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TOOL INTRODUCTION · PUBLISHED 2026-05-13Updated 2026-05-13

Company Formation Cost FAQ: 15 Questions Answered

Answers to the 15 most common questions about company formation costs in Japan. Registration tax, entity types, capital rules, and more. Free calculator included. When you are about to invest your savings into forming a company, you want certainty. Vague answers are not acceptable when real money is on the line.
Table of Contents
  1. Every Cost Question Founders Ask — Answered
  2. The Questions
  3. 1. What is the minimum cost to form a company in Japan?
  4. 2. Why is a KK more expensive to form than a GK?
  5. 3. Can I really form a company with ¥1 in capital?
  6. 4. What is electronic articles of incorporation and does it save money?
  7. 5. How is the registration tax calculated?
  8. 6. At what capital amount does the percentage exceed the minimum?
  9. 7. Are there any annual fees to maintain a company?
  10. 8. Do formation costs differ by prefecture?
  11. 9. What professional fees should I expect on top of government fees?
  12. 10. Can I deduct formation costs from my taxes?
  13. 11. What if I want to change my company name after formation?
  14. 12. Do I need a company seal (実印) and how much does it cost?
  15. 13. What is the difference between 登録免許税 and 印紙税?
  16. 14. Can I form a company entirely online?
  17. 15. How do I know my cost estimate is accurate?
  18. Use the Calculator to Get Your Specific Number
  19. How It Works
  20. Key Benefits
  21. FAQ
  22. Try It Now — Free, No Signup Required
  23. What's Next?

Every Cost Question Founders Ask — Answered

When you are about to invest your savings into forming a company, you want certainty. Vague answers are not acceptable when real money is on the line.

Below are the 15 questions founders most frequently ask about company formation costs in Japan. Each answer references the applicable Japanese law so you can verify the information independently.

The Questions

1. What is the minimum cost to form a company in Japan?

The absolute minimum for a Godo Kaisha (GK) with electronic articles of incorporation is ¥60,000 — the minimum registration tax under the Registration and License Tax Act. For a Kabushiki Kaisha (KK), the minimum is approximately ¥200,000 (¥150,000 registration tax + approximately ¥30,000-¥50,000 notary fee).

2. Why is a KK more expensive to form than a GK?

Two reasons: the KK minimum registration tax is ¥150,000 versus ¥60,000 for GK, and KK articles of incorporation must be notarized (approximately ¥30,000-¥50,000), while GK articles do not require notarization under the Companies Act.

3. Can I really form a company with ¥1 in capital?

Yes. Since the 2006 revision of the Companies Act, the minimum capital requirement was eliminated. However, you still pay the minimum registration tax regardless of capital amount.

4. What is electronic articles of incorporation and does it save money?

Electronic articles of incorporation (電子定款) are digitally signed rather than printed on paper. Paper articles require ¥40,000 in revenue stamps under the Stamp Tax Act (印紙税法). Electronic articles are exempt. The saving is exactly ¥40,000.

5. How is the registration tax calculated?

The registration tax is 0.7% of stated capital, or the statutory minimum (¥150,000 for KK, ¥60,000 for GK), whichever is greater. This is defined in the Registration and License Tax Act's appended rate table.

6. At what capital amount does the percentage exceed the minimum?

For KK: approximately ¥21,430,000 (where 0.7% exceeds ¥150,000). For GK: approximately ¥8,572,000 (where 0.7% exceeds ¥60,000).

7. Are there any annual fees to maintain a company?

The Companies Act does not impose annual maintenance fees at the Legal Affairs Bureau. However, you must file a change registration whenever company details change (officer terms, address, capital changes), and each change registration carries its own registration tax. Additionally, KK companies must file a deemed re-registration (みなし解散防止) at least once every 12 years for officers.

8. Do formation costs differ by prefecture?

The mandatory government fees (registration tax, notary fees, stamps) are uniform nationwide. The Legal Affairs Bureau and notary offices follow the same fee schedules regardless of location.

9. What professional fees should I expect on top of government fees?

If you engage a Gyoseishoshi or shiho-shoshi (司法書士), professional fees typically range from ¥50,000 to ¥150,000 or more, depending on scope and complexity. This is separate from the mandatory government fees.

10. Can I deduct formation costs from my taxes?

Formation costs (創立費) are treated as deferred assets under Japanese accounting standards and can be amortized over five years. Consult a tax accountant (税理士) for your specific situation.

11. What if I want to change my company name after formation?

A name change requires a change registration at the Legal Affairs Bureau. The registration tax for a company name change is ¥30,000 under the Registration and License Tax Act.

12. Do I need a company seal (実印) and how much does it cost?

A company seal is required for registration at the Legal Affairs Bureau. The seal itself typically costs ¥5,000-¥30,000 depending on material and quality. This is not a government fee but a practical necessity.

13. What is the difference between 登録免許税 and 印紙税?

Registration and license tax (登録免許税) is paid when you register your company at the Legal Affairs Bureau. Stamp tax (印紙税) is paid on certain documents, including paper articles of incorporation. They are separate taxes under separate laws.

14. Can I form a company entirely online?

As of current regulations, company registration requires submission to the Legal Affairs Bureau. Online submission is available through the Legal Affairs Bureau's online system, though some steps (such as seal registration) may still require in-person procedures depending on the jurisdiction.

15. How do I know my cost estimate is accurate?

Use a tool that references specific Japanese statutes rather than providing approximations. MmowW's Cost Calculator shows every fee with its legal basis, so you can cross-reference against the actual law.

Use the Calculator to Get Your Specific Number

The answers above cover general rules. Your specific costs depend on your entity type, capital amount, and choices about electronic vs. paper filing.

How It Works

  1. Open the calculator — no signup needed
  2. Select KK or GK
  3. Enter your planned capital
  4. Review your itemized, legally-referenced breakdown

Use our free tool to check your compliance instantly.

Try it free →

Key Benefits

FAQ

Q: Where can I find the actual text of the Registration and License Tax Act?

A: The Act is published on the e-Gov portal (e-Gov法令検索) maintained by the Japanese government. MmowW references these primary sources to ensure accuracy.

Q: Do these costs apply to foreign companies establishing a Japan branch?

A: Branch office registration (外国会社の支店設置登記) has a separate fee structure under the Registration and License Tax Act. The registration tax for a foreign company branch is ¥90,000.

Q: Will MmowW notify me if formation fees change?

A: Yes. MmowW monitors Japanese legislative developments. If the Registration and License Tax Act or notary fee schedules are amended, the calculator is updated accordingly.

Try It Now — Free, No Signup Required

Get your personalized cost breakdown — every fee, every legal reference:

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What's Next?

Questions answered. Costs calculated. Now it is time to file. MmowW Scribe guides every step from articles of incorporation to completed registration.

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Takayuki Sawai
Gyoseishoshi
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Important disclaimer: MmowW is not a legal firm or a certified public accountant office. The content above is educational guidance distilled from primary regulatory sources including Japanese law. Final responsibility for compliance with the Companies Act, Commercial Registration Act, or any other applicable requirement rests with the business operator and qualified professionals. Always verify with primary sources.

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