KizunaX

Corporate Registration & Business Set Up​

Corporate Registration & Business Set Up

Establishing a legal entity in Japan requires precision, compliance, and cultural fluency. From selecting the right corporate structure to navigating local regulations, our end-to-end support ensures your business is registered swiftly and correctly.

Corporate Registration & Business Set Up​

Used for non-commercial activities like market research, liaison, or sourcing, without generating revenue or signing contracts.

Ideal for companies testing the waters before committing to a full legal entities 

  • Legal Status: ❌ Not a separate legal entity

  • Commercial Activities: ❌ Not allowed

  • Can Hire Staff: ⚠️ Limited options

  • Can Sponsor Visa: ❌ No

  • Local Nominee Required: ✅ Yes

Allows a foreign company to operate in Japan without creating a separate legal entity.
Best for businesses needing continuity with their global structure or operating under a unified corporate identity.

  • Legal Status: ✅ Extension of parent

  • Commercial Activities: ✅ Allowed

  • Can Hire Staff: ✅ Yes

  • Can Sponsor Visa: ✅ Yes

  • Local Nominee Required: ✅ Yes

A flexible, cost-effective setup suitable for startups or foreign SMEs entering Japan with minimal overhead.
Commonly used for quick market entry, pilot projects, or wholly-owned Japanese subsidiaries.

  • Legal Status: ✅ Legal entity

  • Commercial Activities: ✅ Allowed

  • Can Hire Staff: ✅ Yes

  • Can Sponsor Visa: ✅ Yes

  • Local Nominee Required: ✅ Yes*

*Residency not a legal requirement for incorporation after the revision to Japan’s Companies Act in 2015. However, a local representative or agent is required to handle key processessuch as capital injection, office contracts and bank account opening.

A flexible, cost-effective setup suitable for startups or foreign SMEs entering Japan with minimal overhead.
Commonly used for quick market entry, pilot projects, or wholly-owned Japanese subsidiaries.

  • Legal Status: ✅ Legal entity

  • Commercial Activities: ✅ Allowed

  • Can Hire Staff: ✅ Yes

  • Can Sponsor Visa: ✅ Yes

  • Local Nominee Required: ✅ Yes*

*Residency not a legal requirement for incorporation after the revision to Japan’s Companies Act in 2015. However, a local representative or agent is required to handle key processessuch as capital injection, office contracts and bank account opening.

POINTS OF CONSIDERATION

Credibility

The KK (Kabushiki Kaisha) is Japan’s most traditional corporate structure and is widely recognized by Japanese customers, partners, and institutions.

While the GK (Godo Kaisha) is a newer structure (introduced in 2006), it has gained broader acceptance — even among major global companies operating in Japan (e.g., Amazon, Apple, ExxonMobil).

That said, some industries may still favor the KK for its perceived prestige and formality

Scalability

The KK supports larger, scalable operations — including the ability to:

  • Establish a Board of Directors
  • List on a stock exchange
  • Issue shares to raise capital

 

The GK is better suited for small to mid-sized, privately held businesses and does not support these mechanisms

Ownership

 A KK provides clear separation between shareholders and management, supporting more formal governance structures.

In GK investors considered as partners and typically hold both ownership and operational control — with less flexibility in assigning voting rights or profit distribution based on investment proportion.

Cost

GK is more cost-efficient to establish and maintain

  • Lower incorporation fee
  • Fewer legal obligations (no annual shareholders’ meetings or mandatory disclosures

KK requires ongoing compliance, including:

  • Annual shareholder meetings
  • Financial disclosures
  • Board meetings and statutory auditor oversight (if applicable)

Client Testimonials