Last Updated: July 10, 2025
Japan is the world’s fourth-largest economy and a major economic power. The nation is among the world’s largest electronic equipment and motor vehicle producers. The service sector forms the biggest percentage of Japan’s economy in terms of employment and GDP. With supportive government policies, a streamlined process for setting up companies, and a stable economy Japan is an attractive market for foreign businesses and investors looking to expand into the Asian market.
Capital City
Tokyo
Language
Japanese
Currency
Japanese Yen (¥)
Business Hubs
Tokyo, Osaka, Fukuoka, Nagoya
Unlock growth opportunities in Japan with Cerity Global as your trusted partner. We offer end-to-end support for establishing your legal entity, navigating France’s often complex regulatory landscape with clarity and efficiency.
From company registration to ongoing back-office support, including HR, payroll, benefits, accounting, tax and compliance, Cerity Global simplifies the process so you can focus on growing your business.
Need to hire quickly before your entity is set up? We offer interim EOR services in Japan, enabling you to onboard talent fast. Once your entity is established, we ensure a smooth transition of your employees from the EOR structure to your own legal entity, without disrupting payroll or compliance.
Our experts stay ahead of regulatory changes to keep your operations aligned with Japan’s employment and tax laws, helping you scale confidently and compliantly.
Also known as a joint stock company, a KK is the most popular and prestigious business structure for foreign investors in Japan. It is similar to a corporation and can issue shares, making it ideal for raising capital and establishing credibility with Japanese partners. It offers limited liability protection and is suitable for small to large businesses across all sectors.
Also known as a limited liability company, GK is a flexible business structure and was introduced in 2006. GK offers limited liability protection, simpler management structure, and lower incorporation costs compared to KK. It’s suitable for smaller businesses and subsidiaries of foreign companies, though it may have less recognition in the Japanese market.
A dependent entity of a foreign company that allows the parent company to conduct business in Japan. The parent company bears full liability for the branch’s activities. Suitable for established international companies looking for direct market presence without creating a separate legal entity.
A liaison office that can conduct market research, promotional activities, and business development but cannot generate revenue or sign contracts. Ideal for companies exploring the Japanese market before committing to full business operations.
At least one director must be a resident of Japan. The director must have a registered address in Japan and be available to fulfill legal obligations. Foreign nationals with Japanese residence status can serve as resident directors.
At least one representative member must be a resident of Japan. Similar to KK, the representative must have a Japanese address and be able to fulfill legal responsibilities.
A resident representative must be appointed who has a valid Japanese address and is authorized to represent the foreign parent company in Japan.
A resident representative is required to oversee the office operations and serve as the primary contact with Japanese authorities.
In Japan, corporate bank accounts can typically be opened during or shortly after company incorporation. Major banks require the company to have a valid business registration, office lease agreement, and proper documentation.
Cerity Global supports companies in their global expansion plans and helps in legal entity setup, registration and ongoing support services. With us, you can quickly set up a legal entity, operate compliantly, and expand globally. The process typically takes a few days to a week, depending on the bank.
Reasons you should setup legal entity in Japan:
Cerity Global ensures your business expansion in Japan is fast, compliant, and future-ready, so you can focus on growth while we manage the back-office tasks.
Economic figures are subject to change based on quarterly reports and market conditions.
Cerity Global combines deep local knowledge with proven expertise to make your Japan business establishment effortless and compliant. Whether you’re looking for legal entity setup and registration or ongoing support, we’re your trusted partner for sustainable global expansion in Japan.
Disclaimer – The information provided is for informational purposes only and does not constitute legal, business, or tax advice. Entity setup requirements, tax rates, and economic data are subject to change and may vary by location.
To discuss your needs and how we can help you achieve a compliant and efficient expansion.