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How much capital should I put in, and how is it actually paid?
Three factors drive the capital amount: how much your company needs for day-to-day operations, whether your industry has minimum capital requirements, and the credibility the figure gives your company on paper — the capital amount appears on the company's certified registry record, visible to business partners and banks.
Legally, the minimum capital in Japan is just 1 yen, and it must actually be paid in.
Before you settle on a number, a few thresholds are worth knowing.
The first sits at roughly ¥8.58 million. The registration license tax at incorporation is calculated as 0.7% of capital, with a minimum of ¥60,000. Once your capital exceeds roughly ¥8.58 million, the tax starts rising with the capital at 0.7% (for example, ¥70,000 at ¥10 million of capital). Our plan fees assume the minimum tax, so if your capital will exceed ¥8 million, please flag it early — the additional registration tax raises the total cost, and we set this out in your quote.
The second threshold is ¥10 million. A new company capitalized at ¥10 million or more is a consumption-tax-paying business from its first year. Below ¥10 million, a new company is in principle exempt from consumption tax for its first two fiscal years (with exceptions — for example, if both taxable sales and salary payments exceed ¥10 million in the first six months, or if the company registers as a qualified invoice issuer). A company capitalized at ¥10 million or below also stays in the lowest bracket of the fixed annual local corporate tax.
Some licensed industries set their own capital floors — for example, a construction business license generally requires ¥5 million or more of own capital, and a worker-dispatch business requires ¥20 million or more per office. And if a founder plans to apply for the Business Manager residence status (keiei-kanri visa), an investment of ¥5 million or more is a common practical benchmark — please consult a Gyosei-shoshi (administrative scrivener) for your specific case.
As for the paid-in step: when forming a Godo Kaisha (GK), the payment can be completed by methods such as cash delivery. We verify documentation showing that the capital genuinely exists and can be paid, and then have the client sign the designated payment evidence to complete the procedural payment. This means you are not forced to remit the funds from overseas into a Japanese bank account at the formation stage.
That said, we strongly recommend that once a Japanese bank account is opened in the company's name, you transfer the capital into that account, so the company's actual finances match its registered record.
For the specific tax implications of your capital amount, please consult a tax accountant.
Legally, the minimum capital in Japan is just 1 yen, and it must actually be paid in.
Before you settle on a number, a few thresholds are worth knowing.
The first sits at roughly ¥8.58 million. The registration license tax at incorporation is calculated as 0.7% of capital, with a minimum of ¥60,000. Once your capital exceeds roughly ¥8.58 million, the tax starts rising with the capital at 0.7% (for example, ¥70,000 at ¥10 million of capital). Our plan fees assume the minimum tax, so if your capital will exceed ¥8 million, please flag it early — the additional registration tax raises the total cost, and we set this out in your quote.
The second threshold is ¥10 million. A new company capitalized at ¥10 million or more is a consumption-tax-paying business from its first year. Below ¥10 million, a new company is in principle exempt from consumption tax for its first two fiscal years (with exceptions — for example, if both taxable sales and salary payments exceed ¥10 million in the first six months, or if the company registers as a qualified invoice issuer). A company capitalized at ¥10 million or below also stays in the lowest bracket of the fixed annual local corporate tax.
Some licensed industries set their own capital floors — for example, a construction business license generally requires ¥5 million or more of own capital, and a worker-dispatch business requires ¥20 million or more per office. And if a founder plans to apply for the Business Manager residence status (keiei-kanri visa), an investment of ¥5 million or more is a common practical benchmark — please consult a Gyosei-shoshi (administrative scrivener) for your specific case.
As for the paid-in step: when forming a Godo Kaisha (GK), the payment can be completed by methods such as cash delivery. We verify documentation showing that the capital genuinely exists and can be paid, and then have the client sign the designated payment evidence to complete the procedural payment. This means you are not forced to remit the funds from overseas into a Japanese bank account at the formation stage.
That said, we strongly recommend that once a Japanese bank account is opened in the company's name, you transfer the capital into that account, so the company's actual finances match its registered record.
For the specific tax implications of your capital amount, please consult a tax accountant.