Setting Up a Company in Japan to Invest: GK vs KK

Why set up a company to invest in Japan

A foreigner can buy property in Japan in their own name, with no residence or visa. So a company is never required just to buy. It becomes relevant in three specific cases:

• Holding several properties or an income-producing building in a dedicated vehicle (asset ring-fencing, succession, sale of shares);
• Running an activity such as minpaku (minpaku, short-term rental) or a ryokan (旅館, inn): an operating licence is often easier to hold through a company;
• Preparing a visa keiei kanri (keiei kanri, business management, the "business manager" visa), which requires a genuinely active business — the company is then an essential prerequisite.

A company is not a magic tax scheme: it carries running costs (accountant, filings) and only makes sense above a certain volume. For a first home purchase it is usually pointless — start with our buying guide.

Gōdō gaisha (GK) vs kabushiki kaisha (KK): the comparison

Japanese law mainly offers two limited-liability forms. The gōdō gaisha (gōdō gaisha, GK, modelled on the US LLC) is simple and cheap; the kabushiki kaisha (kabushiki gaisha, KK, joint-stock company) is more prestigious and better recognised by banks and partners.

Criterion	Gōdō gaisha (GK)	Kabushiki kaisha (KK)
Nature	LLC-type	Joint-stock (SA-type)
Incorporation cost	~¥100,000 (≈ €670)	~¥250,000 (≈ €1,670)
Notarised articles	Not required	Required (~¥50,000 notary fee)
Registration tax tōroku menkyo-zei	¥60,000 minimum	¥150,000 minimum
Legal minimum capital	¥1 (symbolic)	¥1 (symbolic)
Image / credibility	Fine	Better (banks, large landlords)
Timeline	1 to 2 weeks	2 to 3 weeks

The tōroku menkyo-zei (tōroku menkyo-zei, registration tax) is 0.7% of capital with a floor: ¥60,000 for a GK, ¥150,000 for a KK. For a plain property-holding vehicle, the GK is more than enough and costs two to three times less. The KK is worth it if you plan to raise funds, deal with demanding Japanese partners, or want a stronger image with banks.

Representative director, address, capital: the watch-outs

The representative

Every company needs a legal representative (daihyō shain for a GK, daihyō torishimariyaku for a KK). Since 2015 no representative needs to reside in Japan — so a non-resident can in principle set up and run the company. In practice, an address and a contact in Japan remain almost indispensable for the bank and the authorities.

The registered office

The company needs a registered address. A home, an office, a co-working space or a mail address can work — but some banks and immigration examine whether the premises are real, especially if you are seeking a visa.

Capital

The legal minimum is ¥1, purely symbolic. But credible capital (often ¥3–5M, i.e. €20,000–33,000) reassures banks and partners — and if you are preparing a keiei kanri visa, the capital threshold is far higher (see below). Do not undercapitalise a company meant to buy real estate.

Corporate tax and business banking

Corporate tax

A Japanese company pays national corporate tax (hōjin-zei, hōjin税) plus local taxes (inhabitant and enterprise). The effective rate (jikkō zeiritsu, 実効税率) is around 30 to 34% for an SME depending on size and location — stay cautious: it depends on profit, capital and municipality. This is often favourable versus the individual progressive scale (up to 45% + 10% local) above a certain rental income, which is why a structure pays off beyond a given volume. Compare with rental-income tax in your own name as a non-resident.

The business bank account: the real hurdle

This is problem number one. Opening a business account for a company owned or run by a non-resident is often refused by Japanese banks, which want a resident representative, a real address and sometimes visible activity. Without an account, the company can neither collect rent nor pay its costs easily. Plan this upfront: it often decides whether the whole structure is feasible. Our buying support builds this in from the project's framing.

Company vs business-manager visa: don't confuse them

Many believe that opening a company in Japan grants a visa. It does not. Owning a gōdō gaisha or a kabushiki kaisha confers no residence status. The company is only a prerequisite for the keiei kanri (keiei kanri) visa, which is granted on application to the immigration service nyūkan (入管).

The October 2025 reform sharply raised this visa's requirements: the capital needed rose to ¥30,000,000 (≈ €200,000), with tighter criteria on real activity, employment and the business plan. A mere passive property-holding company usually does not qualify: immigration expects a genuinely managed business. Details are in our dedicated piece on the business-manager visa for real estate.

Remember the golden rule: buying property grants no visa, and setting up a company grants none either — only an approved keiei kanri application does.

In short: a useful block, not a magic wand

Setting up a company in Japan to invest makes sense once you accumulate properties, run minpaku, or prepare a keiei kanri visa. For a plain holding vehicle, the gōdō gaisha (GK) is the default: ~¥100,000 to incorporate, no notarised articles, fast. The kabushiki kaisha (KK) is justified for banking credibility and partners.

Three reflexes: 1) anticipate opening the business account, often the true bottleneck for a non-resident; 2) capitalise the company seriously; 3) don't confuse company with visa — the 2025 reform tightened keiei kanri (¥30M capital). To build your strategy, see how to structure an income-producing building and run your project through our yield simulator. Unsure which structure fits? Let's talk through our buying support.

Frequently asked questions

Do you need a company to buy property in Japan?

No. A foreigner, even a non-resident, can buy real estate in Japan in their own name, with no company or visa. A company only becomes useful for holding several properties, running an activity such as minpaku, or preparing a business-manager keiei kanri visa.

GK or KK: which company form to choose for investing?

For a plain property-holding vehicle, the gōdō gaisha (GK, LLC-type) is enough: about ¥100,000 to incorporate, no notarised articles, fast. The kabushiki kaisha (KK, joint-stock) costs more (~¥250,000) but offers stronger credibility with banks and Japanese partners.

Does setting up a company in Japan grant a visa?

No. Owning a Japanese company confers no residence status. The company is only a prerequisite for the business-manager keiei kanri visa, granted on application to immigration. Since the October 2025 reform, that visa requires ¥30,000,000 of capital and a genuinely managed business.

What is the corporate tax rate in Japan?

The combined effective rate (national hōjin-zei plus local taxes) is around 30 to 34% for an SME, depending on profit, capital and municipality. This figure is indicative only: it varies and should be confirmed with a Japanese accountant.

Can a non-resident open a business bank account?

This is the main difficulty. Japanese banks often refuse a business account to a company run by a non-resident, lacking a resident representative, a real address or visible activity. You must anticipate this very early, as it decides whether the structure is feasible.