Starting a Business in Japan as a Foreigner

Japan has one of the world’s most established economies and continues to attract entrepreneurs from around the globe. While there are strong opportunities for starting a business, navigating the process as a foreign founder involves understanding visa requirements, legal procedures and administrative systems that can be difficult to manage alone.

Knowing where to start—and who to work with—can make a significant difference.

Support for International Entrepreneurs

Sea and Forest Plan Co. is a company dedicated to supporting international residents in Japan with any visa matters. With almost 20 years of experience, their legal affairs office also provides services for international marriage or divorce procedures, naturalization permission applications, and any legal affairs related to private international law. Not sure what job you want to work in yet, or you’re still overseas and considering whether Japan is a good option for you? Sea and Forest Planning Co. can help with this too. 

Understanding the Process

In recent years, starting a business in Japan as a foreign national has become more accessible in some ways, but the process has also become more structured. Securing a Business Manager visa now typically requires demonstrating a clear business plan, financial stability and the ability to establish and sustain operations in Japan.

For many applicants, understanding and meeting these requirements can be challenging without local expertise.

One of the largest obstacles for business owners planning on establishing themselves in Japan is the language barrier. Once a company has been formed, you must report a settlement of accounts as well as other necessary documents to the tax office in Japan. For someone who can’t read or write Japanese, this procedure can be tricky to execute alone as the tax office does not provide any English-language services. Sea and Forest Plan Co. can provide support with its one-stop service from establishing a company to obtaining a Business Manager visa. With the help of its tax-account partner, they can solve any tax procedures issues causing you a headache. 

Once you have completed this process, you can also receive business support from the company’s partners if you need any support in terms of tax matters or applications for government subsidiaries. As a new business owner in Japan, it can also be incredibly useful to have good contacts in related services, and Sea and Forest Co. are partnered with investment brokers, stockbrokers, construction business operators, and trader partners that you are welcome to get in touch with for a chat. 

Business Manager Visa (Start Your Own Business in Japan)

If you want to run your own business in Japan, you’ll need the Business Manager Visa and a lot of cash to throw at it up front. It’s specifically for entrepreneurs and company founders. To qualify, you must:

1. Establish a legal business entity (e.g., a GK or KK)
2. Rent a physical office space (coworking spaces and online offices are not always accepted)
3. Show a minimum investment of ¥30 million (~USD $200,000)
4. Submit a detailed business plan, financial projections and hiring plans, reviewed by a licensed Japanese accountant or business consultant
5. Employ at least one Japanese national or long-term resident full-time
6. Have JLPT N2, or your employee needs to have significant Japanese language capacity
7. Bring either a master’s degree or at least three years’ of managerial experience

This visa is typically issued for an initial period of 1 year and is renewable as long as your business remains active, legitimate and profitable. Some city governments, like those in Tokyo or Fukuoka, offer startup support programs that can help you apply for this visa even before incorporation. It’s recommended to work with a lawyer familiar with starting a business. 

For a broader overview of visa pathways and what it takes to live and work in Japan, read our complete guide to living in Japan.

If you are deciding between starting an LLC or an Inc., here is some important information:

Tax system

Both LLCs and Inc.s have a corporation tax system and limited liability.

Processing time (average) 

LLC : 1 – 2 weeks      

Inc. : 2 – 4 weeks

Costs  

LLC : from around ¥ 60,000 – ¥ 100,000

Inc. :  from around ¥ 200,000 – ¥ 250,000

Title of President 

LLC : ‘Representative Partner’  

Inc. : ‘Representative Director’

Investment from Venture Capital 

A limited liability company (LLC and Inc) has no concept of listing as it does not issue shares. There are also cases of discordance between the ratio of investment and voting rights because unlike in a stock company, there is an absence of stockholder equality principles. Therefore, it’s trickier for an LLC to accept investments in comparison to a stock company. If you’re receiving a third-party allotment from Venture Capital, a stock company has an advantage over an LLC. 

Notarizing 

LLC : Notarizing is not necessary. 

Inc. : Articles of incorporation must be notarized through a public notary office, which can add time to the process.

Necessary documents for Sea Forest Plan Co.’s services

LLC : Only the certificate of each board member’s seal registration is required.

Inc. : It is necessary to provide the stockholder certificate, certificate of seal registration, and certificate of residence for each member of the board. 

Note: If you are applying from overseas and cannot obtain a seal of registration without official residence in Japan, you must submit proof of your home address and proof of signature from your country of residence’s authorities instead. 

For any questions or concerns about visa matters, contact Sea and Forest Planning Co linked below, where you’ll find a helpful Q&A section as well as a form for a free consultation. 

https://umk.jp

Sea and Forest Planning Co., Ltd. 

Sagami Building 2F, 7-13-6 Ginza, Chuo-ku

Originally published in March 2023. Last updated April 2026.