New Corporate Incorporations in Japan Reach Record 156,000 in 2025, Senior Entrepreneurship Hits All-Time High

Teikoku Databank has conducted a survey on new corporations established nationwide in 2025, based on its corporate database and registration information.

### SUMMARY A total of 156,525 new corporations were established in 2025 (up 1.8% from the previous year), marking the third consecutive year of growth. This figure surpassed 2024's 154,000 to reach a new record since 2000. Compared to 126,000 a decade ago in 2015, the annual number of establishments has increased 1.25 times. The doors to entrepreneurship are opening for diverse generations, including retirees, leading to a steady increase in new market entrants.

### New Corporations in 2025: Record 156,000 Nationwide While the establishment of 'Kabushiki Kaisha' (Joint-stock companies) has been on a decline since peaking in 2023, there was an increase in 'Godo Kaisha' (LLCs), which offer low costs and simpler procedures, as well as 'Shadan Hojin' (Associations) often used for welfare businesses. The decline in joint-stock companies may be due to the end of a surge in incorporations driven by the introduction of the invoice system in 2023, as well as shifting needs toward LLCs.

The number of new corporations was 2.00 times higher than the combined total of business closures/dissolutions (67,949, down 1.6%) and bankruptcies (10,261, up 3.6%) in 2025.

### Expanding 'Senior Entrepreneurship': Average Age Hits Record 48.9 The average age of founders at the time of incorporation reached a record high of 48.9 years (preliminary value) in 2025, up 1.2 years from 47.7 in the previous year. The age of those starting or incorporating businesses has been rising rapidly in recent years.

- **40s:** Remained the largest group at 29.1%, but the ratio decreased. - **30s:** Continued to decline to 18.8%. - **20s & Below:** Fell to 5.0%, lower than during the COVID-19 pandemic.

Conversely, the ratio of retirees and early retirees starting businesses is on the rise. Those in their 50s rose for the seventh consecutive year, and ratios for those in their 60s, 70s, and 80s+ reached record highs since 2000. Notably, those aged 60 and older—the typical retirement age—accounted for 20.5%, surpassing 20% for the first time. Factors include greater familiarity with internet usage among this generation, the lift of bans on side jobs by major companies, and enhanced government support such as the '5-Year Plan for Startup Development.' These trends are encouraging middle-aged and older generations to pursue small businesses as a second life after retirement.

### Surge in 'Special Purpose Companies' (TMK) Amid High Property Prices By corporate type, 'Kabushiki Kaisha' remained the most common with 100,591 companies (about two-thirds of the total). However, 'Godo Kaisha' (LLCs) reached a record 44,998 (up 6.8%), providing high management freedom and low setup costs. Together, these two types account for over 90% of all new corporations.

Notably, 'Tokutei Mokuteki Kaisha' (TMK), used for asset management and issuing securities for real estate, saw the highest growth rate of 17.9% (increasing from 162 to 191 companies). This is likely influenced by the surging prices of high-rise apartments in Tokyo's 23 wards, which now average 100 million yen, making securitization schemes more viable.