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freee

Cloud accounting and back-office SaaS for Japanese SMEs

SaaS / AccountingTokyo, Japan public Founded 2012 4478.T

At a Glance

Legal name
freee K.K.
Jurisdiction
Japan
Ownership
public
Listed on
JPX-Prime (4478.T)
Employees
1000+
Revenue (est.)
$100M-$500M
Headquarters
Daiwa Shibuya Square 8F, 21-1 Sakuragaoka-cho, Shibuya-ku, Tokyo 150-0031
Snapshot Last updated 29 April 2026

freee is a Tokyo-headquartered cloud accounting and back-office SaaS group serving Japanese small and medium-sized businesses, sole proprietors, and growing startups.

Founded2012
Employees1000+
Revenue (est.)$100M-$500M
OwnershipPublic 4478.T

freee is a Tokyo-headquartered cloud accounting and back-office SaaS group serving Japanese small and medium-sized businesses, sole proprietors, and growing startups. Founded in 2012 by former Google Japan executive Daisuke Sasaki, the company built a tax-aware bookkeeping engine that ingests bank-account, credit-card, and invoice data and produces compliant Japanese ledgers, consumption-tax filings, and year-end personal income tax returns.

The product portfolio spans freee Accounting, freee Payroll, freee HR, freee Invoice, freee Sales (CRM), and freee Application (e-government filings). The company has been particularly aggressive on the regulatory frontier, integrating early with Japan's 2023 qualified invoice (invoice system) regime and the e-tax electronic filing infrastructure, which positions it as the de facto cloud back-office for newly invoice-eligible Japanese businesses.

freee listed on the Tokyo Stock Exchange Mothers market in December 2019 and migrated to the JPX Prime tier following the 2022 market restructure. It trades under ticker 4478.T. The company is consistently positioned alongside Money Forward as the dominant duo in Japanese cloud accounting, and the two firms together represent Tokyo's clearest answer to the global cloud-accounting wave personified by Xero and Intuit elsewhere.

  1. 1

    Estonia e-Residency play

    freee illustrates several lessons about modern Japanese corporate-structure choices that any foreign founder considering a Tokyo entity should absorb.

  2. 2

    Restructuring move

    **The KK form is non-negotiable for a JPX-listed SaaS.** freee is a Kabushiki Kaisha. Under the 2006 Companies Act, founders can choose between KK and GK (Godo Kaisha), but only KKs can list on the JPX. freee was incorporated as a KK from day one in 2012 and never had to convert. Founders who initially set up a GK for cost reasons must convert to a KK before listing, which involves notarial work, share-class restructuring, and tax considerations that are easier to avoid by starting as a KK.

  3. 3

    German entity type

    **The 1-yen-minimum-capital reform created the modern Japanese startup.** Before 2006, incorporating a KK required 10 million yen of paid-in capital and a GK-equivalent required 3 million yen. The 2006 reform abolished these floors and allowed 1-yen incorporation, which was the regulatory precondition for Tokyo's post-2010 startup wave. freee, Mercari, SmartHR, Sansan, and Money Forward were all incorporated under the post-reform regime.

  4. 4

    German entity type

    **JPX listing tiers after 2022.** The Tokyo Stock Exchange replaced its First Section, Second Section, Mothers, and JASDAQ structure with three new segments in April 2022: Prime, Standard, and Growth. Prime is the flagship tier with strict free-float, market-cap, and English-disclosure expectations. freee listed on Mothers in 2019, was automatically reclassified into Growth, then migrated to Prime once it met the higher thresholds, just as Mercari, Sansan, and Money Forward did.

Build Your Own

Replicate freee's structure in 4 steps

The formation playbook, distilled from how this company was actually set up.

1

German entity type

Incorporate a KK at the Tokyo Legal Affairs Bureau. Have the articles of incorporation notarised, deposit at least 1 million yen of paid-in capital (5 million for a Business Manager visa), and register the company seal.

2

Adopt the company-with-audit-committee governance model in

Adopt the company-with-audit-committee governance model in the articles, which is the cleanest path to JPX Prime later.

3

Estonia e-Residency play

Register at least one Japanese-resident representative director. Foreign founders may serve in this role on a Business Manager visa.

4

Tax strategy

Open accounts at a major Japanese bank, register for consumption tax under the qualified-invoice regime, and integrate with e-tax for electronic filings.

Market Snapshot

JPX · 4478.T · as of 29 Apr 2026
Last price2,231.00 JPY-44.71%
Market cap
52-week range1,831.00 JPY - 4,330.00 JPY
CurrencyJPY

Live data via Yahoo Finance. Refreshed nightly. Not investment advice.

Frequently Asked Questions

Why does freee have to be a KK rather than a GK?

GKs (Godo Kaisha) cannot list on the Tokyo Stock Exchange. The JPX requires a joint-stock company structure with transferable shares and either the kansayaku, audit-committee, or three-committees governance model. freee was incorporated as a KK from day one in 2012, which is the cleanest path for any company expecting a domestic IPO.

What does JPX Prime require?

Prime is the top tier of the post-2022 JPX. Issuers must maintain a tradable market cap of at least 10 billion yen, at least 800 shareholders, a 35 percent free float, full English-language disclosure of material announcements, and adoption of the audit-committee or three-committees governance model. freee migrated from the old Mothers (now Growth) tier to Prime after the 2022 restructure.

Are foreign shareholders allowed to own freee stock freely?

Yes. freee is consumer and SME software, so there is no general foreign-ownership cap. The Foreign Exchange and Foreign Trade Act requires pre-notification for large stakes in regulated sectors like broadcasting, defense, and certain infrastructure, but cloud accounting is unrestricted, and any foreign investor can buy freee shares through a JPX-connected broker.

What is the practical minimum capital to incorporate a KK in Tokyo today?

The legal minimum is 1 yen since the 2006 Companies Act reform abolished the prior 10-million-yen requirement. In practice 1 million yen is the working floor for opening bank accounts and signing supplier contracts. A foreign founder who also needs a Business Manager visa must put in at least 5 million yen of paid-in capital and demonstrate a physical Tokyo office.

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