🇯🇵 **Complete Guide to Company Incorporation in Japan for Foreign Individuals & Corporations
— From Foreign Exchange Notifications to the Latest Visa Requirements —**
Supervised by: Administrative Scrivener Corporation Shionaga Office
1. Introduction
Entering the Japanese market has become one of the most strategic choices for foreign entrepreneurs and overseas corporations. As of 2026, Japan continues to offer significant business opportunities in pharmaceuticals, IT, tourism, AI, and advanced digital transformation.
Foreign individuals and foreign corporations may establish a company in Japan under the Companies Act. However, unlike Japanese nationals, they must also navigate additional requirements such as:
- Appropriate residence status (visa)
- Foreign Exchange and Foreign Trade Act (FEFTA) notifications
- Capital remittance procedures
- Translation and notarization of foreign documents
These factors make the process considerably more complex.
This guide—reviewed by the specialists at Shionaga Office—reflects the latest updates as of November 2025, including:
- FEFTA reporting obligations for investments of 1% or more
- Revised “Business Manager” visa requirements effective October 16, 2025
We explain every step, from feasibility to incorporation, FEFTA filings with the Bank of Japan, and visa procedures.
Shionaga Office, based in Kumamoto and serving clients nationwide, provides one-stop support for incorporation, visa applications, and FEFTA filings. We also handle reapplications for previously denied cases.
📞 096-385-9002 📧 info@shionagaoffice.jp
2. Can Foreigners or Foreign Corporations Establish a Company in Japan?
Yes. Foreign individuals and foreign corporations may establish a company in Japan regardless of nationality or residence.
However, several critical requirements must be met.
Key Requirements & Practical Notes
| Requirement | Details | Practical Notes |
|---|---|---|
| Non-resident directors | All directors may reside overseas | FEFTA notification to the Bank of Japan is mandatory |
| Residence status (visa) | Incorporation itself is allowed | Paid management activities require a “Business Manager” visa; unauthorized work carries severe penalties |
| FEFTA applicability | 1%+ investment by a non-resident = “Inward Direct Investment” | Violations may result in criminal penalties and divestment orders |
3. Choosing the Corporate Structure: KK vs. GK
| Item | Kabushiki Kaisha (KK) | Godo Kaisha (GK) |
|---|---|---|
| Credibility | High | Moderate |
| Cost | Approx. ¥250,000+ | Approx. ¥100,000+ |
| Governance | Complex | Simple |
| Recommended for non-residents | Yes (Incorporator Method) | — |
4. FEFTA: Mandatory Notification to the Bank of Japan
If a foreign individual or foreign corporation invests 1% or more, the investment qualifies as Inward Direct Investment under FEFTA.
Types of Notifications
| Type | Timing | Applicable Cases |
|---|---|---|
| Prior Notification | Within 6 months before registration | Certain nationalities or investments in sensitive industries |
| Post-Transaction Report (Standard) | Within 45 days after registration | Most standard inward direct investments |
Submission & Penalties
- Submitted to: Bank of Japan (forwarded to the Minister of Finance and relevant ministries)
- Documents: “Notification of Acquisition of Shares / Equity / Voting Rights” (3 copies)
- Penalties: Up to 5 years imprisonment or ¥5 million fine; possible divestment order
5. Step-by-Step Process for Incorporation
Foreign residents should expect 1–3 months due to translation and notarization requirements.
| Step | Description | Notes for Non-Residents |
|---|---|---|
| (1) Determine basic information | Company name, address, capital, directors | Confirm FEFTA applicability |
| (2) Draft & notarize Articles | Notarization at a notary office | Japanese translation required for foreign documents |
| (3) Create company seal | Representative seal | Signature certificate may substitute |
| (4) Capital remittance | Deposit into a Japanese bank account | Overseas branch accounts not allowed; ¥30M+ recommended for visa |
| (5) Registration | File with Legal Affairs Bureau | Declaration of non-resident status required |
| (6) Post-registration filings | Tax office, municipality, FEFTA report | FEFTA report due within 45 days |
6. “Business Manager” Visa Requirements (Revised October 16, 2025)
To engage in management activities and receive compensation, a foreign national must obtain a Business Manager visa.
The 2025 revision significantly tightened requirements.
Updated Requirements & Practical Measures
| Requirement | Revised Standard | Practical Measures |
|---|---|---|
| Office space | Independent, dedicated office under the company’s name; virtual offices and residences not accepted | Secure office before registration |
| Capital / staffing | Total investment of ¥30 million+, or at least one full-time employee (Japanese/PR/etc.) | Prepare capital and hiring plan |
| Business continuity | Business plan must include a professional evaluation report (SME consultant, CPA, tax accountant) | Quality of the plan is critical |
| Applicant qualifications | Japanese proficiency at B2 level, or bachelor’s degree, or 3+ years of management experience | Prepare certificates in advance |
Visa Application Flow
- Company registration completed
- Prepare documents
- Apply for Certificate of Eligibility (COE) (1–3 months)
- Obtain visa at Japanese embassy/consulate
- Enter Japan and receive residence card
Important: Applying before company registration results in a very high risk of denial.
7. Required Documents for Incorporation & Visa
| Category | Main Documents | Additional Documents for Non-Residents |
|---|---|---|
| Incorporation | Articles of Incorporation, capital remittance certificate, acceptance letters, seal registration | Signature certificate, affidavit |
| Visa Application | Certificate of Registered Matters, business plan with expert evaluation, financial projections, office lease | Passport copy, degree certificate, Japanese proficiency proof (B2) |
8. One-Stop Support by Shionaga Office
Foreign entrepreneurs face significant administrative burdens when entering Japan. Shionaga Office provides comprehensive support to ensure a smooth and compliant market entry.
Our Services
- Company incorporation
- FEFTA notifications (Bank of Japan)
- Business Manager visa applications
- Business license acquisition
Our Strengths
- Accurate translation of English documents
- Business plan creation with expert evaluation in mind
- Support for complex and previously denied cases
- Extensive experience and proven success
Administrative Scrivener Corporation Shionaga Office
Address: 1-9-6 Suizenji, Chuo-ku, Kumamoto City, Kumamoto 862-0950 Phone: 096-385-9002 Email: info@shionagaoffice.jp
We provide strong legal and procedural support to ensure your successful entry into the Japanese market.