Setting up a business
There are several types of business entity in Japan as below.
- Gomei Kaisha (Unlimited Partnership)
- Goshi Kaisha (Limited Partnership)
- Godo Kaisha (Limited Liability Company)
- Yugen Sekinin Jigyo Kumiai (Limited Liability Partner)
- Chuzai Jimusho (Representative Office)
- Kabushiki Kaisha (Company Limited)
Kabushiki Kaisha or KK is the most common business entity in Japan. In the past, it requires at least 10 million Yen capital, but the capital requirement is abolished as a result of major change in Japanese Corporate Law in 2005. Technically, you can set up a business in Japan for 1 yen capital now. Godo Kaisha (LLP) is another popular business entity for business starters as it is relatively inexpensive to set up and easier to manage as responsibility of the LLC membership is limited and no board meeting is necessary. However, LLC is not a public entity so KK is known to be more trustworthy in the business world.
Foreigners who have visas with no limit in work status such as permanent resident and Spouse of Japanese nationals can set up and manage any business just like Japanese. Those who retain investor/business manager visa are also eligible to manage a business in Japan although there are some requirement to obtain the investor/business manager visa such as at least 5 million Yen capital to start a business. It is pretty complicated for foreigners to set up a business in Japan. Starting a restaurant with home country food is one of the most popular business among foreigners, but they need to get an investor/business manager visa, open a bank account to prove sufficient capital, permit to open and run a restaurant and file article of corporation in Japanese with Office of a Notary.
Surprisingly, one of toughest thing is to get a proof of capital from the bank as most Japanese banks are hesitant to issue such a proof to new customer. You many want find a local partner who can take care of all these hurdles to start your business in Japan. It is such an irony that Japanese government has been running a campaign for "Invest in Japan", but the reality is completely otherwise and very difficult for those who wants to enter Japanese market. 
