What status is needed for opening a business in Japan? Corporate registration guide

If you have Japanese nationality, there are no conditions imposed when establishing a company in Japan. Additionally, foreign nationals can establish a company in Japan regardless of their residence status.

The key points of this article are as follows:

This article summarizes the residence statuses required for foreigners to establish a company. It also introduces the conditions for obtaining a Business Manager Visa and the process of company establishment.

By knowing the necessary qualifications and costs in advance, you can ensure a smooth company establishment. Please take a look.

1.Foreigners without a visa can also establish a company.

It is possible to establish a company in Japan regardless of nationality or residence status. Both Japanese nationals and foreign nationals, including those staying in Japan on a Student Visa or an Engineer/Specialist in Humanities/International Services Visa, can establish a company.

Moreover, business activities are possible without establishing a company. This article introduces the procedures and costs for foreigners to establish a company, but if it seems too difficult, consider starting as a sole proprietorship.

2.Residence status required for foreigners to become business owners

Foreign nationals can establish a company, but to be involved as a business owner in the established company, the following residence statuses are required:

• Permanent Resident, Long-Term Resident, Spouse or Child of Japanese National
• Business Manager Visa

Let’s take a look at each residence status.

2-1. Permanent Resident, Long-Term Resident, Spouse or Child of Japanese National, etc.

If you fall into any of the following categories, you can operate as a business owner regardless of nationality:

• Permanent Resident
• Long-Term Resident
• Spouse or Child of Japanese National
• Spouse or Child of Permanent Resident

2-2. Business Manager Visa

Even if you do not fall into any of the categories of Permanent Resident, Long-Term Resident, Spouse or Child of Japanese National, or Spouse or Child of Permanent Resident, you can still operate as a business owner if you obtain a “Business Manager Visa.” If your current residence status is other than “Business Manager Visa,” you will need to apply for the Business Manager Visa at the Immigration Bureau and change your residence status.

2-2-1. Conditions for Obtaining a Business Manager Visa

To apply for a Business Manager Visa, you need to demonstrate that you have the ability to work as a business manager and that you have a business office where you will be involved as a manager. Make sure to meet the following conditions before applying for the Business Manager Visa:

• There is a business office.
• The capital or total amount of investment is at least 5 million yen, or you employ at least two full-time employees.

Additionally, to demonstrate the stability and continuity of the business, as well as the management ability of the applicant, you will be required to submit documents such as a business plan, and proof of the applicant’s career history, compensation, and position.

[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.

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3.Procedure for Foreigners to Establish a Company

Foreign nationals may not be able to work as business owners depending on their residence status. When establishing a company, it is necessary to proceed with the procedures according to the residence status of the business owner.

Foreign nationals who do not fall into the categories of Permanent Resident, Long-Term Resident, Spouse or Child of Japanese National, or Spouse or Child of Permanent Resident, and who have a residence status other than Business Manager Visa, should proceed with company establishment as follows:

1. Decide the basic details of the company
2. Create the Articles of Incorporation
3. Deposit the capital
4. Apply for corporate registration
5. Obtain a Business Manager Visa

We will explain what needs to be done and points to be noted at each stage.

3-1. Decide the Basic Details of the Company

First, decide on the basic details of the company. At a minimum, the following items need to be determined before establishing the company:

• Company name (trade name)
• Type of company
• Founders and their respective investment amounts
• Amount of capital
• Headquarters location
• Composition of officers
• Business activities and objectives
• Fiscal year

The type of company refers to whether it will be a corporation (Kabushiki Kaisha) or a limited liability company (Godo Kaisha). The type of company chosen will affect the establishment procedures and decision-making processes.

After deciding on all of the above, you should create the company seals. At a minimum, you will need a representative seal, a square seal, and a bank seal. The representative seal is also used during registration, so it is advisable to create it early.

3-2. Create the Articles of Incorporation

After deciding on the basic details, create the Articles of Incorporation. The Articles of Incorporation are documents that summarize the company’s regulations and basic information, and they are also required for corporate registration.
The Articles of Incorporation must be submitted to the notary office and certified by a notary public. Since the certification process can take about a week, if you have a specific date in mind for establishing the company, plan accordingly and proceed with the process in a timely manner.

3-3. Deposit the Capital

The capital must be deposited into a bank account designated by the founders. It is generally done after the Articles of Incorporation are certified, but it can also be done before certification if it can be proven that the deposit is for the purpose of establishing the company.

The financial institution used for the capital deposit must be regulated by Japan’s Banking Act. If the founder’s bank account is not regulated under Japan’s Banking Act, the founder must either open a new account with a Japanese financial institution or enlist a collaborator who has an account with a Japanese financial institution to become a director or founder and deposit the capital into that collaborator’s account.

Additionally, if the founder’s bank account is an overseas branch of a financial institution regulated by Japan’s Banking Act, it can be used for the capital deposit without any issue. However, since the funds in the account will be in a foreign currency, proof of the exchange rate to Japanese yen will be required.

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3-4. Apply for Corporate Registration

Apply for corporate registration at the Legal Affairs Bureau. The application date will be the establishment date of the company, so if you have a specific date in mind, adjust your application date accordingly. Once the corporate registration process is complete, you will be able to obtain a Certificate of Registered Matters.

Additionally, you will need to pay the following registration and license tax for corporate registration:

Reference: National Tax Agency “No. 7191 Table of Registration and License Tax Amounts”

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3-5. Obtain a Business Manager Visa

If the company’s directors or other executives do not have Japanese nationality and do not fall into the categories of Permanent Resident, Long-Term Resident, Spouse or Child of Japanese National, or Spouse or Child of Permanent Resident, they need to obtain a Business Manager Visa.

If you have a different residence status, you must visit the Immigration Bureau to apply for a change of status to a Business Manager Visa. During the application process, you may need to submit the following documents, so it is advisable to prepare them in advance:

• A copy of the document specifying the officer’s remuneration
• Documents that show the responsibilities and position of the applicant
• Certificate of registered matters of the business office
• Documents that show the history, organization, and business activities of the company
• Resident certificates and wage payment documents for full-time employees of the business office
• Documents proving the existence of the business office facility (such as a real estate registry or lease agreement)
• Business plan

4.Costs Required for Foreigners to Establish a Company

When a foreigner establishes a company, the following costs may be required:

• Capital
• Corporate registration fees
• Residence status acquisition fees

Let’s take a closer look at the approximate amounts required for each.

4-1. Capital

If you have Japanese nationality, or if you are a foreign national who is a Permanent Resident, Long-Term Resident, Spouse or Child of Japanese National, or Spouse or Child of Permanent Resident, you can establish a company with a capital of at least 1 yen. Similarly, individuals with a Business Manager Visa can also establish a company with a capital of at least 1 yen.

However, if you are planning to obtain a Business Manager Visa, you will need to prepare a capital of at least 5 million yen. Alternatively, employing at least two full-time employees can also meet this requirement.

4-2. Corporate Registration Fees

When registering a corporation, a registration and license tax is required. The amount of tax depends on the type of company and the amount of capital, ranging from 60,000 yen to at least 150,000 yen.

Additionally, if you hire a professional such as a judicial scrivener to handle the registration process, you will need to pay their fees as well. Depending on the situation, you should budget around 100,000 to 150,000 yen for these professional fees.

4-3. Residence Status Acquisition Fees

There is no direct cost for obtaining a Business Manager Visa itself. However, if you hire a professional to assist with document preparation and the application process, you can expect to pay a fee of around 150,000 to 200,000 yen.

5.Summary

This article has explained the essential points that foreigners should know when establishing a company in Japan. To summarize:

You can establish a company in Japan without having a Business Manager Visa or other specific residence status, but certain residence statuses are required to become a business owner. If you do not have a permanent residency or other specified status, you should apply for a Business Manager Visa.

The application for a Business Manager Visa and the process of establishing a company require various documents and procedures. If you find it difficult, seeking assistance from a professional is a viable option.