What procedures are required to start a business in Japan? What are the maintenance requirements for the 'Business Manager' visa?

Relocating to JapanJapan Business StartupBusiness Manager VisaVisa RequirementsStartup ProceduresForeigner Business in Japan
Created At: 8/11/2025Updated At: 8/17/2025
Answer (1)

Hello! I see you're interested in starting a business in Japan. Let's talk about it. This is indeed a significant decision, and understanding the procedures will give you peace of mind. I'll explain everything in plain language.

Starting a business in Japan mainly involves these steps:

Think of the whole process like "building blocks." You need to prepare each block (the various procedures) before you can assemble a complete "company" + "visa."

Step 1: Set a "Small Goal" (Define the Company's Basic Framework)

Before running any procedures, you need to figure out these key things, as all subsequent documents revolve around them:

  1. Company Name: Decide what your company will be called. Have a few backup options ready in case of duplication.
  2. Office Address: This is a hard requirement. You must rent a real office space in Japan; a virtual address only for mail reception is not acceptable. The Immigration Services Agency (ISA) will check your lease contract and may even conduct on-site inspections. This address will be your company's registered address.
  3. Business Activities: What kind of business will you run? Examples: "Restaurant Management," "IT Software Development," "Import/Export Trade." Be specific and clear, as this will be written into the company's "official record" (the Articles of Incorporation).
  4. Capital: How much money will you use to start the company? For applying for a Business Manager Visa, 5 million yen (approx. ¥250,000 RMB) is an unwritten "standard line." Why this amount? It demonstrates you have sufficient resources to launch and sustain the company in its initial stages. This money must be physically deposited into a Japanese bank account.
  5. Partners (Founders): Are you doing this alone, or are there partners? This determines whose names go into the Articles of Incorporation.

Pro Tip: If you don't know anyone in Japan, finding a reliable Administrative Scrivener (a legal expert who handles procedures) will save you a lot of hassle. They can manage many of the cumbersome documents for you.

Step 2: "Register" the Company (Incorporate the Company)

Once you've decided on the above, you can start registering the company.

  1. Draft the Articles of Incorporation (Teikan): This is the company's "constitution," specifying its name, address, business scope, capital, etc. After drafting, it needs notarization at a Notary Public Office.
  2. Inject Capital: Transfer the prepared 5 million yen capital into the Japanese bank account of a partner or yourself. (For foreigners without a visa yet, opening a personal account is very difficult; it's common to temporarily use a Japanese partner's or agent's account for capital verification).
  3. Submit Registration Application: Take the Articles of Incorporation, proof of capital deposit, and a stack of other documents to the local Legal Affairs Bureau to apply for registration. Once approved, your company is officially established! You'll receive a "Certificate of Registered Matters," which is the company's "business license."

Step 3: Handle Various "Opening Procedures"

After incorporation, you can't start operations immediately. You need to "report" to various government agencies.

  • Tax Office: Inform the tax office, "I've started a company and will be paying taxes."
  • Pension Office / Labor Standards Inspection Office: If your company hires employees (including yourself as the owner who must also enroll), you need to handle Social Insurance and Labor Insurance procedures.

Step 4: Apply for the "Boss Visa" (Business Manager Visa)

Everything is ready except the visa! Now you can take the company's complete set of documents to the Immigration Services Agency (ISA) to apply for the Business Manager Visa.

Core documents you need to submit include:

  • Business Plan: This is crucial! You need to explain in detail to the visa officer how your business will operate, how it will make a profit, and your development plans for the coming years. The more detailed and convincing it is, the higher your chances of success. You must convince the visa officer that your company is genuine, has prospects, and isn't just a shell company for obtaining a visa.
  • Company Registration Documents: The "official records" obtained in Step 2.
  • Office Lease Contract and Photos: Proof that you have a real business premises.
  • Proof of Capital Source: Proof that the 5 million yen was earned legally.
  • Personal Resume: Proof of your relevant management experience or industry background.

The entire process, if smooth, takes about 4-6 months.

Obtaining the Business Manager Visa is just the first step; maintaining it is key:

Many think getting the visa is the end goal, but the real test comes later. The visa is typically granted for 1 year initially and needs renewal upon expiry. The ISA will strictly review your company during renewal to see if you are a "qualified manager."

They mainly look at these points:

1. The Company's "Health": Must be genuinely operating with profit potential

  • Cannot be a shell company: The ISA will check if your company has normal business transactions, such as purchase contracts, sales invoices, and bank account transaction records. The office cannot be empty; it needs office equipment and must look like a properly operating business.
  • Financial statements must pass muster: The company needs annual financial reports. If the company shows serious consecutive losses, the ISA will deem it incapable of sustainable operation, making renewal very risky.
    • Losses in the first year are understandable: Significant startup costs in year one leading to some loss is normal. If your business plan provides a reasonable explanation and shows a trend towards future profitability, it's usually acceptable.
    • But cannot keep losing: If losses are substantial for two or three consecutive years, renewal is highly unlikely.

2. Your "Manager Status": Must be genuinely managing and have reasonable income

  • You must be in Japan: As the company operator, you must reside in Japan for more than half the year (generally recommended over 183 days) to prove you are personally managing the company.
  • Pay yourself a salary: As the company owner (director), you need to receive "director's remuneration" (salary) from the company. This salary cannot be too low; it must at least meet the cost of living in Japan (generally recommended at least ¥200,000 per month). You must also pay personal income tax and social insurance premiums on time. This proves you are not just a nominal owner but rely on the company to live in Japan.

3. The Company's "Civic Responsibility": Must comply with the law

  • Pay taxes on time: Corporate taxes, consumption tax, your personal income tax, and resident tax must all be paid fully and on time. Any tax issues are a "fatal flaw" for renewal.
  • Enroll in Social Insurance: If the company meets the criteria (e.g., employs staff), it must enroll employees (including the owner) in Employees' Pension Insurance (Kōsei Nenkin) and Health Insurance (Kenkō Hoken). This is a legal obligation and a key focus of ISA review.

To summarize the key points for maintaining the visa:

The company must genuinely operate, the accounts must look decent (at least not too bad), the owner must reside in Japan long-term and pay themselves a salary, and all due taxes and social insurance contributions must be paid without fail.

This whole process sounds a bit complex, but by taking it step by step and preparing your documents thoroughly, it's entirely manageable. Best of luck!

Created At: 08-11 12:45:29Updated At: 08-12 02:56:13