If a foreigner who is running a corporation overseas wants to expand their business into the Japanese market, there are three ways to do so: (1) set up a representative office, (2) set up a branch office in Japan, or (3) set up a subsidiary (or Japanese corporation). A representative office is used to conduct market research in Japan, and sales activities (activities that generate revenue) are prohibited.
In addition, if a foreigner wants to start a new business in Japan, they must set up a corporation and obtain a visa. The recently established “Start-Up Visa” can be applied for at designated administrative offices (see below), making the process relatively easy for foreigners who want to start a business in Japan.
Below is information necessary for foreigners to set up/start a company in Japan, including types of visas (4-month business manager visa, Start-Up Visa), what is needed to set up a company, types of corporations, and where to register the company.
Things you need to do to start a business in Japan (register a corporation)
1. Register your company address
When registering your company address, it is generally difficult to use a virtual office, rental office, or home address, so it is recommended that you register the address of an office with a solid rental contract. In addition, JETRO provides furnished offices, which can be used free of charge for 50 days if certain conditions are met.
2. Meet one of the following conditions
[a] The business is operated by two or more full-time employees residing in Japan (excluding those residing with a status of residence in the upper column of Appendix 1 of the Act) other than those engaged in its management or administration.
[b] The amount of capital or total investment is 5 million yen or more.
[c] The business is deemed to be of a scale equivalent to a or b.
From the Ministerial Ordinance prescribing the criteria for Article 7, Paragraph 1, Item 2 of the Immigration Control and Refugee Recognition Act.
For more details, please contact the following organizations.
・Immigration Bureau
Japanese embassies overseas
What visas are required for foreigners to start a business in Japan?
Foreigners need a visa to start a business in Japan. If you do not yet have a Japanese visa, you will need a “4-month business manager visa” or a “start-up visa” issued by some areas such as Tokyo and Fukuoka City.
If you already have another visa, you need to check in advance whether you can start a company with your current visa or whether you will need a new visa.
Even with a short-term 90-day visa, you can prepare for business as long as the activity is not profitable. For details, please check the Ministry of Foreign Affairs’ page.
4-month business manager visa and startup visa
1) How to obtain a 4-month business manager visa
The “4-month business manager visa” is a new visa established in April 2015. If you can prove that you are preparing to start a business in Japan and are approved, you can obtain this visa and start your business immediately after arriving in Japan. This visa is obtained before arriving in Japan, so you will need to submit the necessary documents to the Japanese Immigration Bureau from overseas before coming to Japan.
The “4-month business manager visa” is valid for 4 months as its name suggests, and allows you to do the following:
・Acquire a residence certificate (you need an address that can be registered)
・Open a bank account
・Register a corporation
You can use the 4 months of the visa’s validity to establish a company in Japan, and if permission is granted, you can extend it to a business manager visa that is valid for 1 year.
Monthly apartments that allow address registration
To obtain a residence certificate, you must be staying in a place where you can register your address at the government office. Address registration is not possible at hotels. The monthly apartments in Tokyo listed in this link have properties that allow address registration, and are recommended for short-term stays during the visa acquisition period. However, some monthly apartments do not allow address registration, so be sure to tell the real estate agent that you need to register your address when applying for or inquiring about a place.
Fully Furnished Monthly Apartments in Tokyo
Fully Furnished Monthly Apartments for Short-Term Rent in Central Tokyo
2) How to Obtain a Start-Up Visa
The Start-Up Visa is a visa that aims to increase the number of foreign entrepreneurs and to make the process for them smoother by relaxing regulations. It is issued in some areas approved by the government, such as Tokyo and Fukuoka City. It is valid for six months.
As of April 2023, it is implemented in Tokyo, Hokkaido, Osaka, Kobe, Aichi, Oita, Fukuoka, etc.
>> Contact for the “Startup Visa”
To obtain this visa, first submit the necessary documents, including a business plan, to one of the regional offices listed above. All documents must be written in Japanese. If the documents pass the screening, a letter of recommendation will be issued. Submit the letter of recommendation to the Immigration Bureau to apply for a visa, and if there are no problems, the visa will be issued.
As mentioned above, the validity period of this visa is six months, which is two months more than the four-month business management visa. During that time, you can thoroughly prepare to establish a company. If the applicant passes the examination, the period will be extended for another six months.
The following is a quote from the official Tokyo Metropolitan Government website.
If a foreigner wants to start a business in Japan, they need to obtain the “Business Manager” status of residence. To obtain this status of residence, they must meet certain requirements, such as opening an office before entering the country, employing at least two full-time employees, or investing at least 5 million yen in Japan.
For this reason, it is extremely difficult for a foreigner to start a business alone without a domestic partner.
Under the Tokyo Metropolitan Government’s special zone system, the Tokyo Metropolitan Government can grant a “Business Manager” status of residence for six months as an exception, by confirming the business plan, etc., before the Immigration Bureau (Immigration Bureau) examines the business plan at the time of entry.
Foreigners who plan to start a business can use these six months to carry out start-up preparation activities after entering the country.
In addition, we will provide unique support to foreigners by utilizing “Business Concierge Tokyo” so that they can meet the requirements and renew their status of residence six months later.
The startup visa is valid for six months and allows them to do the following:
・Acquire a residence certificate (requires a registerable address)
・Open a bank account
Register a corporation
If you currently hold another visa
If you already have a visa and are living in Japan, you can establish a company (start a business) while your visa is valid. You may then need to change your visa type. The procedure, whether or not you are required to change your visa, and what the impact will be after the change will all depend on your current visa, so we recommend consulting the Immigration Bureau or a specialist before establishing a company.
Types of corporations in Japan
There are four types of corporations in Japan: joint stock companies, limited liability companies, limited partnership companies, and limited partnership companies. Many companies choose either joint stock companies or limited liability companies. Limited partnership companies are a modified version of the “limited liability company,” and currently limited liability companies cannot be registered. If you have a corporation abroad, you can also establish a branch office in Japan.
Industries that require approval
You may need special approval to start a business.
Examples: food handling companies, travel agencies, temporary staffing agencies, hotels, liquor sales companies, finance, pharmaceuticals, etc.
For more details, please see the JETRO page below.
Representative Office, Branch Office and Subsidiary Company
Comparison on Types of Business Operation
Where can I set up a corporation and submit tax documents in Tokyo?
Tokyo Business Start-up One-Stop Center
At the Tokyo Business Start-up One-Stop Center, you can do everything you need to start a business in one go. You can also get free consultations and document checks from a small and medium-sized business consultant.
Application acceptance documents
・Certification of articles of incorporation
・Registration of incorporation
・Taxation (national tax, metropolitan tax)
・Immigration control
・Employment insurance
・Labor insurance
・Health insurance, welfare pension insurance
Tokyo Business Start-up One-Stop Center Office
Contact list
Akasaka Ark Mori Building
1-12-32 Akasaka, Minato-ku, Tokyo Ark Mori Building
7th floor, Japan External Trade Organization (JETRO) Headquarters
TEL: 03-3582-4934
Shibuya Satellite Center
1st floor, Shibuya Dogenzaka Tokyu Building, 1-10-8 Dogenzaka, Shibuya-ku, Tokyo
TEL: 03-5489-4630
Yurakucho Satellite Center
2nd floor, SusHi Tech Square, 3-8-3 Marunouchi, Chiyoda-ku, Tokyo
TEL: 03-4560-0634
Foreign Resident Support Center
Foreign Resident Support Center (FRESC -) in Yotsuya, Tokyo The following eight organizations are located on one floor at FRESC.
・Immigration Services Agency
・Japan External Trade Organization (JETRO)
・Tokyo Regional Immigration Bureau
・Visa Information, Ministry of Foreign Affairs
・Human Rights Protection Division, Tokyo Legal Affairs Bureau
・Special Consultation and Support Office for Foreigners, Tokyo Labor Bureau
・Japan Legal Support Center (Hou-Terasu)
・Tokyo Employment Service Center for Foreigners
FRESC
13F Yotsuya Tower, 1-6-1 Yotsuya, Shinjuku-ku, Tokyo
TEL: 0570-011000 / 03-5363-3013
Access: 1 minute walk from Yotsuya Station
http://www.moj.go.jp/isa/content/930005925.pdf
Should I invest in real estate under my personal name or a corporate name?
The following link explains (in English) whether foreigners should invest in real estate in Japan under their personal name or a corporate name, as well as the advantages and disadvantages of each.
>> Individual vs Corporate Investment Property Ownership
English sites that are useful for foreigners to set up a company or start a business in Japan
Laws and regulations regarding incorporation
How to Set Up Business in Japan by JETRO
Free furnished office space provided by JETRO. You can use it for free for 50 days if you meet the conditions.
JETRO Office Space for Free
Tokyo Employment Consultant
Startup support center
Tokyo Innovation Base
Start-Up Visa (Ministry of Foreign Affairs of Japan)
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