The “Business Manager Visa” is obtained by foreign nationals who establish and operate a business in Japan. While it is common to choose a “joint-stock company (Kabushiki Kaisha)” as the company structure, a “Godo Kaisha (GK)” is also a viable option.
Compared to a joint-stock company, a Godo Kaisha is easier to establish and operate, although it is still less well-known.
On this page, we explain the key points for establishing a Godo Kaisha and obtaining a Business Manager Visa.
- Business Manager Visa and Company Structure
- What Is a Godo Kaisha (Japanese LLC)?
- Comprehensive Comparison: GK vs. KK
- Process from Establishing a GK to Obtaining a Business Manager Visa
- Conclusion
Business Manager Visa and Company Structure
The “Business Manager” visa is a type of work visa granted to foreign nationals who reside in Japan to operate a business.
The most common way to obtain this visa is to establish a company in Japan, assume a managerial role (such as Representative Director or Representative Member), and engage in business management.
There is no legal requirement that the company must be a joint-stock company. Therefore, you can obtain a Business Manager Visa even if you establish a Godo Kaisha (GK).
Although most companies in Japan are joint-stock companies, a Godo Kaisha is not treated unfavorably during the visa screening process.
However, the legal rules under the Companies Act differ between joint-stock companies and Godo Kaisha. Each has its own advantages and disadvantages, so it is wise to choose the structure that best suits your individual circumstances (business type, financial plan, future outlook, etc.).
What Is a Godo Kaisha (Japanese LLC)?
A Godo Kaisha is a relatively new type of company established under the 2005 revision of the Companies Act.
Due to its characteristics, it is generally considered suitable for small teams. Since the system is modeled after the U.S. LLC (Limited Liability Company), it is often referred to as a “Japanese LLC.”
However, note that its tax treatment and other aspects are not identical to those of a U.S. LLC.
While it may seem suitable only for small businesses, it is not inherently unsuitable for large-scale operations. In fact, the Japanese entities of Google and Amazon also adopt the Godo Kaisha structure.
Comprehensive Comparison: GK vs. KK
In simple terms, “a Godo Kaisha is cheaper and easier to operate than a joint-stock company, but less suited for large-scale expansion.”
| Joint-Stock Company (KK) | Godo Kaisha (GK) | |
|---|---|---|
| Registration Tax at Incorporation | 150,000 yen | 60,000 yen |
| Articles of Incorporation Certification | Required
Certification fee: 50,000 yen Stamp duty: 40,000 yen |
Not required |
| Management Title | Director | Member |
| Representative | Representative Director | Representative Member |
| Company Owners (Investors) | Shareholders
(Ownership and management are separate) |
Members
(Owners = Managers) |
| Decision-Making | Based on shareholding ratio | Equal regardless of capital contribution |
| Term of Officers | 2–10 years (depending on structure) | None |
| Financial Disclosure | Required | Not required |
| Corporate Tax Rate | Same | Same |
| Social Insurance Enrollment | Required | Required |
| Social Credibility | High | Sometimes lower than KK |
1. Incorporation Costs
A Godo Kaisha offers the advantage of lower initial setup costs.
Articles of Incorporation Certification
When establishing a joint-stock company, certification of the articles of incorporation by a notary is mandatory. This involves a certification fee (50,000 yen) and stamp duty (40,000 yen for paper documents; waived if electronically certified).
In contrast, a Godo Kaisha does not require this certification, which reduces initial costs.
Registration Tax
This is the tax paid to the Legal Affairs Bureau when registering the company. Previously, when a Business Manager Visa could be obtained with as little as 5 million yen in capital, a GK was cheaper. However, after the minimum capital was raised to 30 million yen, both KK and GK now pay the same rate (0.7% of capital).
For example, with a capital of 30 million yen, both KK and GK pay 210,000 yen in registration tax.
2. Operating Costs and Flexibility
There are also differences in post-incorporation costs and operational flexibility.
Term of Officers
Directors of a joint-stock company have a fixed term (typically 2–10 years), requiring periodic registration of changes, which incurs costs.
In contrast, a Godo Kaisha has no fixed term for its members, reducing ongoing costs.
Financial Disclosure Requirements
Joint-stock companies are required to publicly disclose their financial statements annually.
Godo Kaisha companies are not subject to this requirement.
Operational Flexibility
A Godo Kaisha has fewer regulatory requirements under the Companies Act (e.g., no need for a board of directors), allowing for simpler and more flexible management.
3. Ownership, Management, and Decision-Making
There are significant differences in ownership and governance.
Terminology and Structure
In a joint-stock company, management is handled by “directors” (with a “representative director”), and investors are “shareholders,” allowing separation of ownership and management.
In a Godo Kaisha, both managers and investors are called “members” (with a “representative member”). In principle, owners (investors) = managers.
Decision-Making
In a joint-stock company, voting power depends on shareholding.
In contrast, a Godo Kaisha generally operates on a one-member, one-vote basis regardless of capital contribution.
4. Business Expansion (Fundraising)
A Godo Kaisha has limitations when it comes to scaling.
A joint-stock company can raise large amounts of capital from investors by issuing shares (e.g., IPOs).
A Godo Kaisha does not have an equivalent mechanism, making large-scale expansion more difficult compared to a joint-stock company.
5. Taxation and Social Insurance
There is no difference between the two in terms of taxes and social insurance.
- Corporate tax rate: Same
- Social insurance enrollment: Mandatory for both
This is a major difference from U.S. LLCs, which may allow pass-through taxation.
6. Social Credibility
As a relatively new company structure, a Godo Kaisha is still less recognized in Japan.
As a result, it may sometimes be perceived as less credible than a joint-stock company by business partners or financial institutions.
Process from Establishing a GK to Obtaining a Business Manager Visa
Here is the typical process and timeline when engaging TOUCH Law Firm, from establishing a Godo Kaisha to obtaining a Business Manager Visa.
Phase 1: Preparation for Company Establishment (Approx. 1–2 weeks)
① Initial consultation between the client (visa applicant) and the administrative scrivener.
② The client completes a questionnaire to determine key company details, including company name, registered address, business objectives, capital, initial members, and fiscal year.
③ The administrative scrivener conducts checks on the company name and business purposes.
④ The client prepares the company seal.
⑤ Preparation of personal seals and seal registration certificates for members.
Phase 2: Company Incorporation Procedures (Approx. 3–4 weeks)
⑥ The administrative scrivener prepares the necessary documents, including the articles of incorporation (about 5 days).
⑦ Documents are reviewed and signed by the client.
⑧ The client transfers the capital to the designated account.
⑨ Once all documents and payments are completed, a judicial scrivener files the company registration with the Legal Affairs Bureau.
⑩ The review process takes about two weeks, after which the company is officially established.
Phase 3: Business Manager Visa Application (Approx. 2.5–3.5 months)
After the company is established, the visa application process begins.
⑪ The client and administrative scrivener collect necessary documents, such as the company registry and office lease agreement.
⑫ The administrative scrivener prepares the visa application documents and the crucial business plan (about 2–3 weeks).
⑬ The application is submitted to the Immigration Bureau.
⑭ The review process takes approximately 2–3 months.
⑮ Once approved, a residence card is issued, and the Business Manager Visa is granted.
Conclusion
As explained above, a Godo Kaisha offers advantages in terms of ease of establishment and operation compared to a joint-stock company.
However, the process to obtain a visa is lengthy. Even if everything proceeds smoothly, it generally takes about 4–5 months from starting company setup to obtaining the Business Manager Visa.
Additionally, the process involves multiple steps and authorities, such as company registration and visa application. Preparing documents—especially the business plan—requires specialized knowledge and can be challenging without experience.
If you are planning to obtain a Business Manager Visa starting from company establishment, we recommend consulting an experienced professional to ensure a smooth and error-free process.
