How to Open an LLC in Japan as a Non-Resident or Non-Citizen

Image credit: Kazuma Seki

Japan is known for its efficient business infrastructure, world-class technology and stable economy, making it a popular destination for entrepreneurs from all over the world. If you’re based abroad but looking to start a business in Japan, the Limited Liability Company (LLC), or Godo Kaisha (合同会社), is often the simplest and most flexible structure to consider.

Here’s what you need to know on how to open an LLC in Japan as a non-resident or non-citizen.

What is a Godo Kaisha (合同会社)?

A Godo Kaisha (GK) is Japan’s version of an LLC. Introduced in 2006 to encourage entrepreneurship, it offers limited liability for its members, simplified governance and lower running costs compared to a Kabushiki Kaisha (KK), Japan’s traditional joint-stock company.

Unlike a KK, a GK does not require a board of directors, shareholders’ meetings or high upfront capital, making it an ideal structure for small businesses, startups and single-owner operations.

Can Non-Residents Register a GK in Japan?

Yes. A non-resident or non-citizen can fully own and operate a GK in Japan. However, there are a few key considerations and requirements that must be met.

Credit: Yumi Mini

Step-by-Step Guide to Opening a GK in Japan

1. Prepare a Registered Address in Japan

You must have a physical address in Japan for the company. This can be a commercial office, virtual office (in some cases) or even a residential address if permitted by local zoning laws. It cannot be a P.O. Box.

2. Appoint a Representative Member Living in Japan

At least one representative member must have a registered address in Japan. If you do not live in Japan, you’ll need to either:

Appoint a trusted individual who resides in Japan as the representative,

Or, use a legal representative service offered by many administrative scriveners or legal firms

3. Draft and Notarize the Articles of Incorporation

For a GK, notarization is not required—unlike a KK—making this step more cost-effective. The Articles of Incorporation must include:

Company name (in Japanese characters)

Business purpose

Location of the office

Member(s) and their contributions

Operational rules

4. Deposit Capital

There is no minimum capital requirement. Even ¥1 is technically sufficient, though a common range is between ¥500,000–¥1,000,000. The capital must be deposited into a Japanese bank account under the name of the member establishing the company. This is often a tricky step for non-residents and may require using a nominee or assistance from a legal firm.

5. Submit Registration Documents

File the necessary paperwork with the Legal Affairs Bureau (Houmu-kyoku, 法務局) in the area where your company is registered. Required documents typically include:

Articles of Incorporation

Signature/seal certificates

Notification of the company seal

Application for company registration

6. Obtain the Company Seal and Register It

Once your GK is registered, you must create a company seal (inkan, 印鑑) and submit it to the Legal Affairs Bureau. This seal will be required for most official documents, bank account openings and contracts.

7. Register for Taxes

You’ll need to notify the local tax office within two months of incorporation. You may also need to register for:

Consumption tax (if applicable)

Social insurance (if hiring employees)

Withholding tax and payroll registration

Optional: Open a Business Bank Account in Japan

Opening a Japanese business bank account can be one of the more challenging steps for non-residents, as most banks require the representative to visit in person and have a Japanese address. Specialized banking services for international entrepreneurs are growing but may involve higher fees.

Final Tips

Legal Support: Partnering with a bilingual administrative scrivener (gyosei shoshi) can smooth the process, especially if you do not speak Japanese

Visa Consideration: If you intend to live and work in Japan through your company, you’ll need a Business Manager visa. This has separate requirements, including office rental agreements and a higher capital threshold

Conclusion

Starting an LLC in Japan is entirely possible—even if you’re not a Japanese resident. With the right planning, a clear business plan and professional support, you can establish a Godo Kaisha and tap into one of the world’s most dynamic economies.