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[Company Formation for Foreign Nationals] The Complete Guide to Starting a Business in Japan
Full Support from Shionaga Administrative Scrivener Corporation — From Business Registration Through “Business Manager” Visa Approval
Introduction
The number of foreign entrepreneurs launching businesses in Japan has grown significantly in recent years. However, establishing and operating a company in Japan as a foreign national requires navigating a complex set of legal and administrative requirements across multiple areas:
- Companies Act: Incorporation procedures, officer composition, and articles of incorporation
- Immigration Control Act: Residency status eligibility review
- Foreign Exchange and Foreign Trade Act (FEFTA): Reporting obligations for capital remittances from abroad
- Tax and Social Insurance: Timely registration with relevant authorities following incorporation
- Banking Practice: Capital deposit procedures and corporate account opening screening
For foreign nationals in particular, obtaining the “Business Manager” residence status — required to reside in Japan and engage in management activities — is the most critical hurdle of all. Following the enforcement of the amended Immigration Control Act in 2025, screening standards have been further tightened as of 2026.
Shionaga Administrative Scrivener Corporation, based in Chuo Ward, Kumamoto City, provides nationwide, one-stop services covering everything from drafting articles of incorporation to company registration, visa applications, and FEFTA filings.
Can Foreign Nationals Incorporate a Company in Japan?
The answer is: absolutely yes, under the Companies Act. There are no restrictions based on nationality. Foreign nationals may serve in any of the following capacities:
- Foreign nationals residing in Japan (holders of mid- to long-term residence status)
- Foreign nationals residing abroad (those without an address or domicile in Japan may still serve as representative director)
- Foreign corporations (for establishing a Japanese subsidiary)
However, anyone wishing to reside in Japan and engage in management activities must obtain the “Business Manager” residence status. Even after successfully incorporating a company, continued residence in Japan is not possible without the appropriate visa.
Key Requirements for the “Business Manager” Visa (2026 Update)
Following the enforcement of the 2025 amendments to the Immigration Control Act, screening criteria have been substantially tightened to prevent the practice of incorporating companies solely for the purpose of obtaining a visa.
| Category | Requirement | 2026 Key Points |
|---|---|---|
| Business Scale | Paid-in capital of ¥30 million or more, OR employment of 2 or more full-time staff (Japanese nationals or permanent residents) | Significantly raised from the previous threshold of ¥5 million |
| Office | A dedicated, independently operated business office in Japan (lease agreement required) | Virtual offices and mixed residential/commercial use are not accepted |
| Business Viability | A feasible business plan including 5-year financial projections and market analysis | Professional preparation is strongly recommended |
| Management Substance | Demonstrated involvement in actual decision-making and management activities | Applications will be denied if activities are deemed equivalent to manual labor |
| Japanese Proficiency | JLPT N2 or equivalent | Newly introduced requirement in 2026; certificate submission is mandatory |
If you are not yet able to meet the above requirements, the “Specified Activities (Business Preparation)” visa allows you to secure a preparation period of up to two years.
Full Process: From Incorporation to Visa Application
Typical Timeline: 2 to 4 months (visa screening is the primary bottleneck)
① Business Plan Development and Requirements Check Develop your business concept, market analysis, and 5-year financial projections, and verify in advance that your application meets visa eligibility requirements.
② Securing an Office Execute a commercial lease agreement (rent schedule, floor plan, and photographs will be required).
③ Drafting Articles of Incorporation and Notarial Authentication Using an electronic articles of incorporation saves ¥40,000 in stamp duty. Notarial authentication fees are typically ¥30,000–¥50,000.
④ Capital Deposit Deposit the paid-in capital into the incorporator’s personal bank account and obtain a certificate of balance. If funds are remitted from overseas, a remittance certificate is also required.
⑤ Company Registration (Legal Affairs Bureau) Registration is typically completed within 7–10 business days of filing. The date of registration becomes the official date of incorporation.
⑥ Notifications to Relevant Authorities Within two weeks of incorporation, submit notifications to the tax office, social insurance office, and public employment security office (Hello Work).
⑦ “Business Manager” Visa Application (Immigration Services Agency of Japan) Submit your application along with the certificate of registered information, business plan, and other required documents. Screening typically takes 1 to 3 months.
⑧ Post-Incorporation Procedures Open a corporate bank account, complete any required FEFTA filings, and obtain necessary business licenses and permits.
Required Documents
Documents Required for Company Registration
| Document | Description | Notes for Foreign Nationals |
|---|---|---|
| Articles of Incorporation (3 copies) | States business purpose, capital amount, etc. (in Japanese) | Using electronic articles saves ¥40,000 in stamp duty |
| Incorporator’s Seal Certificate | Must be issued within the past 3 months | May be substituted with a signature certificate issued by your embassy |
| Capital Deposit Certificate | Bank certificate of balance | Documentation of remittance trail is mandatory |
| Beneficial Owner Declaration | Required under FEFTA | Foreign nationals must submit without exception |
| Letter of Acceptance of Appointment | Required from all officers | — |
Documents Required for “Business Manager” Visa Application
| Document | Description | Notes |
|---|---|---|
| Application Form & Passport Copy | Official form from the Immigration Services Agency | Photo: 4.5 × 3.5 cm |
| Certificate of Registered Information & Notarized Articles of Incorporation | Must be issued within the past 3 months | — |
| Business Plan | Must include financial projections and market analysis | Professional preparation targets an approval rate of 80%+ |
| Capital Certificate | Bank balance certificate (¥30 million or more) | Proof of source of funds is required |
| Office Lease Agreement & Photographs | Must demonstrate exclusive business use | Post-occupancy photographs showing actual use must be included |
| Employment Contracts for Full-Time Staff | For 2 or more Japanese nationals or permanent residents | — |
| JLPT N2 Certificate | — | Newly required; must be included without exception |
Common Pitfalls and Points of Caution
1. Inability to Open a Corporate Bank Account Even after completing company registration, banks may decline to open an account if their compliance review determines that no genuine business substance exists. It is strongly recommended to confirm a bank’s acceptance criteria before submitting your application.
2. Insufficient Office Independence Shared office spaces divided only by partitions, or spaces used for both residential and business purposes, carry a high risk of visa denial. Authorities require a dedicated entrance and a business signage displayed at the office.
3. Unclear Source of Capital Funds If the origin of funds cannot be clearly traced, the capital may be deemed a “sham deposit” (misekane), resulting in visa denial. Ensure that overseas remittance records and documentation of how funds were obtained are fully in order.
4. Inadequate Business Plan Applications may be denied if projected revenues are judged to be unrealistic. It is essential to include concrete market data, prospective clients, and a competitive analysis.
5. Failure to Address 2026 Tightened Screening Standards The absence of an JLPT N2 certificate or failure to meet the two full-time employee requirement will result in immediate denial. Always verify the latest screening criteria before filing.
Why Choose Shionaga Administrative Scrivener Corporation?
Incorporating a company in Japan as a foreign national spans a complex intersection of corporate law, immigration law, and foreign exchange regulations. Engaging a specialist significantly improves your chances of a successful outcome.
- One-Stop Service: End-to-end support from drafting articles of incorporation → registration → visa application → corporate account opening assistance → visa renewal
- Professional Business Plan Preparation: A 90%+ approval track record, with high-quality plans including financial models and market analysis
- Multilingual and Nationwide Service: Consultations available in English and Chinese (Traditional and Simplified); fully accessible online from our Kumamoto base
- Regional Partnership Network: Integrated support through collaboration with Kumamoto-based tax accountants, social insurance labor consultants, and financial institutions
- Free Reapplication on Denial: Under certain conditions, we provide free reapplication support in the event of a denial
Frequently Asked Questions
Q: Can I obtain a visa for a sole-director company? A: Incorporating the company itself is possible, but the visa requires employing two or more full-time staff. An application with only the representative director and no other employees will be denied, as the arrangement is deemed to constitute employment for labor purposes rather than management.
Q: What should I do if I cannot raise ¥30 million in capital? A: You may use the “Specified Activities (Business Preparation)” visa, which provides up to two years to gradually build up the required capital. We are also available to advise on financing options.
Q: Can I apply for a visa even if I don’t speak Japanese? A: JLPT N2-level Japanese proficiency is now a mandatory requirement. While it is possible to attend the immigration interview accompanied by an interpreter, you will still be required to submit a proficiency certificate. We recommend completing an intensive Japanese language course well in advance of your application.
Contact Us
Shionaga Administrative Scrivener Corporation
- Address: 1-9-6 Suizenji, Chuo Ward, Kumamoto City
- Phone: 096-385-9002 (Weekdays, 9:00 AM – 7:00 PM)
- Email: info@shionagaoffice.jp
- LINE: Also available via our official LINE account
- Service Area: Nationwide / Online consultations available / Multilingual support
- Website: https://shionagaoffice.jp
Free Consultations Available! In a 30-minute session, we can assess your visa eligibility and provide a cost estimate. Please don’t hesitate to reach out.