Opening a Business in Japan: Costs, Visas, Procedures

Are you feeling unsure about how to start if you want to open a business in Japan as a foreigner?
Are you worried about the Business Manager Visa or the costs?
Is it even possible to complete the procedures while living overseas?

On October 16, 2025, the requirements for the “Business Manager” visa, a key residence status for foreign entrepreneurs, were significantly tightened, and some of the requirements for establishing a company in Japan were revised.

This article provides a thorough explanation from judicial scriveners and administrative scriveners who have supported many foreign entrepreneurs.
We will walk you through the requirements, procedures, and necessary documents for setting up a company in Japan. We also address common concerns such as costs, visa issues, and post-establishment procedures, with practical points to watch out for.

By reading this article, you will clearly understand what steps you need to take next.

When foreigners establish a company in Japan, company registration (corporate registration) is required, just as it is for Japanese residents establishing a company. However, to actually stay in Japan for the medium to long term and operate as a manager, obtaining a Business Manager Visa is necessary.

The key points of this article are as follows.

✓　When foreigners establish a company in Japan and manage it from overseas, no visa is required. However, to stay in Japan for the medium to long term and manage the company, a Business Manager Visa or permanent residency is necessary. ✓　To start a business in Japan, company registration and a bank account are necessary. Each of these procedures requires a signature certificate and a seal certificate. ✓As of October 16, 2025, the requirements for the Business Manager visa have been significantly tightened. A minimum capital of 30 million yen, employment of at least one full-time employee, over three years of management experience or relevant academic background, and Japanese language proficiency are now mandatory. ✓　To obtain a Business Manager Visa as a manager, there are five requirements: A business office must be secured within Japan. The business must meet a certain scale (With a minimum capital of 30 million yen and at least one full-time employee) The ability to demonstrate the appropriateness, stability, and continuity of the business. At least three years of management experience or a relevant academic degree Japanese language proficiency ✓　Under the new system effective from October 16, 2025, verification of the business plan by a certified professional, such as a Small and Medium Enterprise Management Consultant, has also become mandatory. ✓　To establish a company in Japan, it is necessary to first register the company and set up the business at the Japanese location. After that, you can apply for a Business Manager Visa. ✓　As the system has become significantly more complex, it is now more important than ever to develop an optimal strategy tailored to your individual circumstances.

In this article, we will explain the process and points of caution for establishing a company in Japan, as well as the requirements for obtaining a Business Manager Visa and the documents needed for company registration.
By preparing the correct documents and understanding the process, you can smoothly proceed with the establishment of your company and the acquisition of a Business Manager Visa for your entry into Japan. Please read on to ensure a smooth company establishment.

1. What are the conditions for a foreigner to run a company in Japan?

It is possible for foreigners to establish a company in Japan, regardless of whether they live in Japan or abroad. Just like a Japanese person establishing a company, a foreigner can also establish a company by having the articles of incorporation certified by a notary, paying the capital contribution and applying for registration of incorporation.

However, in order for a foreigner to stay in Japan as a manager for medium- to long-term business activities, the following conditions must also be met.

• Holding a visa (residence status) such as “Business Manager,” “Permanent Resident,” or “Spouse or Child of a Japanese National.”
• If you do not have a visa (residence status) that allows you to become a business owner, you must prepare a capital of at least 30 million yen and employ at least one full-time staff member, possess Japanese language proficiency (such as JLPT N2 or higher), and have at least three years of professional experience or a relevant academic degree.
• Possessing a signature certificate or seal registration certificate.
• Having a bank account in Japan.

Conditions for each The following is an explanation of each of these conditions.

[Effective October 16, 2025] The requirements for the Business Manager visa have been significantly tightened.

As of October 16, 2025, the requirements for obtaining a Business Manager visa have been significantly tightened. This is not merely a change in financial thresholds—it marks a shift in Japan’s expectations for entrepreneurs from “quantity to quality.” The main changes are as follows:

• Increase in Capital Requirement
  (Previous) 5 million yen or more → (New system) 30 million yen or more
• Mandatory Employment of Full-Time Staff
  (Previous) Choice between meeting the capital requirement or employing staff → (New system) Must meet the capital requirement and employ at least one full-time employee
• New Requirement for Management Experience or Academic Background
  Applicants must have at least three years of management or administrative experience, or hold a master’s degree or higher in a related field
• Introduction of Japanese Language Proficiency Requirement
  Either the applicant or a full-time employee must possess Japanese language proficiency equivalent to JLPT N2 or higher
• Mandatory Verification of Business Plan by a Certified Expert
  The business plan must be verified by a qualified professional, such as a Small and Medium Enterprise Management Consultant, Certified Public Accountant, or Tax Accountant

Those who are considering starting a business in Japan or applying for a Business Manager visa will need to prepare based on the assumption that these new requirements must be met.

1-1. Visa (status of residence) such as business administration, permanent resident or spouse of a Japanese national.

Foreigners can establish a company in Japan regardless of whether they live in Japan or abroad.

However, in order to stay in Japan and act as a manager, a visa (status of residence *hereafter referred to as ‘visa’ for ease of understanding) is required to run a company. A short-stay visa, a family visa, a student visa or a student visa are required. A short-stay visa, family visa or student visa does not allow you to receive remuneration and act as a manager in Japan.

Differences between visa and residence status

A visa (visa) is like a letter of recommendation confirming the validity of a passport and indicating that the person has no problem entering the country. It is issued by a Japanese embassy or consulate abroad.

A status of residence, on the other hand, is a legal qualification that indicates the status and activities a foreigner can perform during his/her stay in Japan. It is based on the Immigration Control Act and is handled by the Immigration and Residence Management Agency.

However, as “status of residence” is generally referred to as “visa”, this article uses the term “visa” to refer to status of residence for convenience.

Visas that allow company management and visas that do not allow company management

Foreigners can establish a company in Japan, whether they live in or outside the country. However, in order to act as a business manager in Japan, a visa is required to run a company. Temporary visitor visas, family visas, college student visas, etc. do not enable a foreigner to operate as a business manager while earning remuneration.

Of the visa statuses listed in the table below, only the five visas on the left allow you to run a company in Japan.

Visa to run a company	Visas that do not allow company management
Japanese spouse, etc.	short stay
permanent resident	studying abroad (usu. at university level)
Spouses, etc. of permanent residents	dependent (e.g. in a family)
long-term resident	Technical, humanities and international services
Management and administration	Skills, etc.

If you are in Japan on a visa other than one of the five types of visa on the left, you can engage in activities in preparation for starting a business, but it is illegal to engage in activities other than those permitted under your status of residence if, after establishing a company, you are paid as an officer and assume the position of representative director or other officer to manage and control the company.

These visas are statuses that permit specified activities such as studying abroad, family stays or being employed by a company to work. Therefore, receiving executive remuneration and acting as a manager in Japan constitutes illegal employment.

Therefore, in order to act as a manager and manage a business in Japan, you must change your visa status to one that allows you to manage a company.

For example, even if you are in Japan on a technical, humanities or international business visa, if your main business activity is not management, you can manage a company within certain limits. However, if the business takes off and the main activity is management, the visa must be changed to a business management visa.

Sometimes a foreigner prepares to start a business after leaving a company, but if he/she leaves the company, there will be a period during which the purpose of the work visa activity is not fulfilled, so the visa must be changed to a business management visa as soon as possible.

A short-stay visa only allows preparation for starting a business

A foreigner can visit Japan only once within three months with a temporary visitor visa, although the visa is valid for a period of three months. If you have a multiple-entry visa with a longer validity period, you can visit Japan for a short period of time (generally 90 days) as many times as you like within the validity period of your multiple-entry visa.

However, the only activities that can be carried out with these short-stay visas are business negotiations, contracts, meetings, business contacts, advertising and after-sales service. With a short-stay visa, you can prepare to start a business in Japan and even establish a company. However, to receive executive remuneration and act as a manager in Japan, a business management visa is required. A temporary visitor visa does not permit working in Japan to earn money (work activities). If a foreigner establishes a company and acts as a manager without receiving remuneration as an officer, there is no problem, but if he/she receives remuneration as an officer, it is illegal work.

In order to actually work as a manager in Japan while receiving remuneration as an officer, it is necessary to obtain a business administration visa as soon as possible after setting up the company.

1-2.Obtaining a Business Manager visa now requires meeting the newly established and stringent requirements.

If you do not already hold a visa that allows you to operate a business in Japan, you will need to obtain a Business Manager visa. As of October 16, 2025, the requirements for obtaining this visa have been significantly tightened. What is especially important are the scale of the business and proof of the entrepreneur’s own capabilities.

Capital of at least 30 million yen and employment of at least one full-time employee

The previous system that allowed applicants to choose between having “capital of 5 million yen or more” or “two or more full-time employees” has been abolished.
Under the new rules, applicants must satisfy both conditions: having capital of at least 30 million yen and employing at least one full-time employee.
Full-time employees must be Japanese nationals, permanent residents, or equivalent status holders.

Securing independent business premises

In order to obtain a business administration visa, a company must establish an office in the name of the company with the actual substance of doing business in Japan.Under the new system, this requirement has become even stricter, and using a residence as both a home and a business office is, in principle, not permitted.

The entrepreneur’s own background or academic qualifications

It is now required to provide proof of at least three years of business management experience or a master’s degree or higher in a related field.

Japanese Language Proficiency

Either the applicant or one of the employed full-time staff members must possess Japanese language proficiency — specifically, certification at JLPT N2 level or higher, or a score of 400 points or above on the BJT Business Japanese Proficiency Test.
These requirements clearly indicate that under the new system, not only sufficient financial resources but also strong management capability to operate a stable business and communication skills in Japanese are strictly demanded.

1-3. Must possess a certificate of seal impression or a signature certificate

To do business in Japan, you need to establish a company and open a Japanese bank account. At each step, you will be required to provide a certificate of signature (signing) and a certificate of seal impression.

A certificate of seal or signature certificate is required when establishing a company

A certificate of seal impression is required when registering the incorporation of a company. If you do not have a certificate of seal impression, you can use a signature certificate issued by the local government office or notary public in your home country. A signature certificate is a document that shows that the signature on an application for registration is genuine. Foreigners residing in Japan can obtain a signature certificate from their embassy or consulate in Japan.

Seal certificates are used for various procedures, such as property lease contracts.

A seal certificate can be issued if the resident card is available and the resident card is registered. If you can register your residence card, you can register your seal and therefore be issued with a seal registration certificate.

In addition, a real estate lease contract is required to secure a place of business in Japan to operate the company. When signing the contract, the manager’s own seal registration certificate and identity documents such as a residence card or passport may be requested. As seals are often required for these various procedures, it is useful to have them registered.

1-4. Must have a bank account in Japan.

When setting up a company, a personal bank account is required to receive capital remittances from foreigners.

Personal account in a domestic or overseas branch of a Japanese bank or a domestic branch of a foreign bank is required.

Bank accounts must be prepared in a Japanese or overseas branch of a Japanese bank, or a personal account in a Japanese branch of a foreign bank. If you are currently or have been in Japan in the past and have a Japanese bank account, you can use that personal account.

Foreigners living abroad who do not have a bank account in Japan need a Japanese collaborator

If a foreigner residing abroad does not have a Japanese personal account, he/she cannot establish a company. Even if they come to Japan on a short-stay visa, Japanese banks will not accept to open a personal account for a foreigner who does not have a residence card.

In such cases, it is necessary to get help from a partner in Japan to become the promoter or director of the company when it is set up, and to use the personal bank account of the partner. Then, after completing the procedures related to the establishment of the company, the co-operator must resign from his/her position.

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2. What are the requirements for obtaining a Business Manager visa Japan?

To start and manage a business in Japan, a foreigner must obtain a visa status such as Spouse or Child of Japanese National, Permanent Resident, Spouse or Child of Permanent Resident, Long-Term Resident, or a Business Manager Visa.

To obtain a Business Manager visa under the new system effective from October 16, 2025, you must meet all of the following requirements.

2-1. Business Scale (Capital of at least 30 million yen and at least one full-time employee)

As a foundation for the business, it is mandatory to have capital or total investment of at least 30 million yen, and in addition, to employ at least one full-time staff member. Full-time employees must be Japanese nationals or foreign nationals holding a status of residence based on permanent or equivalent status.

The source and method of obtaining the 30 million yen in capital will be subject to examination.

For the Business Manager visa, the source of capital of 30 million yen or more will be subject to examination. Authorities will review how the funds were obtained, and capital that merely exists for appearance’s sake (“window dressing”) will not be accepted.

If the capital is provided from the foreign applicant’s personal savings, it must be demonstrated that the funds were legitimately accumulated through appropriate income sources. Acceptable proof may include tax returns, salary statements, and bank transaction records.

In cases where the funds are borrowed from relatives or acquaintances, it is necessary to provide documentation such as a loan agreement to clearly verify the source of the funds.

The method of transferring the funds will also be subject to examination.

If the funds originate from overseas, documentation proving that the money was legally transferred into Japan will be required. This includes remittance records and bank transaction certificates. Care should also be taken regarding any transfer fees or exchange rate fluctuations that may occur during the process. It is essential to retain clear evidence showing the transfer of at least 30 million yen.
Furthermore, if cash exceeding 1 million yen is brought into Japan, customs declaration is mandatory. The declaration form serves as proof that the funds brought in as capital were legally imported into Japan

2-2. A Dedicated Business Office Must Be Secured

A separate physical office explicitly designated as “for business use” in the lease agreement is required. In principle, a home office (shared with a residence) is not permitted. The office must be fully equipped and ready for business operations at any time.

Therefore, in order to establish a company, it is necessary to secure an office, store, or other business premises in advance.

Requirements for a Business Office

A business office must meet the following two fundamental requirements:

• Economic activities must be conducted under a single management system at a specific location — that is, within a clearly defined area.
• The production or provision of goods or services must be carried out continuously, using both personnel and equipment.

These definitions are based on the concept of a “business establishment” as set forth in the General Principles of the Japan Standard Industrial Classification established by the Ministry of Internal Affairs and Communications (MIC).

Virtual offices are not eligible

While many entrepreneurs consider using virtual offices to reduce initial fixed costs, such offices do not qualify for the Business Manager visa. This is because the visa requires an actual business location where operations are physically conducted in accordance with the above criteria.

Even when using a rental office or shared workspace, the use of common areas only is not permitted. An independent and clearly defined workspace dedicated to business activities is required. Merely partitioned spaces are not considered sufficient.

The lease agreement must be under the company’s name and for business use

The lease agreement must be concluded under the company’s name and must clearly specify that the premises are for business use (such as an office or retail space). Leases for residential purposes are not permitted. In addition, short-term rentals or movable facilities are not accepted, as the continuity of the business would be in question.

The business office must be equipped with basic facilities such as a telephone, fax machine, computer, and copier. When applying for a Business Manager visa, photographic evidence of these facilities is required.

The size of the office must be appropriate for the type of business and the number of employees. For businesses such as manufacturing, private tutoring, or used car export, additional spaces—such as storage areas, classrooms, or vehicle lots—must also be secured. If multiple employees are hired, sufficient workspace for each of them must be provided.

2-3. The appropriateness, stability, and continuity of the business can be demonstrated.

To demonstrate the stability and sustainability of the business, a well-substantiated and persuasive business plan is essential. Furthermore, under the new requirements, the business plan must be reviewed and certified by a qualified professional, such as a Small and Medium Enterprise Management Consultant, Certified Public Accountant, or Tax Accountant, and the certification must be submitted as part of the application.

The business plan must clearly describe the business prospects and financial projections in Japan, demonstrating the ability to operate a stable and sustainable business. If there are already potential clients, suppliers, or business partners within Japan, it is advisable to prepare contracts or agreements with them as supporting documentation.

2-4. Ability to Demonstrate Managerial Experience and Competence

To prove that the applicant is qualified as a business manager, it is necessary to provide evidence of at least three years of business management or administrative experience, or possession of a master’s degree or higher in a related field. The applicant must not merely be an investor but must personally play a central role in the operation of the business.

2-5. Possession of a Certain Level of Japanese Language Proficiency

For smooth business operations, it is now mandatory that either the applicant or one of the full-time employees possess Japanese language proficiency equivalent to JLPT N2 or higher.
Specifically, for those who are not Japanese nationals or special permanent residents, it is necessary to have an equivalent level of Japanese ability that meets one of the following criteria:

• Passing the Japanese-Language Proficiency Test (JLPT) at N2 level or higher
• Scoring 400 points or above on the BJT Business Japanese Proficiency Test
• Graduation from a Japanese university or other higher education institution
• Graduation from a Japanese high school after completing compulsory education in Japan

2-6. Engaged in the actual management or administration of the business.

Engaging in business management means that the business manager visa applicant themselves actually manages the company. Specifically, this involves being an executive officer such as the representative director or director, making important decisions, and executing business operations. Additionally, engaging in business administration refers to being a company manager such as a branch manager, factory manager, or department manager, and actively performing management duties.

3.Flow of Establishing a Company and Obtaining a Business Manager Visa for Foreign Nationals

The process of establishing a company aimed at obtaining a business manager visa proceeds as follows.

• Decide on the basic details of the company
• Create a company seal
• Secure an office or store in an individual’s name (lease agreement, etc.)
• Prepare and notarize the articles of incorporation
• Deposit the capital
• Apply for and complete company registration
• File a notification under the Foreign Exchange and Foreign Trade Act
• Change the lease name from individual to corporation
• Submit a notification of business commencement
• Prepare office/store equipment and fixtures
• Obtain necessary permits and licenses (if required)
• Apply for a business manager visa
• Register the foreign individual’s residence and seal
• Commence business activities (open a corporate bank account, enroll in social insurance)

If you aim to establish a company, manage the business, and obtain a business manager visa simultaneously, you need to follow company establishment procedures that meet the requirements for obtaining a business manager visa.

Here are the actions to take at each step:

3-1. Decide on the basic details of the company

Decide on the industry and business objectives, location, name (trade name), and founders of the company. Be aware that if there is a company with the same name at the same location, registration cannot be completed.

A company with the same name refers to one where the entire name, including the company type, is the same. For example, “A Co., Ltd.” and “Co., Ltd. A” or “A Co., Ltd.” and “A LLC” are considered different companies, so even if a company is already using the name “A,” you can still apply.

You can check whether there is a company with the same name at the same head office location using the “Trade Name Search” function of the Ministry of Justice’s “Online Application System for Commercial and Industrial Registration.” Make sure to check this before drafting the articles of incorporation.
Ministry of Justice | Online Application System for Commercial and Industrial Registration

3-2. Create the company seal

Prepare the company seal. Although there are no specific rules, it is common to create three types of seals: the representative director seal, the square seal, and the bank seal.

3-3. Secure an office or store in an individual’s name (lease agreement, etc.)

Once the basic details of the company are decided, the next step is to secure an office.

Select an appropriate business location and initially sign a lease agreement in an individual’s name. After the company is established, it is common to change the lease name from the individual to the company. When choosing an office, it is crucial to ensure that the location is suitable for corporate registration and residence status applications and that it meets the “business office requirements.”

Avoid virtual offices, address-only registrations, and mixed-use residential offices. If you proceed with a location that does not meet these requirements, you may need to relocate to another place after establishment, which can be costly and time-consuming. Therefore, it is important to carefully select the office from the beginning.

Although the lease agreement for the office is not directly necessary at the time of company establishment, to avoid future issues, inform the landlord and the real estate agency about the intention to change the lease name to the company in the future. Verify the contract details before proceeding with the establishment. Avoid verbal agreements for the lease and company establishment, as you may face complaints from the landlord later, leading to a need to relocate. Proper preparation and careful selection of the office will help ensure a smooth company establishment and operation.

3-4. Prepare and notarize the articles of incorporation

Prepare the articles of incorporation, which outline the rules of the company. After preparing the articles, they must be notarized at a notary public office within the same prefecture as the company’s head office. The following documents are required when applying for notarization:

• Three copies of the articles of incorporation
• A certificate of seal impression for each promoter
• The personal seal (jitsuin) of each promoter

The cost for notarizing the articles of incorporation, including the notary fee and revenue stamps, is approximately 100,000 yen. However, if the articles are prepared electronically by an organization such as a public corporation, credit union, or by a judicial scrivener or administrative scrivener, the stamp duty for specific documents is not required, reducing the cost to around 60,000 yen.

Foreign nationals residing abroad should prepare a signature certificate instead of a certificate of seal impression.

If the country where the foreign national resides does not have a seal registration system, they should prepare a signature certificate (affidavit) instead of a certificate of seal impression. The signature certificate (affidavit) can be used to complete the notarization process for the articles of incorporation.

If the foreign national cannot visit the notary public office in the head office location, they can have a judicial scrivener or administrative scrivener create the articles of incorporation on their behalf to proceed with the notarization process.

3-5. Deposit the capital