How to Set Up a Company in Japan: The Full Timeline From Zero to a Business Manager Visa

One-sentence summary: If you want to set up a company in Japan and obtain a Business Manager Visa (経営・管理ビザ), the process usually takes 4-7 months from preparation to arrival in Japan. The core sequence is: choose a company type -> secure office space -> complete incorporation -> prepare the extra materials required under the new standards -> apply for the visa -> enter Japan and complete post-arrival procedures. Since the new standards took effect in October 2025, the capital requirement increased from ¥5 million to ¥30 million, and new hard requirements were added for employee hiring, Japanese language ability, and management experience. As a result, preparation now takes longer than before. This guide breaks the process down step by step, including what to do, how much it costs, and where the common pitfalls are.

Overview of the Full Timeline

Below is a typical timeline. If you are applying from overseas, the overall process usually takes 1-2 months longer than if you are already in Japan. Under the new standards, you should also allow an extra 2-4 weeks for employee hiring preparation, expert evaluation, and other additional requirements.

Weeks 1-2       Weeks 2-3        Weeks 3-5           Weeks 5-7              Weeks 7-9                 Weeks 9-21          Weeks 21-23
   │               │                 │                   │                        │                         │                   │
   ▼               ▼                 ▼                   ▼                        ▼                         ▼                   ▼
Decide to start -> Choose company -> Secure office space -> Incorporate company -> Extra prep under new -> Apply for Business -> Enter Japan + post-
 a business         type              (1-3 weeks)          (2-3 weeks)            standards (2-4 weeks)     Manager Visa        arrival procedures
                    (1 week)                                                                                  (1-3 months review) (within 2 weeks after arrival)

Total: about 3-5 months if you are already in Japan | 4-7 months if you are overseas

These are estimates for a smooth case. Under the new standards, additional preparation such as employee hiring and an expert-reviewed business plan can extend the timeline further. It can also take longer if Immigration requests supplementary materials (追加資料), if finding office space is difficult, or if you apply during a busy season for Immigration, especially around April.

Step 1: Choose Your Company Type

In Japan, the two most common company structures for foreign entrepreneurs are the Kabushiki Kaisha (株式会社, KK) and the Godo Kaisha (合同会社, GK).

KK vs. GK: Detailed Comparison

Comparison Item	Kabushiki Kaisha (KK)	Godo Kaisha (GK)
Incorporation cost (actual out-of-pocket)	About ¥220,000-¥300,000	About ¥80,000-¥150,000
Articles notarization	Required (notary fee about ¥30,000-¥50,000)	Not required
Registration tax	¥210,000 (¥30 million × 0.7%)	¥210,000 (¥30 million × 0.7%)
Perceived credibility	Higher, widely recognized in Japan	Lower, less familiar to some clients and banks
Representative title	Representative Director (代表取締役)	Representative Member (代表社員)
Governance structure	Directors are required; a board can be established	Flexible; members are the decision-makers
Profit distribution	Based on shareholding ratio	Can be agreed more freely
Best suited for	B2B businesses targeting Japanese clients, fundraising, long-term operations	Small-scale businesses, solo projects, cost-first setups

My Recommendation

If your goal is to obtain a Business Manager Visa through company formation, a Kabushiki Kaisha (KK) should usually be your first choice. The reasons are practical:

During Immigration review, a KK is more familiar, so officers can usually understand your company structure more easily
When opening a corporate bank account, some banks apply stricter screening to GKs
When working with Japanese clients and business partners later, the name “Kabushiki Kaisha” tends to inspire more trust
The extra cost of roughly a few hundred thousand yen is usually worth it in the long run

That said, if your budget is tight, your business mainly targets overseas clients, and you do not need to build B2B relationships in Japan, a GK can still work perfectly well. Immigration will not deny your visa just because you formed a GK.

Step 2: Secure Office Space

Why Do You Need to Lease the Office First?

Many people assume they should register the company first and rent an office later. In Japan, the logic is usually the reverse:

When incorporating the company, you must state the head office address (本店所在地), which is your registered business address
When applying for a Business Manager Visa, Immigration requires an office lease agreement, and the permitted use stated in the contract must be “office” or “business use” (事務所 / 事業用)
Using a residential address to register the company is legally possible, but during visa review it often raises doubts about whether the business is genuine

Practical Advice for Finding an Office

1. Choosing the right type

Standard office lease (賃貸事務所): The most standard option and the most widely accepted by Immigration. Monthly rent ranges from around ¥30,000 for a small suburban room to several hundred thousand yen
Coworking space / virtual office (シェアオフィス・バーチャルオフィス): Cheaper, usually around ¥5,000-¥30,000 per month, but be careful. Not every virtual office can be used for a visa application. Immigration requires an independent office space that you can actually use in practice. A service that only provides an address and mail forwarding is very likely to be rejected
SOHO-type property: A residence-office hybrid. If the contract explicitly says “office use permitted” (事務所利用可), it can be a cost-effective option

2. Points to check in the contract

The permitted-use section of the contract must clearly state “office” or “business use”. “Residential use” is not acceptable
If you are overseas and do not yet have a company, you can first sign the lease in your personal name, then switch it to a corporate lease after incorporation
Keep the original contract carefully, because you will need to submit it with the visa application

3. Budget reference

Small office in Tokyo’s 23 wards: monthly rent around ¥50,000-¥150,000, with initial costs (deposit + key money + agency fee) typically equal to 3-6 months’ rent
Private room in a compliant coworking space: around ¥30,000-¥80,000 per month
Regional cities such as Osaka or Fukuoka: roughly 50-70% of Tokyo pricing

Step 3: Complete Company Incorporation

This is the part of the process with the most individual steps. Below is the sequence.

3-1. Prepare the Articles of Incorporation (定款, teikan)

The articles of incorporation are effectively the company’s “constitution.” They set out the company’s basic rules. The following are mandatory items:

Company name (商号, shogo): The name must include “Kabushiki Kaisha” if you are forming a KK
Head office address: Your registered business address (the smallest administrative area is sufficient, for example “Shinjuku-ku, Tokyo”)
Business purposes (目的, mokuteki): The scope of business activities. It is fine to draft these broadly, since Japan is relatively flexible on business-purpose wording, but you should make sure the listed purposes cover the business you will actually operate and the business activities described in your visa application
Total number of shares authorized for issuance
Amount of capital contributed at incorporation

Tip: It is usually better to include several related business purposes. For example, if you are doing trade, you can list “trading business,” “import/export agency services,” and “consulting services.” That gives you flexibility to expand later without having to amend the registration frequently.

3-2. Notarize the Articles of Incorporation (required for a KK)

Once the articles are prepared, you must have them notarized at a notary public office (公証役場, koshoyakuba).

Cost: ¥30,000 if capital is up to ¥1 million, ¥40,000 for ¥1 million-¥3 million, and ¥50,000 for anything above that
Documents required: three copies of the articles, the founders’ seal certificates, and identification documents
Time: usually completed the same day after an appointment, in about 30 minutes

What if you are overseas? You can appoint a Japanese administrative scrivener (行政書士, gyoseishoshi) or judicial scrivener (司法書士, shihoshoshi) to handle it for you. You will need a power of attorney that has been notarized and consularly authenticated.

3-3. Deposit the Capital (出資金の払込み)

After the articles are notarized, you must transfer the capital into the founder’s personal bank account.

Key points to note:

The deposit date must be on or after the date of notarization
The sender name on the transfer must match the founder’s name
After the funds arrive, you need to prepare a capital payment certificate (払込証明書), along with copies of the bankbook or transaction record showing the transfer
Capital amount: Legally, a company can be formed with as little as ¥1. But under the Business Manager Visa’s new standards effective from October 2025, the required capital is at least ¥30 million (the old standard was ¥5 million)

For a detailed breakdown of the capital requirement and other Business Manager Visa criteria, see Detailed Eligibility Requirements.

What if you are overseas and do not have a Japanese bank account? A collaborator in Japan, such as a business partner, friend, or a professional office assisting you, can help open or provide an account as a founder or cooperating party to receive the funds.

3-4. Register the Company at the Legal Affairs Bureau (設立登記)

Once the following materials are ready, submit the incorporation filing to the Legal Affairs Bureau (法務局, homukyoku) with jurisdiction over the company’s address:

Incorporation registration application form
Notarized articles of incorporation
Proof of capital deposit
Letters of acceptance of appointment from the directors
Company seal registration form (印鑑届出書)
Founders’ resolution
Registration tax: ¥150,000 for a KK / ¥60,000 for a GK as the statutory minimum, but the actual amount is calculated as capital × 0.7%, whichever is higher (for example, with ¥30 million in capital, the tax is ¥210,000)

The company is officially formed on the date you submit the incorporation filing (not the date the review is completed).

The Legal Affairs Bureau’s review usually takes 3-7 business days. Once completed, you can obtain the certificate of registered matters (登記簿謄本 / 履歴事項全部証明書) and the seal certificate (印鑑証明書).

Step 4: Apply for the Business Manager Visa

Once the company has been established, you can formally apply to the Immigration Services Agency / regional immigration office (出入国在留管理局).

COE (Certificate of Eligibility) vs. Change of Status

	COE Application	Change of Status
Who it is for	Applicants overseas with no current status of residence in Japan	Applicants already in Japan on another visa
Where to apply	A proxy in Japan files with the competent immigration office	The applicant files in person with the competent immigration office
Review time	1-3 months	1-3 months
Process	Obtain COE -> apply for visa at a Japanese embassy/consulate overseas -> enter Japan	Once approved, receive a new residence card directly

Main Application Documents

Application form for Certificate of Eligibility or Change of Status
ID photo (4 cm × 3 cm)
Certificate of registered matters for the company
Business plan — the most important document
Financial projections such as profit-and-loss forecasts
Office lease agreement
Proof of capital contribution
Applicant’s resume / CV
Copy of passport

For more detail on preparing the documents, you can use our Document Checklist Tool to review them item by item.

Points to Keep in Mind During Review

During the review period, Immigration may send a request for additional materials (資料提出通知書). If that happens, respond carefully and promptly
Do not make unnecessary changes to the company’s registered information while the application is under review
The official standard processing time published by the Ministry of Justice is 1-3 months, but in practice many applicants in Tokyo experience about 6-10 weeks

For the full visa application process and strategy, see Complete Application Guide.

Step 5: Enter Japan and Complete the Follow-Up Procedures

5-1. Resident Registration (住民届)

Within 14 days after moving into your residence in Japan, register your address at the local municipal office (市区町村役場). Bring your passport and residence card.

5-2. Tax Filings

After the company is established, you must submit the required business commencement filings to the following authorities:

Tax office (税務署): corporation establishment notification, application for blue return status, and related filings
Prefectural tax office (都道府県税事務所): business commencement notice
Municipal office (市区町村役場): corporation establishment notice

It is strongly advisable to hire a licensed tax accountant (税理士, zeirishi) for this. Monthly retainer fees are typically around ¥20,000-¥50,000.

5-3. Opening a Bank Account: The Step That Fails Most Often

Opening a personal bank account is relatively straightforward. In most cases, you just bring your residence card and certificate of residence to the bank.

Opening a corporate bank account is the real challenge. In recent years, Japanese banks have become extremely strict when screening corporate accounts, especially where the representative is a foreign national and the company is newly established with no operating history.

Practical advice:

Start with online banks: GMO Aozora Net Bank, PayPay Bank, and similar online banks are often more flexible
Then try major city banks: MUFG, Mizuho, SMBC. It is often easier after the company has some track record
Prepare thoroughly: Bring the certificate of registered matters, articles of incorporation, business plan, office lease, residence card, and certificate of residence
Do not panic if you are rejected: Try several banks. Online banks are often the fallback option

Once the corporation is established, it is legally required to enroll in social insurance (health insurance + employees’ pension). This applies even if the company only has one person, the Representative Director. The premium is roughly 30% of the monthly compensation amount, split equally between the company and the individual.

Overseas Applicants vs. Applicants Already in Japan: Comparing the Two Paths

	Overseas	In Japan (with a valid visa)
Signing the office lease	Usually handled through a collaborator in Japan or via remote contracting	You can view properties and sign directly
Articles notarization	Usually handled through an administrative scrivener with a consularly authenticated power of attorney	You can attend in person or appoint a proxy
Capital deposit	Usually requires a collaborator’s Japanese bank account	You can use your own Japanese bank account
Visa application	COE application (filed by a proxy)	Change of Status application (filed by yourself)
Typical total timeline	3-6 months	2-4 months

Cost Breakdown: How Much Does It Take to Get From Zero to Operating?

Using a Kabushiki Kaisha (KK) with ¥30 million in capital as the example, under the new standards effective from October 2025:

Cost Item	Amount (JPY)	Notes
Company incorporation
Articles notarization fee	50,000	Flat ¥50,000 for capital above ¥3 million
Registration tax	210,000	¥30 million × 0.7% = ¥210,000, which is above the minimum ¥150,000
Company seals	10,000-30,000	Representative seal + bank seal + square seal
Subtotal for incorporation	Approx. 270,000-290,000
Professional fees
Administrative scrivener (visa filing support)	150,000-300,000	Usually includes support for the business plan
Judicial scrivener (company registration)	60,000-120,000
Expert evaluation of the business plan	50,000-200,000	By a certified SME consultant, CPA, or tax accountant
Office space
Initial office costs	200,000-600,000	Deposit + key money + agency fee
First month’s rent	50,000-150,000
Personnel cost reserve
Full-time employee (6 months’ salary + social insurance)	1,200,000-1,800,000	Monthly salary of about ¥180,000-¥250,000 + approx. 15% social insurance
Capital	30,000,000	Operating funds for the company under the new ¥30 million standard

Summary: excluding capital, roughly ¥2 million-¥3.5 million. Including capital, roughly ¥32 million-¥33.5 million.

⚡ Compared with the old standards: Under the old rules, capital was ¥5 million and the total setup cost was roughly ¥700,000-¥1.5 million, for a total of about ¥5.7 million-¥6.5 million. Under the new standards, the total required investment has increased by around five times, and the barrier to entry is much higher.

Frequently Asked Questions

Q1: Can I withdraw the ¥30 million capital after the company is established?

Yes, it can be used for legitimate business expenses. But if you transfer out a large amount immediately after depositing it, that can become a problem at the renewal stage. The capital is supposed to be your operating fund, so using it normally for rent, inventory, payroll, and similar expenses is fine. With a larger amount like ¥30 million, Immigration will also scrutinize whether the use of funds is reasonable more closely than before.

Q2: What if I do not have ¥30 million?

Under the new standards, ¥30 million in capital is a hard requirement, with very little room for workaround. If you do not have sufficient funds, your main options are: (1) find partners to invest with you, (2) consider whether another residence status may fit your situation better, or (3) wait until your funding is ready. The old “¥5 million or two employees” alternative no longer applies.

Q3: Can I register the company at my home address?

Legally, yes. But for visa purposes, it is very likely to cause problems unless it is a SOHO-type property and the contract explicitly says office use is permitted.

Q4: Should I do it myself or hire an administrative scrivener?

At minimum, it is usually worth hiring a professional administrative scrivener for the visa application stage. Paying ¥150,000-¥300,000 for a materially better approval chance is often good value.

Q5: How long is the initial Business Manager Visa usually granted for?

Usually 1 year for the first grant. At renewal, depending on business performance, you may receive 1 year, 3 years, or 5 years.

Q6: Can I do part-time work after getting the visa?

In principle, no. You would need permission for activities outside your status, and restrictions apply.

Q7: Can my spouse and children come with me?

Yes. They can apply for Dependent visas (家族滞在, kazoku taizai).

Q8: Can a GK later be converted into a KK?

Yes, through an organizational conversion (組織変更), but the procedure is fairly complex and not cheap. In most cases, if you think you will eventually want a KK, it is better to choose a KK from the start.

Q9: How is the transition period under the new standards structured?

Existing Business Manager Visa holders have a three-year transition period until October 2028. During that transition period, renewals do not need to satisfy the new requirements such as ¥30 million in capital, full-time employees, and expert evaluation. But renewals after October 2028 will need to meet all of the new standards in full. It is best to start planning well before the transition ends.

Q10: I am already preparing, but the new standards took effect in October 2025. Is it still possible to make it in time?

If you filed your visa application before October 16, 2025, the old standards applied, including the ¥5 million capital requirement. Applications filed after that date are reviewed under the new standards. You should confirm your exact timeline with an administrative scrivener, because catching the old-standard window made a major difference in cost and difficulty.

Q11: Under the new standards, full-time employees are also required. Are there restrictions on the employees’ residence status?

Yes. The full-time employees must hold a status listed in Appended Table II of the Immigration Act, such as Japanese national, permanent resident, spouse of a permanent resident, spouse of a Japanese national, or long-term resident. Foreign nationals on ordinary work visas, such as Engineer/Specialist in Humanities/International Services, do not count. In practice, the simplest route is usually to hire Japanese nationals.

Recommended Next Steps

Assess your situation: Are you overseas or already in Japan? Is your budget sufficient?
Prepare the capital: Make sure the full ¥30 million is available and that you can explain the source of funds. With the higher amount under the new standards, proving the legitimacy of the funds matters even more
Check the new-standard requirements: Confirm whether you meet the management-experience requirement (master’s/doctoral degree or 3 years of experience), Japanese-language requirement (N2), and other conditions
Find office space: On Japanese property portals such as HOMES and SUUMO, search for “貸事務所”
Hire an administrative scrivener: Choose one with direct experience in Business Manager Visa cases
Draft the business plan: Start by clarifying the business logic and revenue model

📋 Document Checklist Tool — Check your preparation progress 📖 Detailed Eligibility Requirements — Understand the visa criteria 📝 Complete Application Guide — Full visa application process

This article is based on Japanese laws, regulations, and practical experience, and is provided for reference only. It does not constitute legal advice. For case-specific advice, consult a qualified administrative scrivener or attorney.