[Foreign Entrepreneurship] A Complete Guide to Starting a Business in Japan

Comprehensive Support for Obtaining the “Business Manager” Visa by Shionaga Administrative Scrivener Corporation

In recent years, the number of foreign entrepreneurs expanding their business into Japan has been steadily increasing. However, to establish a company and successfully manage operations, one must satisfy various legal and practical requirements. The primary regulatory frameworks involved include:

Companies Act (Company Formation)
Immigration Control and Refugee Recognition Act (Status of Residence/Visas)
Foreign Exchange and Foreign Trade Act (FEFTA)
Tax and Social Insurance Laws

Specifically, if you intend to reside in Japan to engage in management activities, obtaining the “Business Manager” (Keiei-Kanri) Status of Residence is essential.

Shionaga Administrative Scrivener Corporation, based in Chuo-ku, Kumamoto City, provides a one-stop, nationwide service in collaboration with other professionals (Tax Accountants, Lawyers, etc.) to handle:

Company incorporation for foreign nationals
Visa applications
FEFTA notifications
Post-establishment administrative procedures

This article explains the practical flow from incorporating a company to obtaining a “Business Manager” visa and launching your business.

Can a Foreign National Establish a Company in Japan?

The short answer: Yes. It is entirely possible for a foreign national to establish a company in Japan. The Japanese Companies Act does not impose restrictions based on nationality. Therefore, the following entities can serve as promoters (founders) or directors:

Foreign nationals residing in Japan (holders of mid-to-long-term visas)
Foreign nationals residing overseas
Foreign corporations

It is also common for foreign companies to establish subsidiaries in Japan. However, being able to establish a company is different from being authorized to manage it. To engage in management activities within Japan, you generally require the “Business Manager” visa.

Key Requirements for the “Business Manager” Visa

When a foreign national manages or administers a business in Japan, their application is reviewed by the Immigration Services Agency. The main requirements are:

1. Business Scale

The business must meet one of the following criteria:

Capital of 5 million yen or more.
Employment of at least two full-time staff members (who are Japanese nationals or certain visa holders).
This demonstrates that the business is of a sustainable scale.

2. Securing an Office

You must secure an independent office space for business use within Japan. Generally, the following cases carry a high risk of rejection:

Virtual offices only
Mail-forwarding services only
Offices with no physical substance
If using a residential-cum-office space, a clear physical separation is required.

3. Business Continuity and Stability

The following documents are scrutinized to ensure the business is viable:

Business Plan
Market Analysis
Revenue and Expenditure Forecasts
List of Prospective Clients/Partners

4. Managerial Role

The “Business Manager” visa is predicated on performing managerial or administrative tasks. Therefore, applications will be denied if the role consists of:

Unskilled labor
On-site manual work only

Process Flow: Incorporation and Visa Acquisition

Formulating the Business Plan: Outline business activities, market research, and financial forecasts.
Securing an Office: Execute a commercial lease agreement. You must submit the contract, floor plans, and photos to Immigration.
Drafting Articles of Incorporation: Define the fundamental rules of the company. For a “Kabushiki Kaisha” (Stock Company), these must be notarized at a Notary Public’s office.
Capital Deposit: Transfer the capital to the promoter’s bank account. If sending funds from overseas, documenting the source of funds and providing remittance records is crucial.
Registration of Incorporation: File with the Legal Affairs Bureau. Registration usually takes 1 to 2 weeks.
Post-Incorporation Notifications: File documents with the Tax Office, Pension Office, Labor Standards Inspection Office, and Hello Work.
Visa Application: Submit the application for the “Business Manager” visa to Immigration with the business plan and company documents. Review usually takes 1 to 3 months.

Required Documents

For Incorporation:

Articles of Incorporation
Certificate of Promoter/Founder
Certificate of Capital Deposit
Registration Application
Letter of Acceptance of Appointment
Note: Foreign nationals may need a Signature Certificate issued by their home country’s embassy.

For Visa Application:

Application for Certificate of Eligibility (COE)
Detailed Business Plan
Certificate of Registered Matters (Touki Tohon)
Office Lease Agreement
Evidence of Capital Source
Business-related materials (contracts, brochures, etc.)

Common Challenges

Difficulty Opening Corporate Bank Accounts: Screening by financial institutions has become very strict. Even after incorporation, some companies struggle to open an account.
Office Requirement Discrepancies: Shared offices or residential-style offices often cause issues during the Immigration review.
Source of Capital: Immigration places heavy emphasis on where the capital came from. Detailed explanations of overseas remittances are required.

Why Choose Shionaga Administrative Scrivener Corporation?

Starting a business in Japan involves a complex intersection of the Companies Act, Immigration Law, and FEFTA. Professional assistance ensures a smooth transition.

One-Stop Support: We handle everything from incorporation and visa applications to licenses and FEFTA filings.
Strategic Business Planning: We help draft practical business plans specifically tailored for Immigration approval.
Nationwide Coverage: Based in Kumamoto, we support clients across Japan via online consultations.

Consultations & Inquiries

Leave your Japanese business setup to the experts.

Shionaga Administrative Scrivener Corporation

Address: 1-9-6 Suizenji, Chuo-ku, Kumamoto City
Phone: 096-385-9002
Email: info@shionagaoffice.jp
Official Website: https://shionagaoffice.jp
Nationwide Support & Online Consultations Available