Thousands of Companies Sharing One Address: Tokyo Top for Virtual Renting Trend

A survey conducted by Compalyze, a corporate database manager, has revealed a peculiar trend in Japan - the concentration of registered companies at a limited number of addresses in the capital. The analysis, based on data from the National Tax Agency, found two addresses in Tokyo, in particular, to be hotspots for corporate registrations.

The first, a Marunouchi accounting firm building in Chiyoda, housed 4,794 companies, while the second, a commercial building in Dōgenzaka, Shibuya, housed 4,754 companies. The majority of high-concentration addresses were commercial buildings in Tokyo, with the next three located in Nishi-Shinjuku, Ginza, and Jingūmae. Outside of Tokyo, the top address was directly in front of Umeda Station in Osaka, housing 2,037 companies.

Outside of the top 10, the remaining locations were mainly in major metropolitan areas, including commercial buildings in Nagoya, Fukuoka, and Yokohama. Compalyze identified four main types of address registration: address rental (virtual offices), SPC registered address provider, registration agencies for foreign companies, and real estate SPC registered address providers.

The most significant increase in address registrations has been in the virtual office category, attributed to factors such as the rise of remote work, the establishment of side businesses, and the increasing popularity of virtual office services. Compalyze concluded that "a company's 'address' no longer necessarily indicates the actual location," highlighting the disconnect between a company's physical presence and its registered address.