Japan Subsidiary Setup Cost and Timeline for Foreign Companies (2026)

Last checked: 2026-10-30 ・ Researched and written by AI from official sources. Published by Spooling Dreams.

Short answer: For a KK (kabushiki kaisha) owned by a foreign parent company, the government fees start at about ¥220,000–¥240,000. This total assumes paper articles and capital low enough for the minimum registration tax. It adds the ¥150,000 minimum registration tax, a ¥30,000–¥50,000 notary fee and ¥40,000 stamp duty (see the table below). For a GK (godo kaisha), the registration tax alone starts at ¥60,000. Professional fees come on top. JETRO estimates registration costs "start at about 250,000 JPY," with professional fees usually between ¥200,000 and ¥500,000 (JETRO). By law, capital can be as little as ¥1. However, the Business Manager visa now requires ¥30 million or more (JETRO Q&A, ISA). JETRO says a subsidiary takes about 2–3 months once the company's details are decided (JETRO Q&A).

What are the government fees for a KK vs. a GK?

Checked October 2026.

Item	KK (stock company)	GK (LLC)
Registration license tax	0.7% of capital, minimum ¥150,000 (NTA)	0.7% of capital, minimum ¥60,000 (NTA)
Notary certification of articles	Capital under ¥1M: ¥15,000 only if all founders are individuals (max. 3), there is no board of directors and the founders take all the shares. Otherwise ¥30,000. ¥1M to under ¥3M: ¥40,000. ¥3M or more: ¥50,000. These fees apply from December 1, 2024 (Japan National Notaries Association)	Not required. The Ministry of Justice states that a GK's articles do not need to be certified by a notary (MOJ)
Stamp duty on the original articles	¥40,000 (NTA)	¥40,000 (NTA)

A foreign parent company is not an individual. So a subsidiary it owns does not qualify for the ¥15,000 notary fee (Japan National Notaries Association).
Registration tax above the minimum: the 0.7% rate exceeds the ¥150,000 KK minimum once capital is above about ¥21.4 million. At ¥30 million of capital, the tax is ¥210,000 (NTA).
Stamp duty: the ¥40,000 is charged on the original articles as a document (NTA). Ask a judicial scrivener (shiho shoshi) whether it applies in your case, for example if you prepare the articles electronically.

How much capital does a Japanese subsidiary need?

Legal minimum: ¥1 under the Companies Act (JETRO Q&A).
If someone needs a Business Manager visa: rules in force since October 16, 2025 require:
¥30 million or more in capital
at least one full-time employee
Japanese ability from either the applicant or a full-time employee (ISA)
For visa questions, speak with an immigration specialist (gyoseishoshi or an immigration lawyer).

How long does it take, step by step?

Decide the company's details. This means the entity type, name, business purpose, capital, directors and head office. Non-residents can be representatives of a subsidiary. A branch, by contrast, needs at least one representative living in Japan (JETRO Q&A).
Get documents from the parent company's country. You need documents that certify the foreign shareholder's profile, its representative's authority and the representative's signature. Usually these are an affidavit and a signature certificate notarized in the home country (JETRO).
Check foreign-exchange rules. Businesses in sectors such as national security, public order or public safety need prior notification to the Bank of Japan (BOJ). Otherwise, companies generally have to file a notification with the BOJ within 45 days of establishment (JETRO).
Prepare the articles of incorporation. A KK's articles must be certified by a notary (Japan National Notaries Association). A GK's articles do not need this (MOJ).
Pay in the capital. Banks in Japan, overseas branches of Japanese banks and branches of foreign banks in Japan can all handle the payment. If no outside investors are invited, the capital can be paid into an account held by a founding shareholder (JETRO).
Apply for registration at the Legal Affairs Bureau. You can apply on paper or online. The company is formed when it is registered (MOJ).
Open the corporate bank account and make the tax and social insurance filings (see below).

Total time: about 2–3 months after the company's details are decided (JETRO Q&A).

Do you need a company seal (inkan)?

Online filing: registering a seal has been optional since February 15, 2021 (MOJ).
Paper filing: you still need to register a seal (MOJ).
Foreign nationals without a registered seal can use a signature certificate issued by authorities in their home country (MOJ).
For banking: JETRO lists a corporate seal registration certificate among the documents for opening an account (JETRO). Check with your bank before you decide not to register a seal.

What do you need to open a bank account?

Typical documents: the company's certificate of registered matters and its seal registration certificate, plus identification and a bank seal (JETRO).
Timing and approval: no official source gives a standard processing time or approval rate. Ask the banks you are considering for their document lists early in the process.

Which tax and social insurance filings are due after registration?

Filing	Where	Deadline
Corporation establishment notification (with articles attached)	Tax office	Within 2 months of establishment (NTA)
Blue-return approval application (optional)	Tax office	The day before the earlier of these two dates: 3 months after establishment, or the end of the first fiscal year (NTA)
Notification of pre-fixed director compensation (if used)	Tax office	Within 2 months of establishment (NTA)
Notification of opening a payroll office	Tax office	Within 1 month of opening (NTA)
Health insurance and pension enrollment (new application)	Japan Pension Service	Within 5 days of becoming covered (Japan Pension Service)
Foreign-exchange notification (or prior notification)	Bank of Japan	Generally within 45 days of establishment (JETRO)

Consumption tax and withholding tax have their own filings (NTA).
Who to ask: a tax accountant (zeirishi) for tax filings, and a labor and social security attorney (sharoshi) for social insurance.

FAQ

What is the cheapest way to set up a subsidiary in Japan?

A GK has the lowest registration tax minimum, at ¥60,000, compared with ¥150,000 for a KK (NTA). A GK's articles also do not need notary certification (MOJ). Ask a corporate lawyer whether a GK suits your governance and your plans for outside investors.

Does the representative director have to live in Japan?

Not for a subsidiary: JETRO states that non-residents can be its representatives. A branch office needs at least one representative who lives in Japan (JETRO Q&A).

Is ¥30 million in capital required?

Company law does not require it; a company can be formed with ¥1 (JETRO Q&A). The ¥30 million applies when someone is applying for a Business Manager visa, under rules in force since October 16, 2025 (ISA).

Can the whole registration be done online?

The registration can be filed online (MOJ). A one-stop online service, running since January 26, 2021, lets you send the establishment filings for national tax, local tax and social insurance together (NTA). With online filing, registering a seal is optional (MOJ).

Do we need to notify the Bank of Japan?

Generally, yes. Companies generally have to file a notification with the BOJ within 45 days of establishment. Businesses in sectors such as national security, public order or public safety need prior notification instead (JETRO). A foreign-exchange specialist or corporate lawyer can tell you whether your sector needs prior notification.

Sources

General information only, not legal, tax or immigration advice. Rules change, so confirm with the official source and a licensed professional before you act.