定款), which set out things like the company name, its purpose, and its basic rules. You'll also need a registered office address, capital contributed by the founders, and a company seal for official documents.

The company legally comes into existence when it's registered at the Legal Affairs Bureau (法務局). After registration there are follow-on steps — notifying the tax office, social insurance, and sometimes your local ward — so it helps to see incorporation as the start of a short sequence rather than a single event.

The Business Manager status of residence

Forming a company and having the right to run it are two different questions. Japan has a Business Manager (経営・管理) status of residence for people who manage or run a business here, and if you're a foreign resident whose current status doesn't permit business management, this is often the route people look into.

Eligibility and conditions — things like office space, capital, and staffing — are specific, and they do change over time. I'm deliberately not quoting figures here, because the reliable answer is the one that applies on the day you file. Treat immigration and a specialist as your source of truth.

Who to ask — and why it's worth it

A licensed administrative scrivener (行政書士) is the go-to professional for preparing incorporation and immigration paperwork, and many specialize in helping foreign founders. A lawyer (弁護士) can help with contracts and anything contentious, and a tax accountant (税理士) handles the tax and bookkeeping side that follows once you're up and running.

Getting the structure and the visa question right early is much cheaper than fixing them later. A short paid consultation to confirm which company form and which status fit your situation is, in my experience, money very well spent.

A phone number quietly runs through all of it

Once you're actually operating, notice how much of running a business flows through a Japanese phone number. Opening a business bank account, registering with government portals, invoicing and getting paid, confirming appointments with your scrivener or accountant — they verify and reach you by phone, and many won't proceed without a Japanese number on file.

That's why I nudge new founders to sort a personal Japanese line early. It's the small piece of plumbing that makes every later step — banking, filings, calls — go smoothly instead of stalling.

Getting your Japanese number sorted

The easy path is an eSIM. Once your residence card is in hand, you can typically set it up online in about 15 minutes and activate the same day — no trip to a store, no waiting for a card in the mail. If your phone supports eSIM, you scan a code and you're connected.

Do this before the busy stretch of meetings and paperwork, and you'll have a working number ready for every bank form and portal login along the way. Get the foundational piece in place first, and the rest of your setup feels a lot calmer.