Published: August 5, 2025
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. Our goal is to explain how foreign nationals can establish a company in Japan and obtain the necessary legal status, such as the appropriate visa, 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. 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. We will discuss the reasons for these preferences in a future article.
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. The most relevant category is the Business Manager Visa. Without this visa, it is generally not possible to legally operate a company.
Unlike many other registrations in Japan, the approval of a Business Manager Visa is at the discretion of the immigration authority. This means that even if all formal requirements are met, approval is not guaranteed. Our role as professionals is to prepare the necessary documentation, organize it into a coherent application, and present a convincing case to the authorities. Careful preparation and expert guidance are essential to maximize the chance of success.
3. Obtaining Business Permits When Required
Depending on the industry, additional permits or licenses may be required.
For example:
- 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, approval is usually granted.
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.
For instance:
- 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.
- 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.
- 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, forcing them to abandon their plans.
Overcoming these practical challenges is often more difficult than the formal 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 these points. By combining legal accuracy with practical insights, we aim to guide foreign entrepreneurs through the complexities of doing business in Japan.
Quiz
To our readers, here is a quiz on foreign entrepreneurship and Japanese visa categories.
Question
| In certain cases, foreign entrepreneurs can operate a business and serve as company managers even without a Business Manager Visa. Which of the following visa categories allows this? 1. Entertainer Visa 2. Skilled Worker Visa 3. Spouse or Child of Japanese National Visa |
Additional Information
- Entertainer Visa
This visa is for people coming to Japan to participate in entertainment activities. Typical examples include musicians, performers, or professional athletes. - Skilled Worker Visa
This visa is granted to foreign nationals who have specialized technical skills, such as chefs of international cuisine or skilled artisans. - Spouse or Child of Japanese National Visa
This visa is available to individuals who are married to, or are the child of, a Japanese citizen.
You can find the correct answer and a full explanation in our paid article, available for just 100 yen.
As a special offer for first-time readers, this quiz article is priced at only 100 yen.
In addition to the quiz, we have also prepared a FAQ with answers to 10 of the most common questions we receive from clients. We believe that reading our FAQ will help you see that working with Japanese legal professionals does not have to be strict or intimidating.
* Purchase access here. After payment, you can view the paid article.
If you have any questions, please feel free to contact us using our inquiry form.
*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.
*Note 3
We offer paid articles in four pricing categories:
A. Detailed explanations of general procedures: 1,000 yen
B. Practical, client-oriented guidance and case studies: 3,000 yen
C. Real examples with actual documents from our files: 5,000 yen
S. Special introductory content at a discounted price: 500 yen
