Complete Guide for Foreigners Starting a Business in Japan: Establishing a Company and Obtaining the “Business Manager” Residence StatusFull Support from Shionaga Administrative Scrivener Corporation up to “Business Manager” Visa AcquisitionIntroductionIn recent years, the number of foreign entrepreneurs launching businesses in Japan has been increasing. However, for foreigners to establish a company and operate it sustainably in Japan, multiple legal and practical requirements must be met, including:
- Companies Act: Procedures for incorporation, officer composition, and articles of incorporation.
- Immigration Control and Refugee Recognition Act (Immigration Law): Suitability review for residence status.
- Foreign Exchange and Foreign Trade Act (FEFTA): Notifications and declarations for capital remittances from abroad.
- Tax and Social Insurance: Prompt filings with relevant authorities after establishment.
- Banking Practices: Capital payment and corporate bank account opening reviews.
For foreigners, the biggest hurdle beyond company registration is obtaining the “Business Manager” (Keiei-Kanri) residence status to stay in Japan and engage in management activities. As of 2026 (following the October 16, 2025 amendment to the Immigration Law), screening criteria have been significantly tightened to prevent sham companies set up solely for visa purposes.Shionaga Administrative Scrivener Corporation, based in Chuo Ward, Kumamoto City, offers a one-stop nationwide service covering everything from articles of incorporation drafting and registration to visa applications and FEFTA notifications.Can Foreigners Establish a Company in Japan?Yes, it is fully possible under the Companies Act. There are no nationality-based restrictions. Foreigners (whether residing in Japan with mid- to long-term status, living overseas, or foreign corporations) can serve as incorporators, officers, or shareholders.However, to reside in Japan and actively manage the business, the “Business Manager” residence status is essential. Without an appropriate residence status, continued stay and operations are not permitted—even after company registration.Key Requirements for the “Business Manager” Visa (as of 2026)Following the October 16, 2025 amendment, criteria were strengthened to curb visa-oriented formal setups. The main requirements (based on the Ministry of Justice/Immigration Services Agency notices) are:
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Item
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Requirement
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Key Points for 2026
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Business Scale
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Paid-in capital (or total contributions) of 30 million yen or more AND at least 1 full-time employee (Japanese national, permanent resident, etc.)
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Previously “500万円 or more OR 2 full-time employees”; now BOTH mandatory (no longer alternative). For sole proprietors: total invested amount (e.g., office setup, 1-year salaries, equipment) ≥ 30 million yen.
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Office
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Independent business premises in Japan (lease contract required)
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Home-office mixing generally not allowed. Virtual/shared offices often rejected; dedicated entrance, signage, and photos required for proof of actual use.
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Business Continuity
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Highly feasible business plan (5-year P&L forecast, market/competitor analysis)
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Confirmation by specialist (e.g., certified SME consultant, CPA, tax accountant) now mandatory. Greatly boosts approval chances.
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Management Reality
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Applicant must substantively engage in decision-making/management (no simple labor)
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Deemed labor-purpose if not proven; management experience required.
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Management Qualifications
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3+ years of business/management experience OR master’s degree (or higher) in relevant field
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New requirement. Startup preparation period under “Designated Activities” can count toward experience.
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Japanese Language Ability
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Applicant OR full-time employee must have JLPT N2 equivalent (B2 level) or higher
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New requirement. Proof (test certificate, work history, etc.) mandatory.
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If requirements cannot be met immediately, apply for “Designated Activities (Startup Preparation)” visa for up to 2 years to prepare (fundraising, office setup, hiring), then switch to “Business Manager.”Overall Flow from Company Establishment to Visa ApplicationStandard timeline: 3–6 months (visa review is the main bottleneck).
- Business plan development & requirement check (industry analysis, 5-year forecast, market data, specialist confirmation).
- Secure office (sign lease, take photos).
- Draft & notarize articles of incorporation (electronic notarial recommended: saves ¥40,000 stamp tax; notary fee ¥30,000–50,000).
- Capital payment (obtain bank balance certificate; overseas remittances need proof of source/transfer records).
- Company registration (Legal Affairs Bureau: usually 7–10 business days).
- Filings with authorities (Tax Office, social insurance, Hello Work within 2 weeks).
- “Business Manager” visa application (Immigration: 1–3 months review).
- Post-approval procedures (corporate bank account, FEFTA notification, sector-specific permits).
Main Required Documents ListFor Company Registration (foreigner-specific notes)
- Articles of incorporation (3 copies): Describe purpose, capital (in Japanese); electronic saves stamp tax.
- Incorporator’s seal certificate: Within 3 months; embassy/consulate signature certificate acceptable as alternative.
- Capital payment certificate: Bank balance proof; overseas transfers require full records/source proof.
- Beneficial owner declaration: FEFTA compliance (mandatory for foreigners).
- Acceptance of appointment: For all officers.
For “Business Manager” Visa Application
- Application form, passport copy, photo (4.5×3.5 cm).
- Certificate of registered matters & articles copy (within 3 months).
- Business plan (with specialist confirmation; include 5-year forecast/market analysis).
- Capital proof (balance ≥30 million yen + source proof).
- Office lease/photos (prove exclusive use; interior/exterior post-occupancy photos).
- Full-time employee contract/payroll (≥1 Japanese/permanent resident, etc.).
- Japanese proficiency proof (JLPT N2 or equivalent for applicant or employee).
- Experience/degree proof (resume, certificates, etc.).
Common Pitfalls and Countermeasures
- Corporate bank account denial: Often due to insufficient business reality. Consult banks in advance; bring specialist.
- Office independence insufficient: Shared partitions or home-use rejected. Ensure dedicated entrance/signage/photos.
- Unclear capital source: Suspected “sham payment”—prepare full transfer records/funding history.
- Weak business plan: Unrealistic forecasts lead to denial. Include concrete data/competitors; get specialist confirmation.
- Non-compliance with 2026 tightening: Missing N2/language or employee requirement causes immediate denial. Always verify latest criteria.
Advantages of Engaging Shionaga Administrative Scrivener CorporationForeign entrepreneurship in Japan spans Companies Act × Immigration Law × FEFTA—complex expertise is crucial. Professional support dramatically improves certainty and approval rates.
- One-stop service: Articles → registration → visa → bank setup → renewals.
- Specialist business plan creation: High approval track record; includes models/analysis with mandatory expert confirmation.
- Multilingual & nationwide online support: English/Chinese; Zoom consultations.
- Local network: Ties with Kumamoto tax accountants, labor consultants, banks.
- Free re-application on denial (under certain conditions).
FAQQ: Can a one-person company get the visa?
A: Company setup is possible, but post-amendment requires ≥1 full-time employee (Japanese/permanent resident, etc.). Solo operation is often deemed labor-purpose and denied.Q: What if I can’t prepare 30 million yen capital?
A: Use “Designated Activities (Startup Preparation)” for up to 2 years to raise funds/increase capital. Startup visa options also available—consult for details.Q: Can I apply without Japanese proficiency?
A: N2 equivalent required, but can be met by full-time employee. Interpreter support or language courses possible—discuss options.Contact UsShionaga Administrative Scrivener Corporation
Address: 1-9-6 Suizenji, Chuo Ward, Kumamoto City
Phone: 096-385-9002 (Weekdays 9:00–19:00)
Email: info@shionagaoffice.jp
LINE: Official account
Official Website: https://shionagaoffice.jp Nationwide, online, multilingual support. Free 30-minute consultation for latest-criteria visa feasibility and cost estimate! Contact us today.