2026 Complete Guide for Foreign Entrepreneurs in Japan

Company Formation & “Business Manager” Visa Strategy
Comprehensive Support by Shionaga Administrative Scrivener Corporation

Introduction

Japan continues to attract global entrepreneurs seeking a stable and sophisticated business environment.
However, establishing and operating a company in Japan requires navigating multiple overlapping legal and practical frameworks:

Companies Act: Incorporation procedures, corporate governance, and Articles of Incorporation
Immigration Law: Eligibility for residence status and business activity
Foreign Exchange and Foreign Trade Act (FEFTA): Reporting obligations for foreign capital
Tax & Social Insurance: Mandatory filings immediately after incorporation
Banking Practice: Strict due diligence for capital verification and account opening

Particularly important is the “Business Manager” (Keiei-Kanri) visa, which is required for foreign nationals to reside in Japan and manage a business.

While screening has become more rigorous in recent years, there has been no uniform statutory shift to fixed thresholds such as JPY 30 million capital or mandatory JLPT certification.
Instead, immigration authorities apply a substance-over-form evaluation, focusing on the credibility, scale, and sustainability of the business.

Shionaga Administrative Scrivener Corporation (Kumamoto City) provides nationwide one-stop support, ensuring full compliance with current legal and practical standards.

Can Foreigners Establish a Company in Japan?

Yes. Under Japanese law, there are no nationality-based restrictions on company formation.

Foreign nationals may act as:

Incorporators, directors, and shareholders
Representative directors (even if residing overseas)
Parent entities establishing Japanese subsidiaries

However, incorporation alone does not grant residency.
To live in Japan and operate the business, obtaining the “Business Manager” visa is essential.

“Business Manager” Visa: Core Requirements (2026 Practical Standards)

Immigration review focuses on whether the business is genuine, stable, and sustainable, rather than formalistic criteria alone.

1. Business Base (Office Requirement)

A secured, independent physical office in Japan is required
Virtual offices or purely residential use are generally not accepted

2. Business Scale (One of the Following)

Capital of at least JPY 5 million, or
Employment of at least two full-time staff (Japanese nationals, permanent residents, etc.)

※ This “5 million yen OR 2 employees” standard remains the primary baseline in practice.

3. Business Viability

A credible and detailed business plan is essential
Typically includes:
- Market analysis
- Revenue model
- 3–5 year financial projections

4. Management Involvement

The applicant must actively engage in management and decision-making
Activities resembling simple labor may lead to denial

5. Additional Practical Factors

While not uniformly mandatory, the following significantly influence approval:

Relevant business experience or background
Japanese or English communication ability
Clear explanation of funding sources
Operational readiness (contracts, clients, etc.)

Alternative Option

If requirements are not yet met, applicants may consider:

“Designated Activities (Startup Preparation)” status
Startup visa programs offered by certain municipalities

These allow a preparation period (typically up to 1–2 years).

Timeline: From Incorporation to Business Launch

Estimated timeframe: 2–4 months (may vary depending on visa review)

1. Business Planning

Develop a structured business model and financial projections.

2. Securing Office Space

Execute a commercial lease agreement with supporting documentation.

3. Articles of Incorporation

Draft and notarize (electronic format reduces stamp tax by JPY 40,000).

4. Capital Payment

Transfer capital and prepare documentation (including source of funds).

5. Company Registration

Filed with the Legal Affairs Bureau (approx. 7–10 business days).

6. Post-Incorporation Filings

Tax office, pension office, and labor office notifications (within 2 weeks).

7. Visa Application

Submit to Immigration Services Agency (typically 1–3 months).

8. Business Launch

Corporate bank account, licenses, and operational setup.

Common Pitfalls & Practical Solutions

1. Bank Account Rejection

Financial institutions require clear evidence of business legitimacy.
→ Advance consultation and documentation preparation are essential.

2. Office Non-Compliance

Shared or temporary setups often fail immigration standards.
→ Ensure exclusive, business-use premises.

3. Unclear Source of Funds

Unverified capital may be treated as fictitious.
→ Maintain a transparent and traceable funding history.

4. Weak Business Plan

Lack of numerical or market basis leads to denial.
→ Professional preparation significantly improves success rates.

5. Misunderstanding “Stricter Screening”

Recent trends reflect stricter evaluation, not fixed new legal thresholds.
→ Accurate interpretation of current practice is critical.

Why Choose Shionaga Administrative Scrivener Corporation?

Comprehensive One-Stop Service

From incorporation to visa acquisition and renewal.

Professional Business Planning

High-quality, immigration-ready business plans.

Multilingual Support

English and Chinese consultations available (online nationwide).

Integrated Network

Collaboration with tax accountants, labor consultants, and financial institutions.

Reapplication Support

Free reapplication support available under certain conditions.

FAQ

Q: Can I start a company alone?

A: Yes. A single shareholder/director company is allowed.
For the visa, you must meet either the capital requirement (JPY 5 million) or employment criteria.

Q: I do not have sufficient capital yet. What are my options?

A: You may utilize a startup visa or “Designated Activities” status to prepare your business and funding.

Q: Is Japanese language ability required?

A: It is not a strict legal requirement.
However, communication ability and operational feasibility are important factors in practice.

Contact & Free Consultation

Shionaga Administrative Scrivener Corporation

Address: 1-9-6 Suizenji, Chuo-ku, Kumamoto City, Japan
Phone: +81-96-385-9002 (Weekdays 9:00–19:00)
Email: info@shionagaoffice.jp
Website: https://shionagaoffice.jp

Free 30-Minute Consultation

We provide a personalized assessment of:

Visa approval feasibility
Required capital and structure
Timeline and strategy

Online consultations available nationwide.