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[Company Formation for Foreigners] Complete Guide to Starting a Business in Japan (2026 Edition)
Full Support up to the “Business Manager” Visa|Shionaga Administrative Scrivener Corporation
Introduction
In recent years, the number of foreign entrepreneurs expanding their businesses in Japan has been steadily increasing.
However, in order for a foreign national to establish and continuously operate a company in Japan, it is necessary to satisfy a combination of legal and practical requirements, including:
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Companies Act: Incorporation procedures, corporate structure, and Articles of Incorporation
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Immigration Law: Eligibility for residence status
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Foreign Exchange and Foreign Trade Act (FEFTA): Reporting of capital inflows from overseas
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Tax and Social Insurance Laws: Post-incorporation filings
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Banking Practice: Capital payment and corporate bank account screening
For foreign entrepreneurs, the most critical hurdle is obtaining the “Business Manager” visa, which is required to reside in Japan and operate a business.
Following amendments to immigration regulations in 2025, screening standards have become more stringent as of 2026.
Shionaga Administrative Scrivener Corporation (Kumamoto City) provides a nationwide one-stop service, covering everything from Articles of Incorporation to registration, visa applications, and FEFTA filings.
Can Foreigners Establish a Company in Japan?
Conclusion: Yes, absolutely.
Under the Companies Act, there are no nationality restrictions.
The following individuals/entities may act as founders, directors, or shareholders:
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Foreign residents in Japan (with mid- to long-term residence status)
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Foreign nationals residing overseas (no Japanese address required; can serve as representative director)
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Foreign corporations (establishing a Japanese subsidiary)
However, to actually reside in Japan and manage the business, obtaining the “Business Manager” visa is essential.
Even after incorporation, you cannot legally stay in Japan without an appropriate residence status.
Key Requirements for the “Business Manager” Visa (2026)
After the 2025 regulatory updates, screening has become significantly stricter to prevent “paper companies” established solely for visa purposes.
Main Requirements
| Category | Requirement | 2026 Key Points |
|---|---|---|
| Business Scale | Capital of JPY 30 million or more, OR employment of at least 2 full-time staff (Japanese/PR, etc.) | Substantially increased from the previous JPY 5 million standard |
| Office | Independent, physical business office in Japan | Virtual offices and residential use are not permitted |
| Business Continuity | Highly feasible business plan (including 5-year projections and market analysis) | Professional preparation strongly recommended |
| Management Involvement | Proof of substantial involvement in decision-making and management | Simple labor roles will lead to rejection |
| Japanese Language Ability | JLPT N2 level or higher | New requirement in 2026; certificate required |
If you cannot immediately meet these requirements, you may utilize the “Designated Activities (Startup Preparation)” visa, which allows up to two years for preparation.
Overall Process: From Company Formation to Visa Application
Estimated timeframe: 2–4 months (visa screening is the main bottleneck)
1. Business Planning
Prepare business model, market analysis, and 5-year financial projections.
2. Securing an Office
Sign a commercial lease (including rent details, layout, and photos).
3. Articles of Incorporation & Notarization
Electronic Articles save JPY 40,000 in stamp tax.
Notary fees: approx. JPY 30,000–50,000.
4. Capital Payment
Transfer funds to the founder’s personal account and obtain proof.
Overseas remittance requires additional documentation.
5. Company Registration
Filed with the Legal Affairs Bureau; completed in 7–10 business days.
6. Post-Incorporation Filings
Submit notifications to the tax office, pension office, and Hello Work within 2 weeks.
7. Visa Application
Submit to Immigration with required documents.
Processing time: approx. 1–3 months.
8. Business Commencement
Open corporate bank account, complete FEFTA filings, obtain licenses if necessary.
Required Documents
For Company Registration
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Articles of Incorporation
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Certificate of signature (in place of seal certificate)
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Proof of capital payment
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Letter of acceptance of office
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Beneficial owner declaration (FEFTA compliance)
For Visa Application
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Application form and passport copy
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Photo (4.5 × 3.5 cm)
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Company registration certificate
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Business plan
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Proof of capital (JPY 30 million or more)
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Office lease agreement and photos
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Employment contracts (2 full-time staff)
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JLPT N2 certificate
Common Issues and Pitfalls
1. Failure to Open a Corporate Bank Account
Banks may reject applications due to lack of business substance.
2. Inadequate Office Setup
Shared or residential offices often lead to visa rejection.
3. Unclear Source of Funds
May be deemed “sham capital” if not properly documented.
4. Weak Business Plan
Unrealistic projections result in denial.
5. Non-compliance with 2026 Standards
Missing N2 certification or staffing requirements leads to immediate rejection.
Advantages of Working with Shionaga Administrative Scrivener Corporation
Foreign business establishment involves multiple legal domains:
Company Law × Immigration Law × FEFTA
Our firm provides:
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One-stop service (incorporation → visa → banking → renewal)
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Professional business plan preparation (high approval track record)
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Multilingual support (English, Chinese)
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Nationwide online service
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Collaboration with tax accountants, labor consultants, and financial institutions
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Free reapplication support (under certain conditions)
FAQ
Q: Can I obtain a visa with a one-person company?
A: Incorporation is possible, but visa approval requires hiring at least two full-time employees.
Q: What if I cannot prepare JPY 30 million in capital?
A: You may use the “Startup Preparation” visa to build capital over up to two years.
Q: Can I apply without Japanese language skills?
A: JLPT N2 level is now required. Interpreter support is possible, but certification must be submitted.
Contact Information
Shionaga Administrative Scrivener Corporation
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Address: 1-9-6 Suizenji, Chuo-ku, Kumamoto City
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Phone: +81-96-385-9002 (Weekdays 9:00–19:00)
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Email: info@shionagaoffice.jp
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LINE: Available
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Service Area: Nationwide / Online / Multilingual
Website: https://shionagaoffice.jp
Free Consultation Available
In a 30-minute consultation, we will assess:
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Visa approval feasibility
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Required capital
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Timeline
Feel free to contact us for an initial consultation.
