Can a non-resident form a Godo Kaisha (GK) / Kabushiki Kaisha (KK) in Japan?
Partially — Japan typically requires in-person presence or a local representative. As of 2026, the path looks like this for a non-resident founder:
Step-by-step process
- Choose your entity type. Most non-residents pick a Godo Kaisha (GK) / Kabushiki Kaisha (KK) — the Japan equivalent of an LLC / private company.
- Engage a local agent / corporate service provider. Required in many jurisdictions; expect to pay $300-$1,500 for full setup assistance.
- Reserve a company name with Japan's business registry.
- Submit incorporation documents: articles of association, director/shareholder details, registered address.
- Pay state filing fee: approximately $420.
- Receive certificate of incorporation in approximately 14 business days.
- Open a business bank account (see banking accessibility 9/10 below — this is often the harder step).
- Register for tax with Japan's tax authority. VAT/GST may apply at 10%.
Real cost beyond the filing fee
| Item | Typical cost (USD) |
|---|---|
| Government filing fee | $420 |
| Annual maintenance fee | $0 |
| Local agent / formation service (one-off) | $300–$1,500 |
| Bank account opening (third-party fees) | $0–$500 |
| Accounting / tax filing (annual) | $500–$3,000/yr |
Banking — the real chokepoint
Japan's business banking accessibility is 9/10. Most online and traditional banks accept non-resident-owned companies. Mercury, Wise, Revolut Business, and local banks are workable.
Tax implications
- Corporate income tax in Japan: headline 23.2%. National 23.2% + local resident + enterprise = ~30% effective for large; ~22% SME.
- VAT/GST: 10% — applies if registered for VAT (thresholds vary).
- Dividend / withholding tax: when profits are distributed to non-resident owners, withholding tax usually applies. Tax treaties can reduce it.
- Home-country tax: your country may apply CFC (controlled foreign company) rules. Many countries do. Check before incorporating.
When Japan makes sense for non-residents
Japan is commonly chosen by non-residents for: Japanese market, Tech/manufacturing. For comparison with a US LLC, see Japan vs USA. For US-specific tax math, use our non-resident US LLC tax calculator.