🇯🇵 Complete Guide to Company Incorporation in Japan for Foreign Individuals & Corporations

From FEFTA Notifications to the Latest Business Manager Visa Requirements (2026 Edition)

Supervised by Shionaga Administrative Scrivener Corporation

Introduction

Japan remains one of the world’s largest economies and offers exceptional opportunities in industries such as healthcare, IT, tourism, and digital transformation.

Foreign individuals and overseas corporations are legally permitted to establish companies in Japan under the Companies Act. However, unlike Japanese founders, foreign investors must comply with additional requirements, including:

Immigration status (visa)
Foreign Exchange and Foreign Trade Act (FEFTA) filings
Capital remittance procedures
Certified translations and notarization

This guide reflects the latest regulations as of February 2026, including:

FEFTA inward direct investment reporting obligations
Revised Business Manager Visa requirements (effective October 16, 2025)

Shionaga Administrative Scrivener Corporation provides nationwide one-stop support from company formation to FEFTA filings and visa applications. We also assist with reapplications after prior refusals.

Free consultation:
📞 +81-96-385-9002
📧 info@shionagaoffice.jp

1. Can Foreigners or Foreign Companies Establish a Company in Japan?

Yes — absolutely.

There are no nationality or residency restrictions under Japanese corporate law. Both foreign individuals and foreign corporations may incorporate entities in Japan.

However, several critical legal obligations apply:

Item	Key Points
Directors	Even if all directors are non-residents, incorporation is possible. FEFTA notification is required.
Immigration	Incorporation itself is permitted without a visa. However, conducting paid management activities requires an appropriate status of residence (typically Business Manager).
FEFTA	A non-resident acquiring 1% or more equity constitutes “Inward Direct Investment,” triggering mandatory reporting. Violations carry criminal penalties.

2. Choosing Your Corporate Structure

The two most common structures are:

Kabushiki Kaisha (KK – Joint Stock Company)

High credibility with banks and partners
Suitable for medium to large businesses
Statutory costs: approx. JPY 250,000+

Godo Kaisha (GK – LLC)

Lower cost and simpler governance
Suitable for startups or small enterprises
Statutory costs: approx. JPY 100,000+

For non-residents, KK incorporation via promoter formation is generally recommended for smoother compliance.

3. FEFTA (Foreign Exchange and Foreign Trade Act) Notifications

When a foreign individual or corporation invests 1% or more in a Japanese entity, this is classified as Inward Direct Investment under FEFTA.

Types of Filings

Type	Timing	Applicable Cases
Prior Notification	Within 6 months before registration	Sensitive industries or designated countries
Post Notification (standard)	Within 45 days after registration	Most ordinary investments

Submission & Penalties

Filed with: Bank of Japan (forwarded to the Minister of Finance and relevant ministry)
Required form: Notification of Acquisition of Shares / Equity
Penalties for non-compliance:
- Up to 5 years imprisonment or
- Fines up to JPY 5 million
- Possible divestment orders

4. Step-by-Step Incorporation Process for Non-Residents

Typical timeline: 1–3 months

Key Steps

Determine company basics
(name, address, business purpose, capital, officers)
Draft and notarize Articles of Incorporation
Electronic articles eliminate stamp tax. All foreign documents require Japanese translation.
Prepare representative seal or signature certificate
Capital remittance
Funds must be deposited into a Japanese bank account (foreign accounts not accepted).
Company registration at Legal Affairs Bureau
Includes affidavit documents for non-residents.
Post-incorporation filings
Tax offices + FEFTA post notification (within 45 days)

5. Business Manager Visa — Latest Requirements (Post-October 16, 2025 Reform)

To actively manage a Japanese company, foreign nationals must obtain a Business Manager Visa.

Key requirements now include:

Office

Independent physical office
Corporate lease contract mandatory
Virtual offices and residential addresses are generally rejected

Capital / Employment

Either:

Total investment of JPY 30 million or more, or
Employment of at least one full-time Japanese or permanent resident staff

Business Sustainability

Detailed business plan
Financial projections
Mandatory professional evaluation report
(tax accountant / SME consultant / CPA)

Applicant Qualifications

Japanese proficiency (approx. CEFR B2), or
Bachelor’s degree, or
Minimum 3 years management experience

Visa Procedure

Complete company registration
Apply for Certificate of Eligibility (1–3 months review)
Obtain visa at Japanese embassy
Enter Japan and receive Residence Card

⚠ Applying before incorporation carries a high risk of refusal.

6. Required Documents (Overview)

Company Registration

Notarized Articles
Capital payment certificate
Officer consent forms
Signature certificate / affidavit

Visa Application

Company registry certificate
Business plan + professional evaluation
Office lease + photos
Financial projections
Passport, education, language proof

All foreign documents require Japanese translation and notarization.

7. One-Stop Support by Shionaga Administrative Scrivener Corporation

We provide comprehensive assistance including:

Company incorporation
FEFTA filings with Bank of Japan
Business Manager Visa applications
Business licenses
Professional business plan preparation
Reapplication after refusals

Our firm has extensive experience supporting foreign entrepreneurs and overseas corporations entering Japan.

Contact Information

Shionaga Administrative Scrivener Corporation

1-9-6 Suizenji, Chuo-ku, Kumamoto 862-0950 Japan
📞 +81-96-385-9002
📧 info@shionagaoffice.jp

We support your successful entry into the Japanese market with reliable legal expertise.