Japan (JP)
Japan is one of the world's most captivating destinations for expats — a country where ancient temple culture and ultra-modern technology coexist seamlessly.
Capital: Tokyo
Region: Asia
Language: Japanese
Currency: JPY (¥)
Cost of living: Expensive (index 72)
Emergency: 110 (police) / 119 (fire and ambulance)
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Business Setup
Start a business or go freelance in Japan.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 1. Confirm your visa status allows self-employment — most work visas restrict you to the employer and activity stated on the visa; the Business Manager visa or spouse/HSP (Highly Skilled Professional) visa typically permits freelancing.
- 2 2. File an Opening Notification (開業届 / Kaigyō Todoke) at your local Tax Office (税務署) within 1 month of starting business — free, can also be filed online via e-Tax (e-tax.nta.go.jp).
- 3 3. At the same time, file for Blue Form Tax Return status (青色申告承認申請書 / Aoiro Shinkoku Shōnin Shinseisho) — allows a ¥650,000 special deduction (¥550,000 without e-filing) and the ability to carry losses forward 3 years.
- 4 4. Enrol in National Health Insurance (国民健康保険 / NHI) at your ward office within 14 days of losing employer coverage — monthly premium based on previous year's income.
- 5 5. Enrol in National Pension (国民年金 / Kokumin Nenkin) at your ward office — fixed monthly contribution ¥16,980/month in 2026.
- 6 6. Register for Consumption Tax (消費税 / Shōhizei) at the Tax Office if annual revenue exceeds ¥10M. Also consider voluntary registration as a Qualified Invoice Issuer (適格請求書発行事業者) under the Invoice System (インボイス制度) — essential for B2B clients who need to claim input tax credit.
- 7 7. Open a separate business bank account (Shinsei Bank, SBI Sumishin Net Bank, and GMO Aozora Net Bank are expat-friendly).
- 8 8. File your annual tax return (確定申告 / Kakutei Shinkoku) by 15 March each year via e-Tax or at your local Tax Office.
Tax registration
National Tax Agency (NTA) — file at your nearest Tax Office (税務署). Free and straightforward. You will receive a Taxpayer Identification Number (マイナンバー / My Number) which is used for all filings. For Consumption Tax registration, file Form 1(1) at the Tax Office. All filings available electronically via e-Tax (e-tax.nta.go.jp).
VAT threshold
¥10,000,000 annual revenue (Consumption Tax exemption threshold — 免税点). Businesses below this threshold are exempt from charging Consumption Tax. Under the Invoice System (インボイス制度) introduced October 2023, freelancers billing corporate clients should register as Qualified Invoice Issuers even below the ¥10M threshold — otherwise B2B clients cannot claim input tax credit on payments to you.
Invoicing
Since October 2023, registered businesses must issue Qualified Invoices (適格請求書 / Tekikaku Seikyūsho) to B2B clients: registration number (T + 13 digits), applicable tax rates (8% food/10% standard), tax amount by rate, and total amounts by tax rate. Invoices to private individuals do not require the qualified invoice format. All invoices should include date, description, amount, and your business name.
Social security
Freelancers self-enrol in National Health Insurance (国民健康保険) and National Pension (国民年金). NHI premium: typically 6–11% of previous year's income (calculated by your ward office based on your annual tax return). National Pension: ¥16,980/month (2026), fixed regardless of income. iDeCo (individual defined contribution pension) contributions reduce taxable income — strongly recommended for freelancers. Combined annual social insurance cost at ¥6M income: approximately ¥750,000–900,000.
💡 The Invoice System (インボイス制度) since October 2023 is a major compliance consideration — freelancers billing Japanese corporate clients should register as Qualified Invoice Issuers; clients will otherwise be unable to fully claim input Consumption Tax credit and may reduce your rates or switch suppliers. Blue Form return (青色申告) is strongly recommended — the ¥650,000 special deduction and 3-year loss carryforward make it significantly more tax-efficient than the White Form. Expats on work visas should confirm with their immigration lawyer before changing employment status.
🏢 Business Structures
Kojin Jigyonushi · 個人事業主 (Kojin Jigyonushi)
Sole Proprietor / Self-Employed Individual
None
Min. capital
1 day — submit Kaigyō Todoke (開業届) at your local Tax Office (税務署)
Setup time
Liability: Unlimited personal liability
Setup cost: ¥0 (free)
Best for: Freelancers, consultants, small business operators, tradespeople. Simplest structure — tax filed annually via Kakutei Shinkoku (確定申告). Blue Form return (青色申告) allows ¥650,000 special deduction with proper bookkeeping.
Gōdō Kaisha (GK) · 合同会社 (Gōdō Kaisha)
Limited Liability Company (LLC)
¥1 (in practice, ¥100,000–500,000 recommended for bank account opening and credibility)
Min. capital
1–2 weeks for registration at the Legal Affairs Bureau (法務局)
Setup time
Liability: Limited to capital contribution; members not personally liable for company debts
Setup cost: ¥60,000–120,000 (registration tax ¥60,000 + notary/administrative costs)
Best for: Startups, small companies, foreign entrepreneurs wanting limited liability without the cost of a KK. Used by Amazon Japan and Apple Japan as their Japanese legal structure. Lower ongoing compliance than KK. Does not issue shares — not suitable if you plan to raise VC funding.
Kabushiki Kaisha (KK) · 株式会社 (Kabushiki Kaisha)
Joint-Stock Company / Corporation
¥1 (no minimum since 2006; ¥1M–10M recommended for bank account opening and credibility with Japanese corporate clients)
Min. capital
3–4 weeks (articles of association notarization + Legal Affairs Bureau registration)
Setup time
Liability: Limited to capital contribution
Setup cost: ¥200,000–400,000 (articles of association notarization ¥50,000–100,000 + registration tax ¥150,000 + administrative costs)
Best for: Businesses seeking maximum credibility in the Japanese market. Required to issue shares — suitable for VC investment, going public, and large enterprise contracts. Annual corporate tax filing (法人税申告) required. Higher compliance burden than GK but preferred by Japanese corporate clients and banks.
Gomei Kaisha / Goshi Kaisha · 合名会社 / 合資会社
General Partnership / Limited Partnership
None
Min. capital
1–2 weeks
Setup time
Liability: Unlimited (Gomei Kaisha) / Mixed unlimited and limited by investment amount (Goshi Kaisha)
Setup cost: ¥60,000 registration tax + administrative costs
Best for: Rare in practice. Gomei Kaisha (合名会社) is a general partnership where all members bear unlimited liability. Goshi Kaisha (合資会社) has both unlimited and limited partners. Almost never used by modern businesses — the GK achieves similar flexible governance with full limited liability at the same registration cost.
Gaikoku Kaisha no Shiten (支店) · 外国会社の日本支店 (Gaikoku Kaisha no Nihon Shiten)
Branch of a Foreign Company
None (backed by parent company capital)
Min. capital
3–6 weeks (Legal Affairs Bureau registration + notarization of foreign documents)
Setup time
Liability: Parent company is fully liable for all branch obligations
Setup cost: ¥90,000 registration tax + ¥50,000–150,000 in notarization and legal fees for translated parent company documents
Best for: Foreign companies wanting a Japanese business presence without incorporating a separate legal entity. Must designate a Japan-based representative and register at the Legal Affairs Bureau. Subject to Japanese corporate tax on Japan-source income. Less commonly used than forming a GK or KK — a local entity is generally preferred for credibility with Japanese partners and banks.
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