Vol. 1: Starting a Business in Japan - Int'l BUSINESS TAILOR Co., Ltd.

Published: August 5, 2025
Last updated: October 20, 2025

Note: This article reflects the revised requirements for the “Business Manager” status of residence that took effect on 16 October 2025, including the new minimum capital requirement of JPY 30,000,000 and the obligation to employ at least one full-time staff member in Japan (Immigration Services Agency of Japan, “在留資格『経営・管理』に係る上陸基準省令等の改正について”).

If you are interested in starting a business in Japan but are unsure where to begin, you are not alone. Every year, we receive inquiries from entrepreneurs around the world about how to set up a business in Japan. Some may dream of opening a restaurant, while others plan to establish a technology startup. Although their backgrounds and industries differ, the questions they ask are often the same:

What steps do I need to take to set up a company and obtain the right visa in Japan?

This is one of the most common questions we hear.

Since 2013, we have supported international clients for more than a decade as they launch their businesses in Japan. Through this work, we have learned that foreign entrepreneurs face many legal and practical challenges. In fact, the process from initial preparation to final approval often takes more than six months. Because it is difficult to explain everything in a single consultation—and because each client’s situation is unique—we decided to create a clear and practical guide that anyone can use as a starting point. This is the purpose of this series.

In the articles that follow, we provide an easy-to-follow roadmap based on real-world cases. In particular, we focus on the current “JPY 30,000,000 investment model” that reflects the latest criteria for the Business Manager Visa, and explain how foreign nationals can establish a company in Japan and obtain the necessary legal status to operate their business successfully.

Purpose and Structure of This Series

This series is designed to help foreign nationals understand the actual process of starting a business in Japan under the revised rules for the Business Manager status of residence. In particular, we explain the standard pattern where an entrepreneur invests at least JPY 30,000,000 and builds a company that meets the current requirements set by the Immigration Services Agency of Japan.

We focus on three key points.

First, we share not only the official rules but also practical insights based on what actually happens in the Japanese business environment. Second, we provide specialized and realistic knowledge that cannot be found through general internet searches or current AI tools. Third, we highlight common mistakes and risks faced by foreign entrepreneurs, so you can avoid these pitfalls before they occur.

Starting a business as a non-Japanese resident is not easy. However, for those with sufficient funding and a well-prepared business plan, Japan does present real opportunities. Through this series, we aim to encourage entrepreneurs who may have thought it was impossible to move forward with greater confidence.

What Does It Take to Launch a Business in Japan?

Broadly speaking, there are three main steps.

1. Establishing a Company or Registering as a Sole Proprietor

The first step is to create a legal entity for your business. This usually means either incorporating a company or registering as a sole proprietor. In practice, most foreign entrepreneurs choose incorporation, as it is more practical from both a legal and business perspective.

The two most common corporate forms are Kabushiki Kaisha (KK, similar to a joint-stock company) and Godo Kaisha (GK, similar to a limited liability company). In our experience, many European and North American clients prefer the GK structure, while many Chinese clients choose the KK structure. The reasons for these preferences include brand perception, governance structure, and future investment plans. We will discuss these points in more detail in a future article.

For entrepreneurs who plan to apply for a Business Manager Visa, it is particularly important to design the company structure and capital composition from the very beginning with immigration requirements in mind. This is because the paid-in capital or total investment amount, as well as the way it is actually used in the business, will be closely examined by the immigration authority.

2. Obtaining the Appropriate Visa or Status of Residence

To legally manage a business in Japan, a foreign national must obtain the correct status of residence, commonly referred to as a visa. For most entrepreneurs, the most relevant category is the “Business Manager” status of residence (Business Manager Visa). Without this visa, it is generally not possible to legally operate and manage a company on a long-term basis.

As of 16 October 2025, the basic model for a new Business Manager Visa application has changed significantly. Under the amended ministerial ordinance, the immigration authority now expects that:

your company has paid-in capital or total investment of at least JPY 30,000,000; and
your company employs at least one full-time staff member who is a Japanese national or a long-term resident with a stable status in Japan.

If the business entity is a corporation, the relevant amount is the paid-in capital of a company limited by shares (for a KK) or the total amount of contributions for other types of corporations such as a GK. If the business entity is a sole proprietorship, the total amount of necessary business investment—such as office rent, one year of staff salary, and equipment costs—must reach at least JPY 30,000,000 in total and be actually committed to the business.

In addition, the revised rules require that:

either the applicant or the full-time staff member has sufficient Japanese-language ability to handle daily business, contracts, and communication with authorities. As a guideline, this corresponds to B2 level in the “Japanese Language Education Reference Framework,” typically proven by JLPT N2, BJT score of 400 or higher, or equivalent education or long-term residence in Japan;
the applicant has an appropriate academic or professional background, such as a master’s degree or higher in a relevant field, or at least three years of experience in business management or in the field of the planned business; and
the business plan submitted to Immigration is reviewed and evaluated by a qualified professional with expertise in business management, such as a certified SME management consultant, certified public accountant, or tax accountant. Their written opinion must be attached to the application file.

Unlike many other registrations in Japan, the approval of a Business Manager Visa is still at the discretion of the immigration authority. This means that even if all formal requirements are met, approval is not automatically guaranteed. Our role as professionals is to:

confirm that your business meets the new numerical requirements (capital, employment, language, and experience);
prepare and organize all supporting documents and evidence in a way that is consistent and transparent; and
present a coherent, convincing application that clearly explains why your business is genuine, sustainable, and beneficial to Japan.

Careful preparation and expert guidance are now even more essential to maximize the chance of success under the revised system.

3. Obtaining Business Permits When Required

Depending on the industry, additional permits or licenses may be required.

Opening a restaurant requires a Restaurant Business License
Operating a hotel or guesthouse requires a Hotel Business License
Running a travel agency requires a Travel Agency License

These approvals are generally granted if objective conditions are met. However, they often involve additional requirements such as hiring qualified personnel or installing specialized facilities. While demanding, these procedures are less discretionary than the visa process: as long as all criteria are satisfied and the documentation is complete, approval is usually granted.

In practice, it is often more efficient to plan the timeline so that company incorporation, office preparation, and key license applications are coordinated with the schedule for the Business Manager Visa application. This reduces the risk of paying rent or salaries for many months before the visa decision is made.

In Practice, Additional Barriers Exist

The three steps above are only the outline of the process. In reality, foreign entrepreneurs in Japan often face a range of hidden obstacles that are not obvious from reading the law or official guidelines.

An office property must be secured before company registration. This is separate from a residential address, and finding a suitable office is often the biggest challenge for newcomers. Landlords may be unfamiliar with foreign entrepreneurs and may require a detailed explanation of your business and visa plan.
A corporate bank account must be opened and the initial capital deposited. Without a track record in Japan, this can be very difficult for foreigners, and the review by banks has become stricter in recent years.
Most applications and contracts require Japanese-language communication, and the language barrier can create serious problems. In some cases, clients proceeded with agreements without giving our advice sufficient weight, and later discovered that they could not obtain landlord approval or that certain contract terms were unacceptable for immigration purposes, forcing them to abandon or redesign their plans.
Under the revised rules, you must also recruit at least one full-time staff member with a stable status in Japan. This means that, even before visa approval, you need a realistic plan for salary, social insurance, and long-term employment, and you must be able to prove that the position is genuine and necessary for the business.
Either you or your staff must be able to communicate in Japanese at roughly B2 / JLPT N2 level, and you must objectively prove this through test results, diplomas, or similar evidence. For many foreign entrepreneurs who previously relied on English only, this is a significant change.
Your business plan must be evaluated by a qualified professional, and their written confirmation must state that your plan is concrete, reasonable, and feasible. Finding the right professional and aligning their evaluation with your actual strategy requires both time and coordination.

Overcoming these practical challenges is often more difficult than satisfying the formal legal requirements. Successfully navigating them is the true value of professional support for foreign entrepreneurs in Japan.

Looking Ahead

In this series, we will provide detailed explanations and real case studies to illustrate how the new JPY 30,000,000 framework works in practice. We will look at examples from different industries—such as restaurants, IT startups, tourism-related businesses, and professional services—and examine how they structured their capital, office, staffing, and documentation to meet the revised criteria.

By combining legal accuracy with practical insights, we aim to guide foreign entrepreneurs through the complexities of doing business in Japan under the new rules. Our goal is to help you understand not only “what the law says” but also “how it is actually applied” and “what kind of preparation is realistically necessary” before you invest a significant amount of money and time.

If you are considering a JPY 30,000,000 investment in Japan or are already preparing documents for the Business Manager Visa, and would like a professional review of your plan before taking action, please feel free to contact us using our inquiry form.

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Note 1: “Status of residence” and “visa” are technically different under Japanese law. However, since most foreigners use the term “visa” to mean “status of residence in Japan,” we use “Visa” throughout this series for readability and convenience.

Note 2: Whenever we mention “Immigration” in these articles, we are referring to the Immigration Services Agency of Japan.

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