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- Conditions for Opening a Business in Japan! When is a Business Management Visa Japan Required?
2024/6/7
2025/8/26
Corporate Registration
Conditions for Opening a Business in Japan! When is a Business Management Visa Japan Required?
Foreigners can also establish a company in Japan. However, certain visa types may impose conditions on establishing a company.
The key points of this article are as follows:
| ✓ Anyone, regardless of nationality, can establish a company without special conditions.
✓ Permanent residents and long-term residents can be involved in a company as managers without special conditions. ✓ Permanent residents and those with residency statuses other than the Business Management Visa may not be able to become managers. ✓ When establishing a company as something other than a manager, practical experience in business management may be required. |
This article summarizes what foreigners need to know when establishing a company. It also introduces the conditions required for company establishment and how to obtain a Business Management Visa.
By understanding the necessary residency status for company establishment, you will be able to establish a company smoothly. Please take a look.
1.Conditions for Opening a Business in Japan and Become Managers
Regardless of nationality or whether residing domestically or abroad, it is possible to establish a company in Japan. However, depending on the residency status, it may not be possible to act as a manager of that company within Japan. Here are the three types of residency statuses required to act as a manager within Japan:
- Permanent residents and long-term residents
- Holders of a Business Management Visa
- Holders of other types of residency statuses
1-1. Holding Residency Status as a Permanent Resident or Long-Term Resident
If you hold any of the following residency statuses that do not impose work restrictions, you can establish a company and become a manager without any special conditions:
- Permanent Resident
- Spouse or Child of a Permanent Resident
- Spouse or Child of a Japanese National
- Long-Term Resident
The procedure for establishing a company is the same as for Japanese nationals. Additionally, since you are free to work in Japan, you can also be involved in the company in roles other than as a manager, such as a branch manager or director.
1-2. Holding a “Business Management Visa Japan”
Those who hold a “Business Management Visa” can manage a company within Japan. However, if you establish a company in Japan and manage it from abroad, a Business Management Visa is not required.
For those who do not yet have a “Business Management Visa” but wish to establish a company and manage it within Japan, it is necessary to obtain the visa by fulfilling all of the following conditions:
- Securing an office
- Having a capital of at least 5 million yen or employing at least two people
- Ensuring the business has continuity and stability
Let’s look at each of these conditions in detail.
[Important] Possible Changes to the Requirements for the Business Manager Visa (as of August 2025)
There are reports suggesting that the requirements for obtaining a Business Manager Visa may become stricter around October 2025. Although this is not confirmed information at this stage, the following points have been highlighted as potential changes:
・Increase in capital requirements
(Current) ¥5 million or more → (Proposed revision) ¥30 million or more
・Mandatory employment of full-time staff
(Current) Choice between capital requirement or hiring → (Proposed revision) In addition to the capital requirement, employment of at least one full-time staff member will be mandatory
・Introduction of requirements for the manager’s background and academic qualifications
“At least 3 years of management/administration experience” or “A master’s degree or higher related to management/administration”
For those considering starting a business in Japan or applying for a Business Manager Visa, it is necessary to prepare on the assumption that such changes may take place.
For the latest information and procedures tailored to your specific situation, please feel free to contact our office.
1-2-1. [Condition 1] The business office must be secured.
The business office must be secured within Japan. To demonstrate that it is not a paper company, submit the “Real Estate Registry Certificate” if the property is owned, or the “Lease Agreement” if it is a rental property.
1-2-2. [Condition 2] A capital of at least 5 million yen or the employment of two or more people.
It is necessary to prepare at least 5 million yen as capital. However, it is not required for one person to prepare the entire 5 million yen. The total amount of investment must be 5 million yen or more, so if there are other company founders, they can jointly prepare the funds.
Alternatively, if the capital is not at least 5 million yen, the condition can also be met by employing two or more full-time employees. However, the employees must be one of the following:
- Japanese nationals
- Spouses or other relatives of Japanese nationals
- Special permanent residents
- Permanent residents
- Spouses or other relatives of permanent residents
- Long-term residents
1-2-3. [Condition 3] The business must have continuity and stability.
The business to be established must also have continuity and stability. Submit documents such as the business content, revenue and expenditure projections, and a business plan to demonstrate continuity and stability.
2.Procedure for Foreigners to Establish a Company and Obtain a Business Management Visa
Permanent residents, spouses or other relatives of permanent residents, spouses or other relatives of Japanese nationals, and long-term residents can also establish a company in Japan. However, they cannot become the business owner themselves.
To become a business owner, it is necessary to obtain a Business Management Visa. Let’s look at how to obtain this visa.
To establish a company and become a business owner in Japan, you must have one of the following qualifications: permanent resident, spouse or other relative of a permanent resident, spouse or other relative of a Japanese national, long-term resident, or a “Business Management Visa.”
While it is not immediately possible to become a permanent resident, spouse or other relative of a permanent resident, spouse or other relative of a Japanese national, or long-term resident, it is possible to obtain a “Business Management Visa” through specific procedures. Follow these steps to apply for a “Business Management Visa.”
- Secure an office.
- Establish a company.
- Apply for a “Business Management Visa.”
2-1.Secure an office.
Secure a business office. While it is possible to use a room in your home as a business office, preparing a separate location will make it less likely for the business to be suspected of being a paper company.
If you use your home as a business office, it is desirable to clearly distinguish between the residential area and the business office, such as using a separate entrance. Additionally, you can clearly separate the residence and the office by having separate nameplates and appropriately dividing utility costs (e.g., based on the proportion of the residence and office areas).
2-2.Establish a company.
After securing a business office, establish the company. Prepare the articles of incorporation, deposit the capital, and apply for company registration with the Legal Affairs Bureau.
Additionally, submit a notification of business commencement to the tax office and other relevant authorities. If starting a business such as a restaurant or travel agency, you will also need to complete the necessary licensing procedures.
2-3.Apply for a “Business Management Visa.”
After meeting the conditions explained in 1-2, apply for a “Business Management Visa” at the Immigration Bureau following the establishment of the company. Submit the following documents:
- Application for Certificate of Eligibility
- A facial photograph taken within the last three months
- Business plan
- Copy of the certificate of registered matters (if company registration is not yet complete, a copy of the articles of incorporation)
- Copy of the lease agreement if the office is a rental property
- If the business has already started, copies of financial statements, etc
- Documentation on full-time employees or proof of capital exceeding 5 million yen
- Documentation on executive compensation
- Licenses for businesses requiring permits
Depending on the type of residency, you may be required to submit different documents. Be sure to inquire about the required documents at the Immigration Bureau before visiting.
3.Conditions for Foreigners to be Involved as Managers in a Company
Even if you are not a business owner, you can be involved in the company. For example, when involved as a director or branch manager, you may be able to obtain a “Business Management Visa” if you meet the following conditions:
- At least three years of practical experience in management
- Receiving a salary comparable to that of others engaged in the same duties
3-1. At least three years of practical experience in management.
You must have at least three years of experience in business management or administration. If you specialized in management or administration in graduate school, that period can also be included.
3-2. Receiving a salary comparable to that of others engaged in the same duties.
You must receive a salary that is comparable to or higher than that of a Japanese person performing the same duties. When applying for a “Business Management Visa,” you will need to submit documents that show your salary, such as pay slips.
4.Summary
In this article, we explained the important things that foreigners should know when establishing a company.
To summarize the content, the following points were covered:
| ✓ Anyone, regardless of nationality, can establish a company without special conditions.
✓ Permanent residents and long-term residents can be involved in a company as managers without special conditions. ✓ Permanent residents and those with residency statuses other than the Business Management Visa may not be able to become managers. ✓ When establishing a company as something other than a manager, practical experience in business management may be required. |
Foreigners can establish a company, but depending on their residence status, they may not be able to become the business owner. When establishing a company as a business owner, it is necessary to have the appropriate residence status.
If you do not have the appropriate residence status, you will need to aim to obtain a Business Management Visa. If obtaining a Business Management Visa is difficult, consider having a person with the appropriate qualifications become the business owner and getting involved as a manager.
Article supervision
Representative Judicial Scrivener and Administrative Scrivener, Legal Estate Office
Ryo Saito
A judicial scrivener with over 10 years of practical experience and more than 5,000 consultation cases. Expert in a wide range of fields including laws and contracts related to overseas inheritance and business, as well as compliance advice. Recently, there has been an increase in international inheritance cases, particularly where some parties reside abroad, and vigorous efforts are being made to address these issues.
Our Key Accomplishments:
We handle over 100 company formations and real estate/corporate registrations annually.
We have assisted clients from over 20 countries, including the United States, China, and South Korea, with real estate transactions and business startups.
Our experience spans a wide range of industries, such as IT, food and beverage, trade, and consulting.
As certified legal professionals ("Shiho-shoshi" and "Gyosei-shoshi"), our strength lies in providing one-stop support for everything from the initial company registration and business visa applications to subsequent changes in company officers and capital increases. Please feel free to contact us for a consultation.
