【Survey】Okinawa Ranks 3rd in New Company Registrations per 100,000 People - Background is 'Tourism × Limited Liability Companies'

Compalyze Inc. (Headquarters: Kusatsu City, Shiga Prefecture, Representative Director: Takashi Suzuki), which operates the corporate database 'Compalyze (Compalyze)', conducted a survey analyzing the number of new companies registered between 2021 and 2025 by prefecture based on the National Tax Agency's corporate number data. The results showed that Okinawa (706 companies) ranked 3rd nationwide, following Tokyo and Osaka. However, when the contents of the new registrations were broken down, it was revealed that Okinawa's startup landscape is unique, neither a tech cluster nor a chaotic one.

Request for Data Citation When citing or using the survey data, please include the following URL and source. URL: https://compalyze.co.jp/journal/startup-density Source: 【Survey】Okinawa Ranks 3rd in New Company Registrations per 100,000 People - However, the Identity is Not 'Tech Cluster' but 'Tourism × Limited Liability Companies' Density

Survey Summary The number of new companies registered per 100,000 people (cumulative from 2021 to 2025) is 1,421 for Tokyo, 805 for Osaka, and 706 for Okinawa, ranking 3rd nationwide. Fukuoka (564) and Kyoto (543) follow. Okinawa's new registrations are not tech startups. The ratio of IT/tech-related company names is 2.43%, below the national average of 2.98%, and lower than Fukuoka (2.86%), Kyoto (2.68%), and Tokyo (3.40%). They are not 'short-lived' either. The early closure rate within 4 years of establishment is 2.1% for Okinawa, lower than the national average of 3.1% and Tokyo's 3.9%, indicating that companies in Okinawa are more likely to persist. The driving force behind Okinawa's ranking is the combination of limited liability companies, which account for 39.9% of new registrations (national average 28.7%), tourism-related companies, which are approximately 4.3 times the national average (0.91% vs. national 0.21%), and the concentration of nominal headquarters in specific addresses in Naha (75 companies in 4 years). Fukuoka and Kyoto have a higher density of business and startup-oriented companies. Okinawa has a density of 'tourism × light entities,' and even though they are in the top ranks, their nature is different. When considering the number per capita, Okinawa rises to 3rd place If we count the companies newly registered from 2021 to 2025 by prefecture and convert them per 100,000 people, Tokyo tops the list with 1,421 companies. Okinawa, with 706 companies, ranks 3rd, significantly ahead of Osaka (805 companies), which is in 2nd place. Although Okinawa's absolute number of new companies is mid-range nationwide, its population of approximately 1.47 million is small, so it ranks high in terms of per capita. Following are Fukuoka (564 companies), Kyoto (543 companies), Kanagawa, and Aichi. Okinawa's startups are neither 'tech' nor 'short-lived' When you hear that Okinawa ranks 3rd in terms of per capita, you might imagine a vibrant startup city with IT companies gathering. However, looking at the contents of the newly established companies, this image is doubly betrayed. One is that it is not a tech startup. When looking at the ratio of company names that include terms such as IT, system, tech, and digital, Okinawa is at 2.43%, below the national average of 2.98%. It is lower than Tokyo (3.40%), Fukuoka (2.86%), and Kyoto (2.68%). Although the number of companies per capita is high, this is not the result of a tech cluster. The other is that it is not 'just numerous and soon to disappear.' The ratio of companies already closed within 4 years of establishment (early closure rate) is 2.1% for Okinawa. This is lower than the national average of 3.1% and Tokyo's 3.9%, indicating that new companies in Okinawa tend to last longer than in other regions. The image of 'rapidly establishing and soon closing' does not hold. What is driving Okinawa? - Limited Liability Companies, Tourism, and Nominal Headquarters So, why is Okinawa ranked 3rd nationwide in terms of per capita, even though it is neither tech nor short-lived? When we break down Okinawa's startup density, three unique characteristics emerge. Okinawa's New Company Profile (National Average = 1.0, Compalyze Survey) The prevalence of limited liability companies. 39.9% of new companies in Okinawa are limited liability companies, significantly higher than the national average of 28.7%. Limited liability companies have no obligation to disclose financial statements and are the lightest form, often used as a receptacle for asset management, minpaku (private lodging), and small-scale businesses. In Okinawa, 40% of new companies choose this light form. The prominence of tourism. The ratio of company names that include terms such as tourism, resort, marine, and hotel is 0.91% for Okinawa, approximately 4.3 times the national average of 0.21%. The depth of the tourism industry, which is relatively easy to start with small capital, is considered to be boosting the number of new registrations. The concentration of nominal registrations. The address where the most new companies in Okinawa have been registered has seen 75 companies gather in about 4 years (37 of which are limited liability companies). This is believed to be the address of a shared office or a registered agent, indicating that there are cases where only the registered address is placed, rather than the actual headquarters (this does not determine the reality of individual companies). In summary, Okinawa's '3rd place in terms of per capita' is a density created by the combination of the tourism industry, which is easy to start, the bias towards limited liability companies as a light form, and the concentration of nominal headquarters. It does not directly indicate the depth of business or tech clustering. On the other hand, the early closure rate is low, and the companies that are born are not fragile. It is a unique startup landscape in Okinawa: 'Numerous, light, but not fragile.' Even with the same high density, the nature is different Even among prefectures that rank high in terms of per capita, the nature of their contents is not uniform. When arranged by the ratio of limited liability companies (how much light forms are chosen) and the ratio of IT/tech-related company names (a proxy indicator of business frontier), positions diverge even with the same high density. New Company Personality Map: Horizontal Axis = Ratio of Limited Liability Companies, Vertical Axis = Ratio of IT-Related Company Names (Compalyze Survey) Fukuoka (Limited Liability Companies 25.6%, IT 2.86%) and Kyoto (25.0%, 2.68%) are positioned as 'business and startup-oriented' with fewer light forms and a higher IT ratio. On the other hand, Okinawa is positioned as a 'tourism × light form' type with a significantly higher ratio of limited liability companies and a low IT ratio. Even though they are in the 'top in terms of per capita,' while Fukuoka and Kyoto have a density of business, Okinawa has a density of forms and tourism, and the nature is quite different. If we uniformly read the per capita numbers as 'vibrancy of startups,' we overlook this difference. Approximately 7-fold regional differences and how to read density indicators Looking at the lower ranks, the prefectures with fewer new companies per capita are Iwate (201), Akita (209), and Yamagata (210), among others, in the Tohoku and Japan Sea regions. There is approximately a 7-fold gap between the lowest-ranked Iwate and the top-ranked Tokyo. However, as seen in this survey, a large 'number' per capita does not necessarily mean the depth of business or the vibrancy of startups. The way limited liability companies are chosen as a form, the industrial structure like tourism, and the concentration of nominal headquarters are elements that push up the density. The registration density of new companies is an entry-level indicator for understanding the trend of business startups in the region. It is only when we break down 'what kind of companies are being born and with what forms' that the startup landscape of the region begins to emerge. ▶ For full data and analysis details, please refer to the following 【Survey】Okinawa Ranks 3rd in New Company Registrations per 100,000 People - However, the Identity is Not 'Tech Cluster' but 'Tourism × Limited Liability Companies' Density Survey Overview Survey Entity Compalyze Inc. Survey Target All registered corporations in Japan based on the National Tax Agency's corporate number disclosure data (approximately 58 Keyword: