Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the Bureau's decision, including banking and payment rails.
Get a forex license in Japan.
The world's largest retail FX market licenses brokers as Type I financial instruments business: FSA registration under the FIEA - ¥50,000,000 minimum capital, a 120% capital adequacy ratio maintained continuously, the 25:1 retail leverage cap, and a client base no other market can offer.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Licenses obtainedlicenses obtained
Updated
Japan in brief
The largest retail FX market on earth.
Japan regulates OTC forex as over-the-counter derivatives business: operating a margin-FX platform requires registration as a Type I Financial Instruments Business Operator under the Financial Instruments and Exchange Act, filed with the competent Local Finance Bureau and supervised by the Financial Services Agency. The statutory floor is stated capital of ¥50,000,000, and registration is refused where the capital adequacy ratio - regulatory capital against risk - falls below 120%, a ratio then maintained and reported continuously. The retail product itself is defined by rule: since August 2011 individual-customer leverage has been capped at 25:1, with margining, loss-cut mechanics and customer-money trust segregation prescribed in detail, and membership of the industry self-regulatory organisation the operating norm.
Why brokers still make the climb: Japanese households trade more retail FX than any market in the world, and the yen pairs they trade dominate global volumes. The FSA's published cadence is disciplined - a standard processing period of two months from a complete application, with three to four months of draft preparation and pre-consultation before it, and SRO admission after, so the realistic end-to-end runs six to twelve months including setup. The regulator reads Japanese-language files, tests resident management and audits systems; local counsel, prepared people and a complete file are the entire game. That preparation is our job.
Type I FIBO registration under the FIEA: ¥50M stated capital, 120% capital adequacy, 25:1 retail cap since 2011, customer margin in trust, SRO membership - filed with the Local Finance Bureau, two-month standard processing after 3-4 months of prep.
The reward: the world's largest retail FX market, trading yen pairs at home. We build the file bilingually, end to end.
The two models
The retail platform - or the professional book.
One Type I registration, two commercial architectures: the full retail margin-FX platform under the 25:1 conduct stack, or the corporate and professional-investor book with institutional mechanics. We fix the model first, then build once.
The retail platform under the 25:1 stack - or the professional book.
01 - RETAIL MARGIN-FX PLATFORM
The retail broker
The complete registration: OTC margin FX for Japanese retail customers - ¥50,000,000 capital, 120% CAR, the 25:1 leverage cap, trust-segregated customer margin and SRO membership built in.
The complete registration: OTC margin FX for Japanese retail customers - ¥50,000,000 capital, 120% CAR, the 25:1 leverage cap, trust-segregated customer margin and SRO membership built in.
- ✓Type I FIBO - OTC FX derivatives
- ✓¥50,000,000 minimum stated capital
- ✓Capital adequacy ratio ≥120%
- ✓Retail leverage capped at 25:1
- ✓Customer margin held in trust
- ✓Access to the world's largest retail FX base
02 - CORPORATE & PROFESSIONAL
Same registration · different bookThe professional model
The same Type I registration pointed at corporate and professional investors. Institutional margining outside the retail 25:1 cap, lighter disclosure mechanics and a B2B liquidity model that scales regionally.
Corporate/professional investors; risk-based margin outside the retail cap; same ¥50M and 120% CAR; retail later.
- ✓Corporate / professional-investor book
- ✓Margin set by risk models, not the retail cap
- ✓Same ¥50M capital and 120% CAR
- ✓Institutional documentation standards
- ✓Liquidity and white-label economics
- ✓Path to add retail later
Costs and timelines are confirmed for your case before any work begins. Statutory dues and SRO fees follow their schedules; capital, translation and substance costs are itemised in your quote.
Why Japan
The market that justifies the machinery.
Japan trades procedural rigour for the deepest retail FX demand in the world.
✓
The #1 retail FX market
Japanese retail traders move more FX volume than any other market. The client base itself is the business case.The client base is the case.
✓
A defined, published path
The FSA publishes the sequence. Pre-consultation, draft rounds, a two-month standard processing period, SRO admission. A climb, but a mapped one.Mapped climb, 2-month clock.
✓
Statutory capital that's modest
¥50,000,000 stated capital is the floor. Far below Hong Kong's HK$30M. With the discipline sitting in the 120% ratio instead.Discipline in the ratio.
✓
Rules that killed the cowboys
The 25:1 cap, loss-cut rules and trust segregation ended offshore-style retail FX in Japan. Licensed operators inherit a cleaned market.25:1 ended the cowboys.
✓
The FSA's global standing
A Type I registration is read as top-tier diligence across Asia. Banking, liquidity and listing conversations start warmer.Top-tier diligence stamp.
✓
Yen-pair liquidity at home
USD/JPY and the yen crosses dominate global FX. A Japanese book trades the pairs the market prices deepest, in their home time zone.Deepest pairs, home zone.
How it compares
How Japan differs from other routes.
The comparison that matters: the strictest conduct stack in Asia. Attached to its largest prize.
Japan vs other jurisdictions
| Feature |  Japan | Other jurisdictions |
|---|---|---|
| Regime | FIEA - Type I FIBO | MiFID desks or offshore |
| Capital | ¥50M + 120% CAR | US$0-2M spread |
| Retail leverage | 25:1 by rule | 30:1 EU · uncapped offshore |
| Timeline | 6-12 months incl. prep | Weeks offshore, months EU |
Regime
JapanFIEA - Type I FIBO
Other jurisdictionsMiFID desks or offshore
Capital
Japan¥50M + 120% CAR
Other jurisdictionsUS$0-2M spread
Retail leverage
Japan25:1 by rule
Other jurisdictions30:1 EU · uncapped offshore
Timeline
Japan6-12 months incl. prep
Other jurisdictionsWeeks offshore, months EU
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Japan | FSA Type I FIBO | ~30% effective | ¥50M · CAR 120% · 25:1 |
 Singapore | MAS CMS licence | 17% · exemptions | S$1M-5M base capital |
 Hong Kong | SFC Type 3 | 8.25% / 16.5% | HK$30M paid-up + HK$15M liquid |
 Australia | ASIC AFSL | 30% · 25% base | NTA A$1M, CFD order |
JapanLicense typeFSA Type I FIBO
Taxation~30% effective
Requirements¥50M · CAR 120% · 25:1
SingaporeLicense typeMAS CMS licence
Taxation17% · exemptions
RequirementsS$1M-5M base capital
Hong KongLicense typeSFC Type 3
Taxation8.25% / 16.5%
RequirementsHK$30M paid-up + HK$15M liquid
AustraliaLicense typeASIC AFSL
Taxation30% · 25% base
RequirementsNTA A$1M, CFD order
Before you apply
Requirements for Type I registration.Requirements for registration.
The Local Finance Bureau screens the company, the people and the systems in Japanese and in depth. The checklist below is what a passing application contains.
01
Japanese entity. A kabushiki kaisha (or registered branch) with a genuine office in Japan.
02
Stated capital - ¥50,000,000 minimum, paid in and evidenced.
03
Capital adequacy. The 120% ratio computed, maintained and reportable from day one.
04
Resident management. Directors and compliance officers in Japan with securities-business experience the Bureau can interview.
05
Personnel screening. Organisational charts and CVs demonstrating capability for each function, per the FSA's screening points.
06
Customer margin in trust. Segregation of client money with a Japanese trust arrangement, designed before launch.
07
Leverage and loss-cut systems. The 25:1 cap, margin calls and automatic loss-cut mechanics engineered into the platform.
08
Internal control framework. Compliance manuals, risk management and internal audit in Japanese-language form.
09
AML/CFT programme. KYC, screening and reporting aligned to FSA guidelines, with named ownership.
10
SRO admission. Membership of the relevant self-regulatory association planned into the timeline.
11
System risk management. The FSA's IT governance expectations met and documented for platform, data and outsourcing.
01
KK with a real Japanese office.
02
¥50,000,000 stated capital.
03
120% CAR from day one.
04
Resident, experienced officers.
05
Screening-ready people file.
06
Customer margin in trust.
07
25:1 + loss-cut engineered.
08
Japanese internal controls.
09
AML per FSA guidelines.
10
SRO admission planned.
11
System risk documented.
Reflects the FIEA, its Enforcement Order and Cabinet Office Ordinances as of 2026.FIEA + Enforcement Order + Cabinet Office Ordinances, 2026.
How it works
From first call to the FIBO register.
01
Model and pre-consultation
Retail or professional book, structure and the Financial Market Entry Office consultation. Fixed before drafting.Model fixed, FSA desk engaged.
02
Company and people
KK incorporation, ¥50M capital and the resident officers the Bureau screens individually.KK, ¥50M, resident officers.
03
Draft rounds
Registration documents drafted and refined with the Bureau. Typically three to four months of preparation.3-4 months of preparation.
04
Formal application
The standard processing period is two months from a complete filing. Corrections stop the clock, so we file complete.2-month standard period.
05
SRO and launch
Notice of registration, self-regulatory admission, trust and systems live. The largest retail FX market, open.Registered, trust live.
Quick facts
RegulatorFSA · Local Finance Bureau
RegistrationType I FIBO - FIEA
Minimum capital¥50,000,000
Capital adequacy≥120%
Retail leverage25:1
Client moneyTrust-segregated
Standard processing2 months + prep
Realistic timeline6-12 months
The Bureau registers operators whose people and systems it has screened in Japanese. Being ready in their language and format is the entire game, and our job.
On the ground in Japan
Run from our Tokyo office.
Prifinance - Japan
Tokyo · Japan
Tokyo, Japan
01
Japanese entity setup
KK incorporation, capital structuring and the corporate layer the Bureau expects. Built for registration from day one.KK built for registration.
02
The registration file
Pre-consultation, draft rounds and the formal application. Prepared bilingually, filed in Japanese, defended through the questions.Bilingual, defended.
03
People and screening
Resident directors and compliance officers sourced and prepared for the Bureau's capability screening.Screening-ready residents.
04
Trust and systems
Customer-margin trust arrangements, loss-cut mechanics and system-risk documentation. Engineered with local partners before filing.Engineered before filing.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
Dubai
UAE
33 Level, Al Saqr Business Tower
London
United Kingdom
7 Bell Yard
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Good to know
Taxation of forex brokers in Japan.
Developed-market rates funding developed-market credibility. With the detail worth planning around.
Corporate tax ~30% effective
National corporation tax of 23.2% plus local levies brings the effective rate to roughly 30% in Tokyo. The price of the largest retail market.23.2% national + local.
Consumption tax 10%
The standard rate. With financial transactions largely exempt, JCT touches operating costs rather than the dealing book.Finance largely exempt.
Loss carry-forward
Corporate losses carry forward for up to ten years. The build-phase deficits of a licensed launch are absorbed against later profits.Build-phase absorbed.
Client-side clarity
Retail FX gains are taxed to customers at a flat separate rate. A settled, understood regime that supports the market's depth.Flat separate rate.
Group structuring
Japan's consolidation and group-relief rules let a licensed subsidiary sit cleanly inside an international group. Modelled per structure.Consolidation works.
Treaty network 70+
One of Asia's deepest treaty networks. Dividends, interest and royalties above the Japanese entity route cleanly.Deep network.
Tax summary
Corporate (effective)~30%
National CIT23.2%
Consumption tax10% · finance exempt
Loss carry-forward10 years
Tax treaties70+
*Figures as of 2026 per the NTA. Group and founder-level outcomes are modelled per structure.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Japanese company, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, registered broker.
Follow Prifinance
Active across our channels.
Japan · FSA
Launch your forex project in Japan with expert support.
Full-service assistance - from KK incorporation to Type I registration, trust segregation and SRO admission - run through our Tokyo office.
Get a consultation →Free legal opinion
Is Japan the right fit for your project?
Our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.
Written assessment within 2-5 business days
Request a free conclusion →FAQ
The Japan forex licence: quick answers.
What licence does a forex broker need in Japan?+
Registration as a Type I Financial Instruments Business Operator under the FIEA - OTC margin FX is regulated as over-the-counter derivatives business. The filing goes to the competent Local Finance Bureau under FSA supervision.
What capital is required?+
Minimum stated capital of ¥50,000,000, plus a capital adequacy ratio of at least 120% - registration is refused below that ratio, and it must be maintained and reported continuously thereafter.
What leverage can I offer?+
Individual customers are capped at 25:1 - the margin regulation in force since August 2011 bans retail FX above that leverage. Corporate and professional books run on risk-based margining outside the retail cap.
How long does registration take?+
The FSA's standard processing period is two months from a complete formal application, but three to four months of draft preparation and pre-consultation come first, and SRO admission follows. Realistically six to twelve months end to end including company setup.
How is client money protected?+
Customer margin must be segregated from the firm's assets and held in trust with a Japanese trust arrangement - a defining feature of the regime, designed and contracted before launch.
What substance is expected?+
A genuine Japanese operation: a KK with a real office, resident directors and compliance officers with securities experience, Japanese-language internal controls and systems the Bureau can audit.
How are Japanese brokers taxed?+
Roughly 30% effective corporate tax in Tokyo (23.2% national plus local levies), 10% consumption tax with financial exemptions, ten-year loss carry-forward and a 70+ treaty network.
Is the market worth the strictness?+
Japan is the world's largest retail FX market and trades the deepest currency pairs on earth. The conduct stack that makes entry demanding is the same machinery that keeps the market deep, clean and loyal to licensed operators.
Do I need to join an SRO?+
Membership of the relevant self-regulatory association is the operating norm and expected in practice - its rules on margin, advertising and reporting form part of daily compliance. We plan admission into the timeline.
Why Prifinance for Japan?+
Bilingual file preparation with local partners, people-screening readiness, trust and system architecture engineered before filing, and 400+ licences of pattern recognition applied to Asia's most exacting register.
What licence?+
Type I FIBO - OTC FX derivatives.
Capital?+
¥50M + 120% CAR.
Leverage?+
25:1 retail cap since 2011.
How long?+
2-month clock + prep; 6-12 total.
Client money?+
Trust-segregated by rule.
Substance?+
Resident officers, real office.
Taxes?+
~30% effective; JCT 10%.
Worth it?+
The largest retail market.
SRO?+
Membership is the norm.
Why you?+
Bilingual files, 400+ licences.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
“As a software development crew at FewMoreTaps OÜ, we've had the pleasure of working with Prifinance on some key financial moves.First of all, navigating the world of corporate banking and finance can be a maze, but Prifinance made it feel like a walk in the park. They helped us set up a corporate bank account without the hassle of jumping on a plane or drowning in paperwork. Everything was done remotely, smoothly…”
Google
“I had their assistance in company registration and I would recommend them. They were answering all my clarification during the process and offering all their supportThank you Daniel and Irinia”
Google
“We found PRIFINANCE COMPANYvia the Internet and asked for help in organizing the opening of their company in Estonia. PRIFINANCE COMPANY specialists helped us a lot with this. Their professional, competent approach and knowledge of their business left us with only the best impressions.”
Google
“I'm thrilled with my experience with PriFinance! They helped me obtain a crypto license in Estonia without any hassle. The team was super understanding and always available to answer my questions and assist. It was great to see how they put effort into preparing the documents to ensure everything went smoothly. I'm delighted with the outcome and highly recommend PriFinance to anyone looking to get a license…”
Google
“Opening an account with Prifinance in a Swiss bank was such an easy and quick process that I was shocked. It all started with the first call, where I received detailed guidance on the required documents and the entire procedure.One of the key highlights was their attention to detail. As someone who usually gets tangled up in paperwork, I was pleasantly surprised when they sent me all the documents and…”
Google
“I recently had the pleasure of working with Boris.. and I must say, it was a fantastic experience. Boris went above and beyond to assist me with my residency needs. His professionalism, knowledge, and dedication truly stood out. I highly recommend working with Boris and the team!”
Google
Start today
One message away from your Japan forex licence.
Get a free legal opinion on your project - our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.Free legal opinion: which Japan route fits your project and what it will cost.
✓Written legal opinion within 2-5 business days - free of charge✓A clear recommendation on the right licence scope, not a sales pitch✓Transparent fixed fees, confirmed up front✓EN · RU · ES speaking team
Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the Financial Services Agency (FSA) or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.