The statutory capital floor is not an operating budget. Check registration, professional and premises costs; immigration capital conditions are separate.
About 30.6% combined · lower SME rates on the first ¥8m
Details
The combined rate for larger companies is 30.64% for years starting from 1 April 2026. Qualifying SMEs can use a 15% national rate on the first ¥8 million; large-parent subsidiaries can be excluded.
Ecosystem evidence, not proof of demand for your product. Validate customers, competition and economics before investing.
METI identifies Japan’s market, infrastructure and skilled workforce as reasons for foreign investment. Validate local purchasing needs and the partnerships needed to reach customers.
A branch is not a separate entity, so the parent carries its debts, and it needs a representative residing in Japan. A KK or GK subsidiary confines liability to the investment and is easier to restructure or fund later.
A representative office can carry out market research, information gathering, purchasing and publicity, but cannot make sales. It ordinarily cannot open a bank account or lease property in its own name.
Both structures separate the subsidiary’s liability from its investors. Select the governance and share-transfer arrangements that fit your owners and funding plans.
New Business Manager applications require ¥30 million capital and an eligible full-time employee. The applicant or staff needs the specified Japanese proficiency; the applicant needs a relevant postgraduate qualification or three years’ management experience.
JETRO distinguishes a representative office, branch and subsidiary as ways to establish a Japanese presence. Their commercial powers, registration and expatriate residence requirements differ.
The account is opened after company registration and tax notifications. Each bank screens the application and may refuse it, so prepare company profile documents in advance.
JETRO gives this as a guide to establishing a company or branch. The timetable depends on preparation and the required procedures; allow for the actual registration and onboarding process.
Information on this page is compiled from official and public sources, linked and dated next to each item. It is general information, not legal, tax or financial advice, and rules change. Please confirm with the source or a qualified adviser before acting. ExpandUs Global accepts no liability for decisions made using this information.
