Starting a company takes a few hundred thousand yen
- Zero yen
- A few hundred thousand yen
- At least $9,100
The answer is 2, a few hundred thousand yen.
People often say “you can now start a stock company for zero yen!” but this leaves out the whole matter of administrative fees. The paperwork plus the registration license tax together should come to over $1,800. My guess is the reasoning goes something like this: it would be a problem if people could crank out companies on a whim for literally zero yen, so the system is set up to make you come at it with some degree of resolve.
This amount varies by country. In Germany, for instance, it seems to run around 25,000 euros. That’s steep. The “$9,100”-level capital mentioned in option 3 does bring real benefits if you can manage to put it up, but you can just as well consider that question later, not necessarily at the moment of founding. So the amount you actually need to get started is a few hundred thousand yen. It’s fair to say roughly $1,800 to $2,700.
A GK (limited liability company) can be established more cheaply than a KK (stock company), but it differs from a KK in various respects, so study that properly on your own.
Originally published in Japanese at https://clazytech.com/2021/07/548/. Translated with LLM assistance and reviewed before publication.