🇯🇵 Complete Guide to Setting Up a Company in Japan for Foreigners & Entities

Comprehensive Coverage: From Bank of Japan Notifications to the Latest Visa Requirements

[Supervised by Shionaga Administrative Scrivener Corporation]

1. Introduction

As of 2026, Japan remains one of the most strategic markets for global entrepreneurs and foreign corporations. With a robust economy and government initiatives targeting digitalization and innovation, the barriers to entry are being reshaped by new regulations.

While Japanese Company Law allows foreign nationals to establish entities, the process involves complex hurdles unique to non-residents: Foreign Exchange and Foreign Trade Act (FEFTA) filings, capital remittance challenges, and the newly tightened Business Manager Visa requirements.

This guide, updated for November 2026, provides a step-by-step roadmap for a successful market entry, reflecting the critical legal changes enacted in late 2025.

2. Eligibility & Legal Compliance

Foreign individuals and corporations can establish a Japanese company (Kabushiki-Kaisha or Godo-Kaisha) regardless of residency. However, strict compliance with the following is mandatory:

Key Requirement	Details	Critical Note (2026 Practice)
Non-Resident Directors	Possible to establish with 100% non-resident directors.	Securing a corporate bank account remains the most difficult hurdle.
Visa Status	Required for active management/remuneration.	Working without a proper status (e.g., “Business Manager”) leads to severe penalties.
FEFTA Compliance	Mandatory for any investment of 1% or more.	Failure to report can lead to forced divestment and heavy fines.

3. Choosing the Entity: KK vs. GK

The choice depends on your scale and branding strategy.

Kabushiki-Kaisha (KK) – Joint Stock Company:
- Highest social credibility in Japan. Preferred for large-scale businesses, fundraising, and B2B contracts with major Japanese firms.
Godo-Kaisha (GK) – Limited Liability Company:
- Lower setup costs and flexible management. Common for small businesses or Japanese subsidiaries of well-known foreign tech giants.

4. FEFTA: Mandatory Notifications to the Bank of Japan (BOJ)

Under the Foreign Exchange and Foreign Trade Act, investment by a non-resident is classified as “Inward Direct Investment.”

🔹 Types of Filing

Prior Notification: Required for investments in “designated industries” (e.g., Aerospace, Defense, Energy, Cybersecurity, and specific Tech sectors). Must be filed and cleared up to 6 months before registration.
Post-Investment Report: For standard industries. Must be filed within 45 days after the acquisition of shares/equity.

⚠️ Warning: Since 2025, the Ministry of Finance has increased audits on FEFTA compliance. Missing these filings can jeopardize your visa renewal and corporate standing.

5. The Setup Process (Non-Resident Timeline)

Expect a duration of 1.5 to 3 months due to document authentication and translation.

Define Core Structure: Trade name, business purpose, capital, and executive structure.
Articles of Incorporation & Notarization: Non-residents must provide a Signature Certificate (notarized in their home country) with a Japanese translation.
Capital Remittance: Funds must be transferred to a Japanese bank account. (Our firm can assist with specialized “escrow” solutions if you lack a Japanese account).
Registration at Legal Affairs Bureau: The date of application becomes the official company anniversary.
Post-Registration Filings: Notify tax authorities and complete the FEFTA Post-Investment Report to the Bank of Japan.

6. The “Business Manager” Visa: 2025-2026 Strict Criteria

Following the October 16, 2025 amendment, the Immigration Services Agency has intensified its scrutiny:

Physical Office Requirement: Virtual offices or residential addresses are generally not permitted. You must have a dedicated commercial space with a formal lease under the company name.
Investment/Scale: A minimum capital of 5 million JPY OR the employment of at least two full-time Japanese/Permanent Resident staff.
【New】 Expert Evaluation Report: For most applications, a business feasibility report signed by a Japanese professional (Small and Medium Enterprise Consultant, CPA, or Tax Accountant) is now essentially required to prove the sustainability of the business.
Applicant Qualifications: While not strictly mandatory, academic background, management experience (3+ years), and Japanese proficiency (B2 level/JLPT N2) significantly increase approval odds.

7. Required Documents (Non-Residents)

For Individuals: Passport copy, Signature Certificate, and Japanese translations of all foreign documents.
For Entities: Certificate of Incorporation (Articles), Corporate Profile, and Signature Certificate of the representing officer.
For Visa: Detailed Business Plan, Expert Evaluation, Office Lease, and Photos of the workspace.

8. Why Choose Shionaga Office?

Navigating Japanese law requires a synchronized approach to Registration, FEFTA, and Immigration.

At Shionaga Administrative Scrivener Corporation, we provide a “one-stop” solution in collaboration with partner Judicial Scriveners and Tax Accountants:

FEFTA Expertise: We identify “designated industries” early to avoid legal delays.
Strategic Planning: We draft business plans that meet the new 2025/2026 immigration standards, including the required professional evaluations.
Global Support: Handling English-to-Japanese translations and non-resident signatures with ease.

Contact Us

Secure your future in the Japanese market with professional legal support.

Shionaga Administrative Scrivener Corporation

Address: 1-9-6 Suizenji, Chuo-ku, Kumamoto-shi, Kumamoto 862-0950
Phone: +81-96-385-9002
Email: info@shionagaoffice.jp
Coverage: National (Support available via Zoom/online)