Starting a business in Japan as a foreigner is entirely possible — 100% foreign ownership is routine, and no citizenship or residency is required to incorporate. But the rules changed significantly in October 2025, when Japan overhauled the Business Manager visa: the capital threshold jumped from ¥5 million to ¥30 million, and new language and staffing requirements were added. Much of what you’ll read elsewhere online is now outdated.
This guide walks through the current (2026) reality: who needs which visa, the incorporation steps and costs, and the practical decisions — from resident directors to bank accounts — that determine how smooth your launch is.
First, Separate Two Questions
Most confusion collapses once you split the problem:
- Can I own a Japanese company? Yes — any nationality, any residence. A foreign founder can incorporate a KK or GK from abroad and own 100% of it.
- Can I live in Japan to run it? That’s an immigration question — and this is where the 2025 reforms bite.
If you don’t need to live in Japan (e-commerce run remotely, a company managed by a local director), you can skip the visa section entirely.
The Business Manager Visa After October 2025
The amended ordinance took effect on October 16, 2025 and raised the bar substantially:
| Requirement | Before | Now (from Oct 2025) |
|---|---|---|
| Capital (or equivalent) | ¥5 million | ¥30 million |
| Staffing | Capital OR 2 employees | At least one full-time employee residing in Japan (Japanese national, PR, special PR or family-status resident) |
| Japanese language | None | Applicant or a full-time employee at JLPT N2 / CEFR B2 or higher |
| Experience | Not formalized | Management experience expected; business plan scrutiny increased |
| Office | Physical office required | Physical office still required (virtual offices don’t qualify) |
Existing visa holders renew under transitional, more flexible standards until October 2028, after which full compliance is required.
What this means in practice: the casual “¥5 million and a serviced office” startup route is gone. Realistic paths in 2026:
- Fund it properly — ¥30 million in capital plus a hire, for founders committed to being on the ground.
- Enter on a different status — spouse visa, Permanent Resident, Highly Skilled Professional or student-to-work transitions carry no such requirements for running a company.
- Run it remotely — own the company from abroad with a resident director or manager handling local operations.
- Start as an employee — some founders enter via an Engineer/Specialist visa at their own or another company and build toward the manager visa later.
Incorporation: The Practical Steps
- Choose the entity — GK (合同会社) for speed and cost, KK (株式会社) for prestige with enterprises and banks. Full comparison in Doing Business in Japan.
- Prepare documents — articles of incorporation, registered address, director details; founders abroad need notarized/apostilled signature certificates in place of Japanese personal seals.
- Deposit capital — into a personal Japanese account of an incorporator (or via a resident cooperator’s account when founding from abroad; a common practical hurdle).
- Register at the Legal Affairs Bureau — registration/license tax from ¥60,000 (GK) or ¥150,000 (KK, plus ~¥30,000–50,000 notarization). 1–3 weeks.
- Post-registration filings — tax office notifications, social insurance enrollment once you hire, and a company seal (still standard for banking and contracts).
- Open the corporate bank account — the slowest step for foreign-owned companies. Conservative screening means refusals happen; online banks and newer institutions are typically more accessible than megabanks. Budget weeks and apply to several.
All-in with professional support (judicial scrivener, translations, advisory), typical incorporation costs run ¥400,000–1,000,000. JETRO’s free setup support can carry a surprising share of this journey.
Realistic Budget (2026)
| Item | Range |
|---|---|
| Incorporation (taxes, notarization, professional fees) | ¥400,000–1,000,000 |
| Capital — if Business Manager visa needed | ¥30,000,000 (usable as working capital once deposited) |
| Capital — if no visa needed | ¥1 legally; ¥1–5 million practically for credibility |
| Office (visa requires physical space) | ¥50,000–300,000+/month depending on city |
| Visa application support (immigration specialist) | ¥150,000–400,000 |
Immigration and incorporation rules changed materially in October 2025 and continue to evolve. This article is general information, not legal or immigration advice — verify current requirements with the Immigration Services Agency, JETRO, or a qualified gyoseishoshi/immigration lawyer before committing funds.
After Setup: The Part That Actually Determines Success
Incorporation is administrative; survival is commercial. The founders who make it treat these as day-one priorities: a properly localized Japanese presence, a clear answer to how Japanese customers will find you, and pricing/service standards that match local expectations. The company registration is the easiest 5% of starting a business in Japan.
Frequently Asked Questions
Can a foreigner start a business in Japan without living there?
Yes. Incorporation has no nationality or residency requirement, and 100% foreign ownership is normal. You only need the (now stricter) Business Manager visa if you personally want to reside in Japan to run the company — owning and directing it from abroad with local operational support is a common structure.
How much money do I need to start a business in Japan as a foreigner?
If you need the Business Manager visa: ¥30 million in capital (since October 2025) plus incorporation costs of roughly ¥400,000–1,000,000 and a physical office. If you already hold a workable residence status or run the company from abroad: incorporation costs plus practical capital of ¥1–5 million is enough.
Is the ¥30 million requirement really new?
Yes — it took effect October 16, 2025, replacing the ¥5 million threshold that stood for decades, alongside new Japanese-language (JLPT N2) and full-time staffing requirements. Many articles online still cite the old rules; check dates on anything you read.
Should I form a GK or a KK as a foreign founder?
GK for most first entries: cheaper (from ¥60,000), faster, convertible to KK later. Choose KK if you’ll pitch conservative enterprises, seek Japanese investment or hire senior local talent early. The visa treats both equally — substance, not entity type, is what immigration evaluates.
Where to Go Next
For the full operating picture — culture, taxes, hiring, banking — continue with Doing Business in Japan. If you’re still validating whether Japan deserves the investment, start with Japan Market Entry Strategy instead — the smartest founders prove demand before they incorporate.
