Incorporating a Company in Japan as a Foreigner A Complete Guide to Starting a Business in Japan
Full Support up to Obtaining the “Business Manager” Status of Residence by Gyoseishoshi Corporation Shionaga Office
Introduction
In recent years, the number of foreign entrepreneurs launching businesses in Japan has been steadily increasing. However, for a foreign national to establish a company in Japan and continue operating it, a range of legal and practical requirements across multiple fields must be satisfied, including:
- Companies Act: Incorporation procedures, board structure, preparation of Articles of Incorporation
- Immigration Control Act: Examination of eligibility for the appropriate status of residence
- Foreign Exchange and Foreign Trade Act (FEFTA): Notifications and filings for capital remittances from overseas
- Tax and Social Insurance: Prompt notifications to the relevant authorities after incorporation
- Banking Practice: Payment of share capital and screening for opening a corporate bank account
For foreign nationals in particular, the biggest hurdle is not only establishing the company itself, but also obtaining the “Business Manager” status of residence, which allows them to reside in Japan and actually manage the business. Following the 2025 amendment to the Immigration Control Act, the examination criteria have become even stricter as of 2026.
Gyoseishoshi Corporation Shionaga Office, located in Chuo Ward, Kumamoto City, provides a nationwide one-stop service covering everything from drafting Articles of Incorporation and registration to visa applications and FEFTA filings.
Can a foreigner establish a company in Japan?
Conclusion: Under the Companies Act, it is entirely possible. There are no restrictions based on nationality. A foreign national can become a promoter, director, or shareholder in any of the following capacities:
- Foreign residents in Japan (holders of a mid- to long-term status of residence)
- Foreign residents overseas (even without an address or residence in Japan, they may serve as Representative Director)
- Foreign corporations (establishing a Japanese subsidiary)
However, to actually reside in Japan and engage in business management, obtaining the “Business Manager” status of residence is essential. Even after the company is established, you cannot continue to stay in Japan without an appropriate status of residence.
Key requirements for the “Business Manager” visa (as of 2026)
After the 2025 amendment to the Immigration Control Act, the examination criteria have been significantly tightened to prevent “formal” company establishments made solely for the purpose of obtaining a visa.
Main requirements as of 2026:
| Item | Requirement | Key points in 2026 |
|---|---|---|
| Business scale | Paid-in capital of at least JPY 30 million, or employment of at least 2 full-time staff (Japanese nationals, permanent residents, etc.) | Substantial increase from the previous JPY 5 million standard |
| Office | A physically independent, real business office in Japan (lease agreement required) | Virtual offices and mixed residential–commercial use are not accepted |
| Business continuity | A highly feasible business plan, including 5-year financial projections and market analysis | Preparation by a professional is strongly recommended |
| Substance of management | Proof of substantial involvement in decision-making and management activities | If the role is deemed simple labor, the application will be refused |
| Japanese language ability | JLPT N2 level or higher | Newly introduced requirement in 2026; submission of a certificate is mandatory |
If you are unable to meet these requirements immediately, you may utilize the “Designated Activities (Start-up Preparation)” visa, which allows you to secure a preparation period of up to two years.
Overall process: from company incorporation to visa application
Standard timeframe: 2–4 months (the visa examination period is usually the main bottleneck)
1. Drafting the business plan and checking requirements Prepare your business model, market analysis, and 5-year financial projections, and confirm in advance whether your plan meets the “Business Manager” visa criteria.
2. Securing an office Enter into a lease agreement for a business-use office. You will need documents such as a rent statement, floor plan, and photographs of the premises.
3. Preparing and notarizing the Articles of Incorporation Draft the Articles of Incorporation in Japanese, specifying business purposes, capital, and corporate structure. By using an electronic Articles of Incorporation, you can save JPY 40,000 in stamp tax. Notary fees at the notary office are typically around JPY 30,000–50,000.
4. Payment of share capital Pay the capital into the promoter’s personal bank account and obtain a bank balance certificate. If the funds are remitted from overseas, a remittance certificate and related documents will be required.
5. Company registration (Legal Affairs Bureau) File the incorporation registration with the competent Legal Affairs Bureau. Registration is usually completed within 7–10 business days after filing, and the date of completion becomes the official date of incorporation.
6. Notifications to relevant authorities Within approximately two weeks after incorporation, submit the necessary notifications to the tax office, pension office, and Public Employment Security Office (Hello Work), among others.
7. Application for the “Business Manager” visa (Immigration Services Agency of Japan) Submit the application with supporting documents such as the Certificate of Registered Matters and the business plan. The standard examination period is about 1–3 months.
8. Procedures after starting business operations Open a corporate bank account, make any required FEFTA filings, and obtain any necessary business licenses or permits depending on your industry.
List of required documents
Documents required for company incorporation registration
| Document | Content | Points specific to foreign nationals |
|---|---|---|
| Articles of Incorporation (3 copies) | States business purposes, capital, etc. (in Japanese) | Using electronic Articles of Incorporation saves JPY 40,000 in stamp tax |
| Seal certificate of the promoter | Issued within the last 3 months | A signature certificate issued by an embassy may be accepted as a substitute |
| Certificate of payment of capital | Bank balance certificate, etc. | Documentation proving the remittance route is required, especially for overseas remittances |
| Beneficial owner declaration | Declaration of the company’s beneficial owner | Required for FEFTA-related compliance; mandatory when foreigners are involved |
| Letter of acceptance of office | For all directors and officers | — |
Documents required for the “Business Manager” visa application
| Document | Content | Remarks |
|---|---|---|
| Application form and passport copy | Prescribed form by the Immigration Services Agency | — |
| Photograph (4.5 × 3.5 cm) | Recent photo of the applicant | — |
| Certificate of Registered Matters and certified copy of Articles of Incorporation | Issued within the last 3 months | — |
| Business plan | Includes financial projections and market analysis | Aim for an approval rate of 80% or higher with a professionally prepared plan |
| Proof of capital | Bank balance certificate showing at least JPY 30 million | Documentation proving the source of funds is required |
| Office lease agreement and photos | Evidence that the office is used exclusively for business | Attach photos showing the actual state of occupancy |
| Employment contracts for full-time staff | Contracts for at least 2 full-time employees (Japanese nationals, permanent residents, etc.) | Social insurance enrollment may also be checked |
| JLPT N2 certificate | Proof of Japanese language ability at JLPT N2 level or higher | Newly introduced requirement; must be attached |
Common issues and important points
1. Inability to open a corporate bank account Even after registration is completed, banks may refuse to open a corporate account if they determine that there is “no real business activity” based on their compliance screening. It is strongly recommended to confirm the screening criteria and required documents of your prospective bank in advance.
2. Insufficient independence of the office Shared offices separated only by partitions or spaces used as both residence and office carry a high risk of being rejected in the visa examination. A dedicated entrance and a business nameplate are generally required to demonstrate that the office is an independent business facility.
3. Unclear source of capital If the origin of funds is unclear, the capital may be regarded as “fictitious payment,” and the visa application may be refused. You should prepare complete documentation such as overseas remittance records and documents explaining how the funds were raised.
4. Lack of persuasiveness in the business plan If the projected earnings are deemed unrealistic or the market analysis is insufficient, the business may be considered unsustainable, leading to refusal. It is crucial to include concrete and logical descriptions of market data, potential clients, competitors, and your marketing strategy.
5. Failure to respond to the stricter examination standards in 2026 Failure to obtain a JLPT N2 certificate or to meet the requirement of employing at least two full-time staff can result in immediate refusal. Always confirm the latest examination criteria before applying and resolve any deficiencies in advance.
Advantages of working with Gyoseishoshi Corporation Shionaga Office
Starting a business in Japan as a foreign national is a complex field that spans the Companies Act, Immigration Control Act, and FEFTA. By engaging a specialist, you can significantly increase both the accuracy of procedures and the likelihood of visa approval.
- One-stop service: Comprehensive support from drafting Articles of Incorporation and registration to visa application, corporate bank account support, and visa renewal
- Professional preparation of business plans: High-quality business plans including financial models and market analysis, with an approval track record of over 90%
- Multilingual and nationwide support: Consultations available in English and Chinese (traditional and simplified). Based in Kumamoto, but all procedures can be completed online nationwide
- Regional support network: One-stop assistance in collaboration with local tax accountants, social insurance and labor consultants, and financial institutions in Kumamoto
- Free re-application in case of refusal: Under certain conditions, if your application is refused, we will support a re-application free of charge
Frequently Asked Questions (FAQ)
Q: Can I obtain a visa with a one-person company? A: Incorporation of a one-person company is legally possible. However, for the “Business Manager” visa, you are required to employ at least two full-time staff members who are Japanese nationals, permanent residents, etc. If only the representative director is working and effectively acting as a regular employee, the activity may be regarded as labor rather than management, and the visa is likely to be refused.
Q: What if I cannot prepare JPY 30 million in capital immediately? A: In that case, you can consider using the “Designated Activities (Start-up Preparation)” visa, which allows a preparation period of up to two years. During this period, you can gradually accumulate capital and work on fundraising from investors or financial institutions. We also provide consultation on funding strategies.
Q: Can I apply for the visa even if I do not speak Japanese? A: As of 2026, Japanese language ability at JLPT N2 level has become a mandatory requirement. While it is possible to have an interpreter accompany you during certain procedures, you will still need to submit an official certificate. We therefore recommend considering an intensive Japanese language course in advance.
Consultation and Contact
For foreign entrepreneurs planning to start a business in Japan, working with an experienced professional can greatly reduce risk and streamline the entire process.
Gyoseishoshi Corporation Shionaga Office
- Address: 1-9-6 Suizenji, Chuo-ku, Kumamoto City, Kumamoto
- Phone: 096-385-9002 (Weekdays 9:00–19:00)
- Email: info@shionagaoffice.jp
- LINE: Inquiries accepted via our official LINE account
- Service area: Nationwide, online consultations available, multilingual support
- Website: https://shionagaoffice.jp
Free initial consultation available In a 30-minute consultation, we will assess:
- The likelihood of obtaining a visa, and
- An estimate of the required costs.
Please feel free to contact us and take the first step toward establishing your business in Japan.