— Business Guide

How to Set Up a Company in Japan as a Foreigner — 2025 Updated Guide

“I want to start a company in Japan. Where do I begin?”

I hear this regularly. And my first message is always the same:

Important: Japan’s Business Manager visa requirements were drastically tightened in October 2025. Most English-language guides online are now outdated. This guide reflects the current rules.

(Source: Immigration Services Agency of Japan — https://www.moj.go.jp/isa/applications/resources/10_00237.html )

The good news: incorporation itself is straightforward

There are no nationality restrictions. Anyone can establish a company in Japan. A KK (stock corporation) can technically be set up with just 1 yen in capital.

The real challenge is obtaining the visa to actually run your business in Japan.

Business Manager Visa — Major Changes (October 2025)

Change 1: Capital requirement raised to ¥30 million

Old rule: ¥5 million in capital, OR 2 full-time employees New rule: Total capital investment of ¥30 million or more

A sixfold increase, designed to ensure business viability and substance.

Change 2: Mandatory full-time employee

Old rule: No employees required if capital was ¥5M+ New rule: At least 1 full-time employee is required regardless of capital

Eligible employees are limited to: Japanese nationals, special permanent residents, permanent residents, spouses of Japanese nationals, spouses of permanent residents, and long-term residents. Foreign workers on standard work visas do not qualify.

Change 3: Applicant qualifications now required

Old rule: No specific qualifications needed for business owners New rule: Applicants must meet one of the following:

  • 3+ years of business management experience
  • A master’s, doctoral, or professional degree in management
  • A master’s, doctoral, or professional degree in the relevant business field

Change 4: Professional verification of business plan

Old rule: Business plan required but no third-party review needed New rule: Business plan must be reviewed and confirmed by a certified professional (certified management consultant, CPA, or tax accountant)

Change 5: Japanese language requirements

Full-time employees must demonstrate Japanese proficiency at JLPT N2 level or equivalent.

Transitional measures

If you already hold a Business Manager visa, there is a 3-year grace period (until October 2028) during which renewal applications will be assessed case by case, even if you don’t fully meet the new requirements yet.

(Source: Immigration Services Agency — Business Manager visa page: https://www.moj.go.jp/isa/applications/status/businessmanager.html )

Company types

KK (Kabushiki Kaisha / Stock Corporation). Most trusted. Setup cost: ~¥200,000-250,000. Higher credibility with banks and partners.

GK (Godo Kaisha / LLC). Cheaper: ~¥60,000-100,000. Apple Japan and Amazon Japan are both GK. Common for foreign subsidiaries.

The incorporation process

  1. Draft Articles of Incorporation — company purpose, name, address, capital, directors
  2. Notarize — required for KK only, at a notary office
  3. Deposit capital — into founder’s personal account (corporate account doesn’t exist yet)
  4. File for registration — at the Legal Affairs Bureau. Filing date = establishment date. Takes 1-2 weeks.
  5. Tax filings — notify tax office, prefectural tax office, municipal office
  6. Social insurance — mandatory even for a one-person company

(Source: Ministry of Justice — commercial registration: https://www.moj.go.jp/MINJI/minji06_00115.html ) (Source: National Tax Agency — corporate notification: https://www.nta.go.jp/taxes/tetsuzuki/shinsei/annai/hojin/annai/01.htm )

The real wall: corporate bank accounts

This is the single biggest practical hurdle.

Japanese banks are extremely cautious with foreign-owned companies. Major banks (MUFG, SMBC, Mizuho) will likely reject your application.

Realistic options:

  • Online banks (GMO Aozora Net Bank, SBI Sumishin Net Bank)
  • Regional banks / credit unions (local introductions help significantly)
  • Japan Post Bank (easier approval, but with limitations)

Key insight: Bank account applications go much smoother with a referral from a tax accountant or administrative scrivener. Cold applications rarely succeed.

What no guide tells you

Language. Every government office operates in Japanese only. Forms are Japanese. One wrong character and your filing stalls.

Business culture. Japanese business runs on introductions. Cold outreach almost never works. A trusted local contact changes everything.

Speed. What takes a week elsewhere takes 1-2 months in Japan. This is normal, not a sign of problems.

Unspoken rules. How you exchange business cards, write emails, behave in meetings — these invisible protocols matter more than you’d think.

What the 2025 reform means practically

Before October 2025, a motivated foreigner could set up a one-person company with ¥5M and get a visa relatively straightforwardly.

Now, you need ¥30M in capital, at least one qualified employee, a professionally verified business plan, and relevant personal qualifications.

The bar is significantly higher. But with proper preparation and expert support, it’s absolutely achievable. As of mid-2025, approximately 44,760 foreign nationals hold Business Manager visas and run businesses in Japan.

Having a Japan-side partner changes everything

Let me be direct.

After the 2025 reform, navigating Japan’s company setup and visa process alone is significantly harder than before.

Professional business plan verification, hiring qualified employees, opening bank accounts, finding a tax accountant — every step requires local knowledge and connections.

That’s exactly what Japan Gateway provides.

→ Japan Gateway → Contact us → 日本語版はこちら

※The information in this article is based on the revised regulations effective October 2025. Immigration rules and administrative practices are subject to change. For the most current requirements, please check the Immigration Services Agency of Japan website or feel free to contact us for a consultation.

Official sources

#company setup #foreigner #Japan #Japan Gateway #visa
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