Japan remains the world's fourth-largest economy and a strategic gateway into the wider Asia-Pacific region. JETRO reported 2024 inward FDI stock of JPY53.3 trillion, up 4.5% year-on-year, with greenfield investment climbing 15.4% to USD31.6 billion. The market is open, but the paperwork is genuinely Japanese in its detail.
This guide covers entity choice, visa requirements, registration steps, and the compliance obligations that start the moment your company exists.
Key Takeaways
- Dutch citizens can own 100% of a Japanese company with no local director requirement
- Choose KK for credibility or GK for faster, lower-cost setup
- In-person management needs a Business Manager Visa (JPY30M capital, rules from Oct 2025)
- You can register a Dutch-owned company remotely without living in Japan
- Tax, social insurance, and banking duties start the day the company is incorporated
Two Paths for Dutch Entrepreneurs Entering Japan
Before touching paperwork, decide which path applies. Getting this wrong wastes months on visa applications you might not even need.
Path One: Relocating to manage the business yourself. Move to Japan and run day-to-day operations, and you will need a Business Manager Visa alongside company registration. This path suits founders building a Japan-based team from scratch.
Path Two: Opening a subsidiary managed locally. An established Dutch or EU company can open a Japanese subsidiary run by a locally authorised representative. No founder visa is needed, because you are not relocating to manage the entity.
Neither route benefits from a Netherlands-specific treaty. The 1912 Netherlands-Japan Commerce and Navigation Treaty, revived in 1953, still runs in the background of Dutch-Japanese relations.
Its practical benefit flows the other way: Japanese entrepreneurs get a residence route into the Netherlands, not the reverse. Dutch founders in Japan use the same framework as founders from anywhere else without a specific Friendship, Commerce and Navigation (FCN)-style treaty.
Business Structures in Japan: KK vs GK for Dutch Founders
Japan's Companies Act permits 100% foreign ownership. Dutch nationals face no nationality-based restriction on who can be a founder, shareholder, or director.
Kabushiki Kaisha (KK)
The KK is Japan's standard corporate form, roughly equivalent to a Dutch NV or a closely held stock company. It carries more credibility with Japanese banks, enterprise clients, and investors, but it comes with more procedural weight:
- Articles of Incorporation require notarisation (JPY 30,000–50,000, depending on capital band)
- Capital must be deposited into a Japanese bank account before registration
- Governance follows a shareholder/director structure familiar to European investors
Godo Kaisha (GK)
The GK is closer to a Dutch BV (limited liability company). It's the pragmatic choice for remote incorporation:
- No notarisation requirement for the Articles of Incorporation
- No pre-registration bank deposit — the representative member simply issues a contribution receipt
- Lower registration tax and fewer moving parts for a non-resident founder
| Factor | KK | GK |
|---|---|---|
| Registration tax | JPY 150,000 minimum | JPY 60,000 minimum |
| Notarisation | Required | Not required |
| Bank deposit before filing | Required | Not required (receipt only) |
| Governance | Shareholder/director | Member-managed |
| Tax treatment | Identical | Identical |
| Business Manager Visa eligible | Yes | Yes |
Both structures receive identical Japanese tax treatment and qualify equally for a Business Manager Visa. For Dutch solo founders and SMEs prioritising speed, a GK is usually the better first move. Reserve the KK for founders planning to raise institutional capital or land contracts with large Japanese enterprises that expect the more established structure.
Visa Requirements for Dutch Nationals Managing a Business in Japan
Here's the distinction that trips up a lot of Dutch founders: incorporating in Japan doesn't require you to live there. Managing the business from inside Japan does. That's where the Business Manager Visa comes in.
The Business Manager Visa (post-October 2025 rules)
Japan's Immigration Services Agency tightened this visa significantly, effective 16 October 2025. Current requirements include:
- JPY30 million minimum capital (up sharply from the previous threshold)
- At least one full-time employee holding an authorised work status
- Three years of management experience, or a relevant master's/doctoral degree
- Japanese proficiency equivalent to JLPT N2 or above
- A dedicated physical office (home offices are, in principle, not accepted)
- A business plan reviewed by a certified expert such as an SME consultant, CPA, or tax accountant
Existing visa holders get transitional treatment through October 2028, after which the new standards apply across the board.
If you don't yet meet the JPY30 million threshold
Two common bridges while you build toward full Business Manager eligibility:
- Startup Visa — up to two years of Designated Activities status, reviewed via an approved municipal or private organisation (programmes currently run in Tokyo, Osaka, Fukuoka, and several other regions)
- Highly Skilled Professional Visa — points-based route (70 points for preferential treatment); can shorten permanent residency to roughly one to three years for founders with strong academic or professional credentials
Treaty asymmetry: Dutch citizens receive no treaty-based concession here. The reverse is true: under the 1912 Netherlands-Japan treaty, Japanese entrepreneurs get preferential residence terms in the Netherlands (a two-year self-employed permit against a EUR4,500 investment threshold). Dutch founders in Japan don't get a mirrored benefit.
Step-by-Step: Registering a Company in Japan from the Netherlands
Non-resident Dutch founders can register a Japanese company remotely. The path below covers both KK (Kabushiki Kaisha) and GK (Godo Kaisha) from name choice through banking.
- Name, articles, and seal. Choose your company name, draft Japanese Articles of Incorporation, and order a company seal. Non-resident Dutch founders also need notarised signature certificates, apostilles, and certified Japanese translations arranged from the Netherlands.
- Notarise the articles (KK only). Budget JPY 30,000-50,000 for notarisation. GK founders skip this step entirely.
- Deposit or document capital. A KK needs a Japanese bank account funded before filing, often via a resident representative service. A GK only needs a contribution receipt from the representative member, which is far more practical if you are not physically in Japan.
- File with the Legal Affairs Bureau. Pay registration tax (JPY 150,000 minimum for KK, JPY 60,000 for GK). JETRO's fast-track service can issue a Certificate of Incorporation in about three business days for qualifying online filings. Ordinary processing takes closer to two weeks.
- Complete post-registration notices. Notify the tax office within two months of establishment. Register for social insurance within five days of hiring your first employee.
- Open a corporate bank account. Foreign-owned entities often face extra scrutiny at major banks. Regional banks and challenger banks are usually a faster route for a newly incorporated foreign-owned GK or KK.
Ongoing Compliance and Professional Support
Registration is the beginning, not the finish line. Recurring obligations kick in immediately:
- Monthly bookkeeping maintained under Japanese accounting standards
- Corporate tax filings (rates vary by bracket, company size, and local municipality)
- Consumption tax at the standard 10% rate
- Social insurance contributions once you employ staff
Certain sectors carry licensing requirements on top of incorporation itself: food service, financial services, and import/export among them, regardless of how your entity is structured.
For a Dutch company running operations in the Netherlands while standing up a Japanese entity, the practical challenge is coordination: two tax authorities, two accounting standards, two languages, and one set of quarterly board decisions.
VJM Global covers entity formation, tax, and compliance in 16+ directly serviced markets, including the Netherlands. Through its Employer of Record network, it also extends payroll and hiring support to 100+ countries—support built for multi-jurisdiction reporting when you expand from one market into another.
Frequently Asked Questions
Can a foreigner start a business in Japan?
Yes. Japan's Companies Act permits 100% foreign ownership with no nationality restriction on founders or shareholders. Since 2015, directors have not been required to reside in Japan either.
Do Dutch citizens get any special treaty benefits for starting a business in Japan?
No. There's no Netherlands-Japan entrepreneur treaty comparable to the US-Japan FCN Treaty. Dutch founders follow the standard KK/GK incorporation process and the general visa framework.
Can I register a Japanese company without living in Japan?
Yes, remote incorporation is legal. A Godo Kaisha (GK) is generally more practical for non-residents, since it skips the pre-registration bank deposit requirement that a KK demands.
What visa does a Dutch entrepreneur need to manage a business in Japan?
Personally managing a company from within Japan requires a Business Manager Visa, which now requires JPY30 million in capital under October 2025 rules. The Startup Visa is an interim option below that threshold.
How much does it cost to set up a company in Japan?
Registration tax alone runs from roughly JPY100,000 for a GK to JPY250,000+ for a KK, excluding capital contributions and any professional or notarisation fees.
What taxes will my Japan-registered company pay?
Combined corporate tax typically falls in the 21-34% range depending on income bracket, company size, and local rates, plus 10% consumption tax on applicable sales.
