How to Set Up a Company in Japan as a Foreigner: Requirements and Process

What is the basic process for a foreigner to set up a company in Japan? As covered previously, Japan’s Business Manager Visa requires the applicant to run a business through a company in Japan. This article shares the requirements, process and points to watch when setting up a sole proprietorship or company in Japan, so that prospective applicants can prepare in advance.

Step 1: Decide the Content of the Japanese Company

This step covers several items.

First, decide the type of company. A Japanese business can be structured as a “sole proprietorship” (個人事業主) or as a “corporation” (法人). A corporation can, in turn, be one of five types:

• Kabushiki Kaisha (株式会社) — similar to a joint-stock or limited company
• Yūgen Kaisha (有限会社) — limited company
• Gōdō Kaisha (合同会社) — a limited liability partnership-style company
• Gōmei Kaisha (合名会社) — a company whose investing members bear unlimited liability
• Gōshi Kaisha (合資会社) — a company whose investing members bear either limited or unlimited liability

Note that a sole proprietorship does not qualify for a Business Manager Visa application, and tax obligations increase once turnover exceeds a certain threshold. For Business Manager Visa applicants, we recommend incorporating as a Kabushiki Kaisha (株式会社).

Setting the Company Name, Scope of Business, and Articles of Incorporation (Teikan)

A company name may use Japanese kanji, English letters, hiragana, katakana, Arabic numerals, and certain symbols, and “Kabushiki Kaisha” may be placed either before or after the company name. We recommend checking a patent/trademark information database first to confirm the name you want isn’t already registered.

You will also need to state the business activities the company will engage in, such as food service or import/export trade. Japanese companies face no cap on the number of business lines they may register, so it’s worth listing several intended business activities from the start.

Drawing up the articles of incorporation is one of the mandatory steps in setting up a company; the relevant government authority reviews the articles of incorporation in deciding whether to grant approval and registration.

Step 2: Set Up the Japanese Company’s Address, Shareholders, and Representative Director

Before finalizing the articles of incorporation, you need to settle on a company address. As long as the address is within Japan, you can use your own residence, a rented office, a serviced office (rental office), or a co-working space.

Note, however, that a company that will need to apply for a visa is required to have “independent space” (個室) for its office, so applicants typically rent an office, or use a private room within a serviced office.

A company can have a single shareholder, but it needs a Japan-based Japanese representative to help complete the company’s incorporation within Japan.

Step 3: Inject the Capital

Business Manager Visa applications require capital of at least JPY 30 million (effective October 16, 2025) AND at least 1 full-time employee — both conditions must be met; the previous JPY 5 million / 2-employee alternative no longer applies to new applications (existing visa holders have a transitional arrangement to October 16, 2028). The applicant needs to transfer the company’s starting capital from overseas into the corporation’s Japanese bank account, or into the account of a co-founder.

Step 4: Prepare the Company’s Registration Within Japan

Prepare the company’s commercial registration. The documents required for commercial registration are:

1. Application for registration (登記申請書)
2. Attachment listing the registration particulars (登記事項などを記載した別紙)
3. Seal registration form (印鑑届書)
4. Articles of incorporation (定款)
5. Incorporators’ resolution (発起人の決定書)
6. Letter of acceptance of appointment (就任承諾書)
7. Selection document (選定書)
8. Representative director’s letter of acceptance of appointment at incorporation (設立時代表取締役の就任承諾書)
9. Seal registration certificate (印鑑証明書)
10. Identity verification document (本人確認証明書)
11. Certificate proving payment of capital contribution (出資の払込みを証する証明書)
12. Certificate regarding the recorded amount of capital (資本金の額の計上に関する証明書)

Because the documents needed to set up a Japanese company can be complex, and requirements vary by industry, we recommend engaging a professional gyoseishoshi (administrative scrivener) for assistance; fees generally run around JPY 250,000 to 300,000 (including the incorporation registration fee).

Step 5: Prepare for Future Operations

This includes filing with the relevant local tax office, and preparing the company accounts needed for taxes, social and labor insurance, and pension contributions once the business is operating.

Step 6: Open the Japanese Company’s Bank Account

In principle, a corporate bank account can only be opened at the branch nearest the company’s registered address, and only the company’s founder may go in person to open it. Requirements vary by bank, but generally include a full certificate of company registration (company register transcript), the company seal, the bank seal, the notice of incorporation, the representative’s seal, and company-related materials (a company brochure or website).

Once the bank account is open, the company can generally begin operating in Japan. If a Business Manager Visa application is in progress at the same time, however, operations can only begin once the visa has been approved.

Related reading: guidance on Japan’s Business Manager Visa requirements and process, frequently asked questions on Japan’s Highly Skilled Professional visa, and the documents needed to register a company in Japan.

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