Can an Indian entrepreneur register a company in Japan without relocating? The short answer is yes foreigners can own 100% of a Japanese company, and you can initiate much of the process remotely. However, Japan’s incorporation system is unlike anything you’ll encounter in Singapore, the UAE, or even the US. From mandatory company seals (hanko) to notarised articles of incorporation, understanding the rules before you begin can save you weeks of back-and-forth.
This guide walks you through everything: choosing between a Kabushiki Kaisha (KK) and a Godo Kaisha (GK), the step-by-step registration process with the Ministry of Justice (MOJ), document requirements, and how organisations like JETRO can support you.
Can Indians Own 100% of a Japanese Company?
Yes. Japan allows 100% foreign ownership in virtually all industries, with very limited exceptions in sectors like broadcasting, airlines, and certain defence-related fields. There is no requirement for a Japanese co-founder, local partner, or minimum shareholding by Japanese nationals.
This is a significant advantage compared to some Southeast Asian markets where foreign equity caps apply. Indian entrepreneurs in IT services, manufacturing, e-commerce, and consulting regularly establish wholly-owned Japanese entities.
That said, at least one Representative Director must have a Japanese address (not just a registered office address an actual residential address). This is the single most common stumbling block for non-resident founders. Solutions include:
- Hiring a Japanese resident as a nominee Representative Director initially
- Relocating a team member to Japan on an appropriate visa
- Using a professional service provider who can act as Representative Director
KK vs GK Which Structure Should You Choose?
Japan has two primary company types relevant to foreign entrepreneurs: the Kabushiki Kaisha (KK) a joint-stock company and the Godo Kaisha (GK) a limited liability company. Here is how they compare:
| Feature | KK (Kabushiki Kaisha) | GK (Godo Kaisha) |
|---|---|---|
| Formation Cost | JPY 200,000–250,000+ | JPY 70,000–100,000 |
| Notarisation Required | Yes — Articles must be notarised | No — Self-authenticated allowed |
| Credibility with Banks | High — preferred by Japanese megabanks | Lower — some banks are cautious |
| Credibility with Clients | High — widely recognised structure | Moderate — perceived as smaller |
| Share Issuance | Yes — can raise equity investment | No shares — membership interests only |
| Governance Flexibility | Structured — board requirements apply | High — member-managed flexibility |
| IPO Potential | Yes | No |
| Ongoing Admin | More — annual shareholder meetings | Less — simpler governance |
| Best For | B2B, enterprise sales, banking, manufacturing, future fundraising | Holding companies, small operations, cost-conscious startups |
Our recommendation for most Indian entrepreneurs: Choose the KK if you are targeting Japanese enterprise clients, planning to raise funding, or need a Japanese megabank account (MUFG, SMFG, Mizuho). The higher upfront cost pays for itself in credibility. Choose the GK only if cost minimisation is the primary concern and you do not anticipate dealing with traditional Japanese banks.
Download our free “Japan KK vs GK Decision Matrix” PDF a one-page scoring tool to help you choose the right structure based on your business model, funding plans, and banking needs.
Minimum Capital Requirements
Japan legally permits incorporation with as little as JPY 1 in share capital. This was a deliberate policy introduced in 2006 to encourage entrepreneurship. However, there is a significant practical gap between the legal minimum and what you actually need:
- Japanese banks typically expect JPY 500,000–1,000,000 minimum to open a corporate account
- Business Manager Visa now requires JPY 30,000,000 (JPY 3 crore) as of October 2025 a dramatic increase
- Corporate credibility with Japanese clients often scales with declared capital
- The SME reduced corporate tax rate of 15% applies to companies with capital of JPY 100 million or less
For most operating subsidiaries of Indian companies, a capital of JPY 5,000,000–10,000,000 (approximately INR 28–56 lakh at current rates) is a practical starting point that satisfies banks without triggering unnecessary tax complications.
The Hanko (Company Seal) Requirement Japan’s Unique Bureaucratic Signature
If there is one thing that surprises Indian entrepreneurs about Japan, it is the hanko (also called inkan). Japan and China are almost alone in the world in requiring an official company seal for legal documents including the articles of incorporation, bank account applications, and many government filings.
For a Japanese company, you will need:
- Jitsu-in (Representative Seal) the official company seal registered with the Legal Affairs Bureau. This is the most
important seal. It is used to authenticate the articles of incorporation and for significant legal documents. - Ginko-in (Bank Seal) a separate seal registered with your bank. Never use the official seal for routine banking.
- Kaku-in (Angle Seal/Rubber Stamp) used for everyday correspondence, invoices, and internal documents.
The representative seal must be registered with the MOJ’s Legal Affairs Bureau (Houmukyoku) to obtain a Inkan Touroku Shoumeisho (seal registration certificate). This certificate is required for almost all significant transactions.
Practical notes:
- Hanko are typically ordered from a seal carver budget JPY 10,000–30,000 for a quality set
- The seal must be round, between 10–24mm in diameter, and must contain the company name in Japanese
- Store your official seal in a secure location replacing a lost registered seal is a multi-week legal process
- Japan is gradually moving towards digital seals (denshi-in) for some filings, but physical seals remain mandatory for incorporation
Documents Required to Register a Company in Japan
For a KK (Kabushiki Kaisha)
- Articles of Incorporation (Teikan) must be notarised by a Japanese notary (Koushousha)
- Shareholder resolution or promoter document
- Registration of Incorporation form (Application for Registration)
- Representative Director’s Seal Registration Certificate
- Bank receipt confirming capital deposit
- Identity documents of all directors and shareholders (passport copies with Japanese-certified translation if needed)
- Affidavit or certificate of signature (for foreign directors typically from a notary in India or the Japanese Embassy)
- Registered office proof
For a GK (Godo Kaisha)
- Articles of Incorporation (Teikan) does NOT require notarisation
- Registration of Incorporation form
- Representative Member’s Seal Registration Certificate
- Bank receipt confirming capital contribution
- Identity documents of all members
- Affidavit or certificate of signature for foreign members
- Registered office proof
Important for Indian founders: Documents originating in India must typically be accompanied by an apostille or notarised Japanese translation. India became a member of the Hague Apostille Convention in January 2005, so apostilling Indian documents is now relatively straightforward through the Ministry of External Affairs (MEA) in India.
Step-by-Step Registration Process (KK)
Step 1: Decide on Company Structure and Name
Choose KK or GK. Select a company name in Japanese (required). Check availability through the MOJ online registry. Your company name must include the words “Kabushiki Kaisha” (株式会社) either before or after the name.
Step 2: Obtain a Registered Office Address
Japan requires a physical Japanese address as the registered office. Options include your own office, a virtual office service (widely accepted), or a co-working space. Tokyo virtual offices in Minato-ku or Shibuya-ku cost JPY 5,000–30,000 per month.
Step 3: Order Your Company Seals (Hanko)
Order your representative seal from a professional seal carver. This must be done before notarisation as the seal impression appears on the articles. Budget 3–7 business days for delivery.
Step 4: Draft and Notarise the Articles of Incorporation (KK only)
Draft the Teikan the constitutional document of your company. For a KK, this must be signed by all promoters (shareholders) and then notarised by a Japanese notary public (Koushousha). Notarisation fee: approximately JPY 50,000. Notarisation can be done at any of Japan’s 300+ notary offices. If founders are abroad, a power of attorney to a Japan-based representative is required.
Step 5: Deposit Capital into a Bank Account
Capital must be deposited into a personal bank account of a promoter (not the company account, since the company does not yet exist). Obtain a bank statement confirming the deposit. This statement is submitted with the registration application.
Step 6: File Registration with the Legal Affairs Bureau (MOJ)
Submit all documents to the Legal Affairs Bureau (Houmukyoku) in the jurisdiction where your registered office is located (e.g., Tokyo Legal Affairs Bureau for Tokyo companies). Pay the registration licence tax:
- KK: JPY 150,000 minimum (or 0.7% of capital, whichever is higher)
- GK: JPY 60,000 minimum (or 0.7% of capital, whichever is higher)
Processing time: approximately 7–10 business days.
Step 7: Obtain Your Corporate Registration Certificate
Once approved, you can obtain a Touki Jikkou Shoumeisho (corporate registration certificate) and a Inkan Shoumeisho (seal certificate) from the Legal Affairs Bureau. These are required to open a bank account.
Step 8: Obtain Your Houjin Bangou (Corporate Number)
The National Tax Agency (NTA) automatically assigns a 13-digit corporate number (Houjin Bangou) within a few days of registration. This number is used for all tax filings, invoices under the Qualified Invoice System, and government interactions.
Step 9: Register with Tax Authorities
File a Notification of Incorporation (Houjin Setsuritsu Todoke) with your local NTA tax office within 2 months. Also register with the prefectural and municipal tax offices. Critically apply for Blue Form tax status (Ao-iro Shinkoku) immediately — this unlocks 10-year loss carryforward and R&D tax credits.
Step 10: Social Insurance Registration
Register with the Japan Pension Service and your prefectural labour bureau for health insurance, pension, and employment insurance. Even a single employee triggers mandatory social insurance.
Step 11: Open a Corporate Bank Account
With your corporate registration certificate and seal certificate, you can now apply for a corporate bank account. See our separate guide on opening a Japanese business bank account this is notoriously the most difficult step for foreign companies.
Houjin Bangou Your 13-Digit Corporate Number
Japan’s Houjin Bangou (法人番号) is a unique 13-digit corporate identification number assigned by the National Tax Agency. It is the Japanese equivalent of India’s CIN (Company Identification Number) or the UK’s Companies House number.
Key facts:
- Assigned automatically no application needed
- Published on the NTA’s public database (searchable by anyone)
- Required on all tax invoices under Japan’s Qualified Invoice System (in effect since October 2023)
- Used for all national, prefectural, and municipal tax filings
- Remains with the company permanently does not change if you move offices or change directors
How JETRO Can Help Indian Entrepreneurs Register in Japan
The Japan External Trade Organization (JETRO) is a government-backed agency that actively supports foreign investment into Japan and it is genuinely useful, not just a brochure shop.
JETRO’s free services include:
- One-on-one business consultation with Japan market experts (in English)
- Legal and regulatory guidance for company formation
- Referrals to vetted lawyers, accountants, and administrative scriveners (gyosei shoshi)
- Temporary office space in JETRO’s Japan Business Support Centres (in Tokyo, Osaka, Nagoya, and other cities)
- Introduction to potential Japanese business partners
- Assistance navigating the visa application process
JETRO has offices in New Delhi and Mumbai, making them accessible for Indian entrepreneurs before they even travel to Japan. Their Invest Japan Business Support Center in Tokyo provides free temporary office space for up to one year for newly established foreign companies.
Realistic Timeline and Costs
Timeline
| Stage | Estimated Duration |
|---|---|
| Preparation (documents, name search, seals) | 2–3 weeks |
| Notarisation of Articles (KK) | 1 week |
| Capital deposit and documentation | 3–5 business days |
| MOJ registration processing | 7–10 business days |
| Bank account opening | 2–8 weeks (most variable step) |
| Total (KK) | 6–12 weeks |
| Total (GK) | 4–8 weeks |
Cost Summary (KK)
| Item | Approximate Cost |
|---|---|
| Notary fee (Articles of Incorporation) | JPY 50,000 |
| Registration licence tax (minimum) | JPY 150,000 |
| Company seals (set of 3) | JPY 15,000–50,000 |
| Professional service fee (lawyer/scrivener) | JPY 50,000–150,000 |
| Translation and apostille costs | JPY 20,000–50,000 |
| Total (DIY) | JPY 200,000–250,000 |
| Total (with full professional support) | JPY 350,000–500,000 |
Frequently Asked Questions
Do I need to be in Japan to register a company?
Not necessarily. Many steps can be done remotely with a power of attorney. However, at least one Representative Director must have a Japanese residential address, which in practice means you need either a Japan-based partner, employee, or professional nominee director.
Can I use a virtual office as my registered address?
Yes. Virtual offices are widely used and accepted by the MOJ. However, some banks are cautious about companies whose registered address is a shared virtual office. Consider a dedicated office address if banking is a priority.
Is English sufficient for registration documents?
No. All documents submitted to the MOJ must be in Japanese. If your original documents are in English or any other language, certified Japanese translations are required. This is one of the strongest reasons to engage a Japanese administrative scrivener (gyosei shoshi) or lawyer.
Can a GK be converted to a KK later?
Yes. A GK can be converted to a KK through a formal legal process (organisational conversion). However, it involves costs and administrative work, so it is better to choose the right structure from the start.
What is an administrative scrivener (gyosei shoshi)?
A gyosei shoshi is a licensed professional who specialises in administrative and registration documents in Japan somewhat like a company secretary in India. They are typically more affordable than lawyers for pure registration work and are commonly used for company incorporation filings.
What happens after registration what are my compliance obligations?
After registration, you must file corporate tax returns within 2 months of your fiscal year end, register for social insurance, comply with Japan’s Qualified Invoice System for consumption tax, and maintain proper accounting records. See our Japan Compliance Checklist for full details.