2026 Complete Guide for Foreign Entrepreneurs in Japan Establishing a Company & Navigating the “Business Manager” Visa

Comprehensive Support by Shionaga Administrative Scrivener Corporation

Introduction

In 2026, Japan remains a highly attractive destination for global entrepreneurs. However, building and maintaining a viable business here requires navigating multiple, interrelated legal and practical requirements:

Companies Act: Incorporation procedures, officer structure, and preparation of Articles of Incorporation
Immigration Law: Meeting the suitability criteria for the appropriate status of residence
Foreign Exchange and Foreign Trade Act (FEFTA): Notifications and filings for capital remittances from overseas
Tax & Social Insurance: Prompt post-incorporation filings with the relevant authorities
Banking Practice: Capital payment procedures and strict screening for opening a corporate bank account

For foreign nationals, the key challenge is not only incorporating a company, but also obtaining the “Business Manager” (Keiei–Kanri) status of residence, which is essential to legally reside in Japan and engage in management. Following the 2025 amendment to the Immigration Control Act, screening standards have become significantly stricter as of 2026, particularly to prevent “visa-only” or purely formal company setups.

Shionaga Administrative Scrivener Corporation, based in Kumamoto City, provides a nationwide one-stop service covering Articles of Incorporation, registration, visa applications, and FEFTA-related filings.

Can foreigners establish a company in Japan?

Yes. Under the Companies Act, there are no nationality-based restrictions. You may serve as an incorporator, officer, or shareholder in any of the following situations:

Foreign residents in Japan (holders of a mid- to long-term status of residence)
Foreign residents overseas (non-residents may still serve as Representative Directors)
Foreign corporations (establishing a Japanese subsidiary)

However, incorporation alone is not sufficient. To reside in Japan and actually manage the business on an ongoing basis, you must obtain the “Business Manager” status of residence. Even if your company is properly registered, you cannot lawfully continue to stay and manage it without an appropriate status of residence.

Key requirements for the “Business Manager” visa (2026 standards)

After the 2025 amendment, screening has been tightened to eliminate “sham” or purely formal incorporations made solely for visa purposes. As of 2026, the main requirements are as follows:

Business scale

Paid-in capital of at least JPY 30 million, or
Employment of at least two full-time staff who are Japanese nationals, permanent residents, etc.

This is a substantial increase from the previous JPY 5 million capital benchmark.

Office space

A physically independent, real business office located in Japan
A lease agreement is mandatory
Virtual offices and mixed residential–commercial or home-office arrangements are generally not accepted

Business continuity

A highly feasible business plan is required
Must include at least 5-year financial projections and market analysis
Preparation by a qualified professional is strongly recommended to enhance credibility

Substance of management

The applicant must be substantially involved in decision-making and management
If the role is judged to be simple labor rather than management, the application will be refused

Language ability

Japanese language ability at JLPT N2 level or higher
This is a new requirement introduced in 2026, and submission of an official certificate is mandatory

If you cannot meet these requirements immediately, you may consider using the “Designated Activities (Startup Preparation)” visa, which can provide up to two years to prepare—securing capital, hiring staff, and refining your business plan.

Timeline: From incorporation to visa and operation

Estimated duration: 2–4 months (The visa examination period is typically the main bottleneck.)

Strategy & requirement check
- Industry and market analysis
- Preparation of a 5-year profit and loss forecast
- Preliminary confirmation that your plan meets “Business Manager” visa criteria
Securing premises
- Execution of a commercial lease agreement
- Preparation of supporting documents such as rent statements, floor plans, and photographs of the office
Articles of Incorporation: Drafting and notarization
- Drafting the Articles in Japanese (business purposes, capital, corporate structure, etc.)
- Using electronic Articles of Incorporation to save JPY 40,000 in stamp tax
- Notary fees at the notary office are typically around JPY 30,000–50,000
Capital payment
- Payment of capital into the incorporator’s personal bank account
- Obtaining a bank balance certificate
- For overseas remittances, detailed remittance records and documents showing the flow and source of funds are required
Company registration (Legal Affairs Bureau)
- Filing incorporation documents with the competent Legal Affairs Bureau
- Registration is usually completed within 7–10 business days, and the completion date becomes the official date of incorporation
Statutory filings
- Within approximately 14 days after incorporation, submit required notifications to:
  - Tax office
  - Pension office
  - Public Employment Security Office (Hello Work), etc.
“Business Manager” visa application
- Filed with the Immigration Services Agency of Japan
- Attach the Certificate of Registered Matters, certified Articles of Incorporation, business plan, and other supporting documents
- Standard review period: 1–3 months
Post-launch procedures
- Opening a corporate bank account
- FEFTA-related filings, if required
- Obtaining any sector-specific licenses or permits necessary for your business

Common pitfalls and how we address them

1. Corporate bank account rejection Even with a completed registration, many banks refuse to open accounts if they determine there is insufficient “business reality” based on their compliance screening. We help you prepare a robust business profile and recommend confirming each bank’s criteria and required documents in advance.

2. Non-compliant office arrangements Shared spaces divided only by partitions or home–office setups are major red flags in visa examinations and are often treated as non-compliant. We guide you in ensuring your office meets the “independent, exclusive-use business premises” standard, including dedicated entrance and business signage.

3. Unclear source of funds If the origin of your capital is unclear, it may be treated as “fictitious capital payment” and lead to visa refusal. We assist you in preparing a transparent audit trail, including overseas remittance records, bank statements, and funding agreements.

4. Weak or unrealistic business plan If projected earnings are unrealistic or market analysis is superficial, authorities may conclude that the business lacks continuity and deny the application. We work with you to develop a data-backed, concrete, and logically structured business plan, including market data, target clients, competitor analysis, and marketing strategy.

5. Failure to meet the tightened 2026 standards Lack of a JLPT N2 certificate or failure to meet the capital or staffing requirements can result in immediate refusal. We carefully review every document and requirement against the latest standards and official notices before submission.

Why choose Shionaga Administrative Scrivener Corporation?

Starting a business in Japan as a foreign entrepreneur is a multi-layered legal field, spanning the Companies Act, Immigration Law, and FEFTA. Working with a specialist significantly increases both procedural accuracy and the likelihood of visa approval.

Integrated one-stop support From the first draft of your Articles of Incorporation and company registration to visa application, corporate bank account support, and visa renewal
Professionally prepared business plans High-quality plans including financial models and market analysis, prepared with the aim of achieving an approval rate of 80% or higher
Multilingual, nationwide service Consultations available in English and Chinese (traditional and simplified) Based in Kumamoto, but all procedures can be completed online for clients across Japan
Regional network, national reach Strong ties with local tax accountants, social insurance and labor consultants, and financial institutions in Kumamoto, supporting clients throughout Japan
Free re-application in case of refusal Subject to certain conditions, we provide free support for re-application if your initial application is refused

FAQ

Q: Can I still establish a one-person company? A: Yes. Incorporation of a one-person company is legally possible. However, for the “Business Manager” visa, you must satisfy the business scale requirement (capital of JPY 30 million or at least two full-time employees who are Japanese nationals, permanent residents, etc.). If only the representative is effectively working as a regular employee, the activity may be treated as labor rather than management, and the visa is likely to be refused.

Q: What if I cannot prepare JPY 30 million in capital right away? A: You may consider the “Designated Activities (Startup Preparation)” visa, which can grant up to two years to prepare—refining your business plan, gradually building capital, and arranging external funding. We also provide consultation on fundraising strategies.

Q: Can I apply even if I do not speak Japanese? A: As of 2026, JLPT N2-level Japanese ability has become a mandatory requirement for the “Business Manager” visa, and an official certificate must be submitted. While interpreters can assist in certain procedures, you will still need to demonstrate the required language level. We therefore recommend considering an intensive Japanese language course in advance.

Contact us for a free consultation

If you are considering starting a business in Japan as a foreign entrepreneur, partnering with an experienced professional can greatly reduce risk and streamline the entire process.

Shionaga Administrative Scrivener Corporation

Address: 1-9-6 Suizenji, Chuo Ward, Kumamoto City, Japan
Phone: 096-385-9002 (Weekdays 9:00–19:00)
Email: info@shionagaoffice.jp
Official Website: https://shionagaoffice.jp

Online consultations available nationwide.

In a 30-minute free consultation, we will:

Assess the feasibility of obtaining a visa, and
Provide an estimate of the expected costs based on the latest 2026 standards.

Feel free to contact us and take your first concrete step toward establishing your business in Japan.