Company Formation for Foreign Nationals
A Complete Guide to Starting a Business in Japan
Comprehensive support from Shionaga Administrative Scrivener Corporation—from company formation to obtaining the “Business Manager” visa
In recent years, the number of foreign entrepreneurs launching businesses in Japan has increased rapidly. However, doing so requires clearing several legal hurdles, including compliance with the Companies Act, the Immigration Control and Refugee Recognition Act, the Foreign Exchange and Foreign Trade Act (FEFTA), and tax procedures.
In particular, foreign nationals who wish to stay in Japan and manage a business must obtain the “Business Manager” (経営・管理) status of residence.
As of 2026, strict requirements apply, including paid-in capital of at least JPY 30 million, employment of full-time staff, and Japanese language proficiency equivalent to JLPT N2.
Shionaga Administrative Scrivener Corporation, located in Chuo Ward, Kumamoto City, provides nationwide one-stop services, covering company registration, visa applications, and FEFTA notifications, ensuring reliable support for foreign nationals entering the Japanese market.
Can Foreign Nationals Establish a Company in Japan?
Conclusion: Yes. Under the Companies Act, it is completely possible.
There are no nationality-based restrictions.
The following individuals or entities can serve as founders, officers, or shareholders:
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Foreign nationals residing in Japan (holders of mid- to long-term residence status)
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Foreign nationals residing overseas (with no address in Japan)
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Foreign corporations establishing a Japanese subsidiary
However, to actually manage a business while residing in Japan, a “Business Manager” visa is mandatory.
Even if a company can be established, without the proper status of residence the individual will ultimately be required to leave Japan.
Key Requirements for the “Business Manager” Visa (Latest as of 2026)
Following the enforcement of the amended Immigration Control Act in 2025, visa screening has become significantly stricter to prevent the misuse of “vacant visas.”
The primary requirements are as follows:
| Item | Requirement | 2026 Key Points |
|---|---|---|
| Business scale | Capital of at least JPY 30 million or employment of two full-time staff members | Increased significantly from the previous JPY 5 million |
| Business office | Independent physical office in Japan (lease contract required) | Virtual offices or residential use not permitted |
| Business continuity | A highly feasible business plan (five-year financial projection and market analysis) | Preparation by professionals recommended to improve approval rates |
| Management involvement | Proof of actual decision-making and managerial responsibilities | Simple labor activities are not permitted |
| Japanese language ability | JLPT N2 equivalent | New requirement; documentary proof required |
If these requirements cannot be met initially, another option is to utilize the “Designated Activities (Entrepreneurship Preparation)” visa, which allows a preparation period of up to two years.
Overall Process for Company Formation and Visa Application
Estimated time required: 2–4 months
(The visa screening process is typically the main bottleneck.)
1. Business Planning and Requirement Review
Prepare industry analysis, market strategy, and five-year financial projections, and confirm compliance with visa requirements.
2. Securing an Office
Sign a commercial lease agreement for business use.
Documents such as rent details, floor plans, and photographs are required.
3. Articles of Incorporation and Notarization
Prepare the Articles of Incorporation.
Using electronic articles eliminates the JPY 40,000 stamp tax.
Notarization fees at the notary office are typically JPY 30,000–50,000.
4. Capital Contribution
Transfer capital to the founder’s personal bank account and obtain a balance certificate.
When transferring funds from overseas, remittance documentation is required.
5. Company Registration (Legal Affairs Bureau)
Registration is typically completed 7–10 days after filing.
The registration date becomes the official date of company establishment.
6. Notifications to Government Authorities
Within two weeks after establishment, filings must be made with:
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The tax office
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The social insurance office
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Hello Work (employment office)
7. Business Manager Visa Application (Immigration Bureau)
Submit company documents and the business plan to immigration authorities.
Screening usually takes 1–3 months.
8. Post-Establishment Procedures
After business operations begin:
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Open a corporate bank account
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Submit FEFTA notifications
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Obtain any required business licenses
Required Documents (Company Registration and Visa Application)
For Company Registration
| Document | Details | Notes for Foreign Nationals |
|---|---|---|
| Articles of Incorporation (3 copies) | Includes business purpose and capital | Must be prepared in Japanese |
| Revenue stamp (JPY 40,000) | Exempt if electronic articles are used | – |
| Founder’s seal certificate | Issued within the last three months | Signature certificate from an embassy may be used instead |
| Capital payment certificate | Bank balance certificate | Proof of remittance route required |
| Beneficial owner declaration | Required under FEFTA compliance | Mandatory for foreign founders |
| Letter of acceptance of appointment | For company officers |
For the Business Manager Visa
| Document | Details | Notes |
|---|---|---|
| Application form and passport copy | Immigration standard form | Photo size 4.5 × 3.5 cm |
| Certificate of company registration and notarized articles | Issued within the last three months | |
| Business plan | Financial projections and market analysis | Professional preparation recommended (target approval rate above 80%) |
| Capital proof | Bank balance certificate (JPY 30 million or more) | Proof of source of funds required |
| Office lease agreement and photos | Proof of dedicated office space | Photos after move-in required |
| Full-time employee contracts | At least two Japanese nationals or permanent residents | Attach N2 language certificate |
Common Problems and Points of Caution
1. Corporate Bank Account Rejection
Even after company formation, banks may refuse to open an account if they determine that there is no real business activity.
Pre-consultation with banks is essential.
2. Office Requirement Issues
“Residential use” or shared offices often lead to visa denial.
A separate entrance and business nameplate are required.
3. Unclear Capital Formation Process
Visa applications may be rejected if the source of funds cannot be verified.
Ensure complete documentation of overseas transfers and financial sources.
4. Weak Business Plan
Applications may be rejected if immigration authorities determine that profitability is uncertain.
Provide concrete market data and prospective business partners.
5. Failure to Meet the 2026 Requirements
Failure to provide N2 certification or the two-employee requirement may lead to immediate rejection.
Always confirm the latest immigration guidelines.
Advantages of Hiring Shionaga Administrative Scrivener Corporation
Foreign entrepreneurship involves a complex intersection of corporate law, immigration law, and foreign investment regulations.
Entrusting the process to specialists dramatically improves the likelihood of success.
One-Stop Service
Articles of incorporation → registration → visa application → corporate bank account support → visa renewal.
Professional Business Plan Preparation
Over 90% approval rate, including revenue models and market analysis.
Multilingual and Nationwide Support
English and Chinese services available. Online consultations nationwide.
Local Network
Collaboration with local offices, financial institutions, tax accountants, and labor consultants in Kumamoto.
Risk-Free Guarantee
Free reapplication if the visa is denied (conditions apply).
Frequently Asked Questions (FAQ)
Q: Can I obtain a visa with a single-person company?
A: It is possible, but you must still employ two full-time staff members. A single-person company without employees may be treated as a labor visa situation and rejected.
Q: I cannot prepare JPY 30 million in capital.
A: You may use the Designated Activities visa for a two-year preparation period. Phased capital contributions and financing support are also available.
Q: I cannot speak Japanese.
A: N2-equivalent ability is required, but interviews can be conducted with an interpreter and preparatory Japanese lessons can be arranged.
Consultation and Contact
Leave your Japanese startup plans to experienced specialists with a proven track record supporting foreign entrepreneurs.
Shionaga Administrative Scrivener Corporation
Address
1-9-6 Suizenji, Chuo-ku
Kumamoto City, Japan
Phone
096-385-9002 (Weekdays 9:00–19:00)
LINE
Official account available
Services
Nationwide support, online consultations, multilingual service
Official Website
https://shionagaoffice.jp
Book a free consultation today.
We can assess “whether you can obtain the visa” and “estimated costs” in just 30 minutes.