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Goal GuideJapan

Start a Business in Japan

11 min read

Business Manager visa for entrepreneurs: capital requirements, business plan, and setting up a company in Japan.

Reviewed by VisaMind Editorial·Last updated March 17, 2026·Sources: ISA, JETRO, MOFA

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Cherry blossoms framing Mount Fuji across the lake in Japan

Key takeaways

  • Formal municipal support and national business conditions are required before applying.
  • The Immigration Services Agency reviews and grants your business-related status.
  • You must comply with Japan’s tax rules, including withholding obligations when applicable.

Visa Options at a Glance

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The table below summarizes the main visa options for this goal, including who qualifies, the key filing requirement, and reported processing times.

Visa OptionWho It’s ForKey FilingProcessing Time
Business ManagerThe Business Manager visa is designed for individuals who will manage a business in Japan, allowing them to oversee operations and make strategic decisions.Form VISA-APPLICATION1-3 months
Startup VisaThe Startup Visa in Japan is designed for entrepreneurs who wish to establish and operate a business in Japan, allowing them to reside in the country while developing their startup.Form VISA-APPLICATION1-3 months

Use the linked visa pages for full eligibility details, required documents, and step-by-step instructions.

Business Requirements

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You must satisfy immigration and tax requirements before launching operations in Japan. The Immigration Services Agency of Japan (ISA) reviews your application and confirms your eligibility to manage a business.

If you’re applying under the Startup Visa framework, formal support from a Japanese municipality is required. It’s not optional.

Immigration Status and Municipal Support

To engage in business, you apply for a status that allows management, usually called Business Manager status. For the Startup Visa pathway, you’ll need approval from a local government first.

You must:

  • Submit a business preparation activity plan to a supporting municipality.
  • Ensure your plan meets standards under the Ministry of Economy, Trade and Industry order.
  • Obtain formal approval from the municipality before starting immigration steps.
  • Avoid submitting outdated or expired documents.

The municipality reviews your plan and checks that your activities fit its local program. ISA then examines your immigration application based on the municipal approval.

When you land in Japan, immigration authorities will screen you.

Tax and Income Compliance

Japan imposes tax obligations on income tied to your business. Withholding and filing rules apply from the start.

If certain types of income are paid to a non-resident inside Japan, the payer must:

  • Withhold income tax.
  • Withhold special income tax for reconstruction.

If withholding applies, file a final tax return to settle your liability.

If income is paid outside Japan and not subject to withholding, file a quasi-final tax return and pay the tax.

These rules cover various income types, including some pensions under life or casualty insurance contracts.

Key Compliance Points

You’re responsible for ensuring:

  1. Your business plan stays consistent with what the municipality approved.

  2. Your immigration status matches your activities, especially if you move from Startup Visa to Business Manager status.

  3. Your tax filings are timely and accurate, no matter your withholding situation.

Non-compliance can affect both your tax standing and your immigration status with ISA.

Traditional temple streetscape in Kyoto, Japan
Historic temple architecture in Kyoto.

Costs and Fees

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Official government fees for the main visa options associated with this goal are listed below. Fees may change — verify the current schedule through the linked visa pages.

Visa / RouteFeeAmount
Business ManagerApplication fee¥10,000
Business ManagerResidence card fee¥4,000
Startup VisaVisa issuance fee¥6,000

The Application Process

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You apply for business status through the Immigration Services Agency of Japan (ISA). Most entrepreneurs go for Business Manager status, while some start with a Startup Visa offered by certain local governments.

Before submitting, confirm which status fits your case and where to file. processing times vary by category and location, so check current timelines directly with ISA.

Step‑by‑Step Process

Prepare Your Documents.

Fill out the Form Visa Application form with accurate details. Gather your passport, recent photograph(s), and business documents before filing. Usually, you’ll also need a Certificate of Eligibility (COE).

Apply for the Certificate of Eligibility (COE).

You can appoint a proxy in Japan to submit the COE application. ISA reviews your business plan and evidence, and this stage often takes months due to document checks.

Submit Your Visa Application.

Once ISA issues the COE, submit your visa application with all required documents. While a spouse or child may apply without a COE, having one is strongly recommended.

Wait for Processing.

Processing times depend on your status. For example, business activities under Short‑term Stay (Standard) take about 5 days as of February. Business Manager and Startup Visa categories may take longer.

Required Documents Checklist

  • Valid passport
  • Completed visa application form
  • Recent photograph(s)
  • Certificate of Eligibility (COE) (recommended or required)
  • Business verification documents

All forms must be complete and consistent. Incomplete filings delay review and can extend processing by months.

Neon-lit Tokyo street at night in Japan
Tokyo street life after dark.

Proving Source of Funds

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You’ll need to show ISA that your business funds come from a lawful, traceable source. This is reviewed as part of your Business Manager or Startup Visa application.

Meeting published requirements doesn’t guarantee approval. ISA reviews each case on its own facts.

What ISA Expects to See

You must demonstrate that your capital and operating funds are legitimate. ISA checks if the money qualifies as an acceptable source and if you can document its origin.

Prepare evidence showing:

  • The origin of the funds
  • The movement of the funds
  • That the funds qualify as domestic source income, where applicable
  • That the money is available for your Japanese business

If your documents are unclear or incomplete, ISA may doubt the credibility of your funds. Clear records help avoid that.

Using Official Requirements

ISA requirements can change, and they make the final decision.

Don’t assume that meeting financial thresholds or providing example documents ensures approval. ISA retains discretion.

If you’re applying under a Startup Visa, confirm exact documentation and process with ISA before you submit.

Government Fees

You must pay the applicable visa issuance fee when required.

ItemFee
Startup Visa issuance feeJPY 6000

Pay in JPY. Incorrect amounts delay processing.

Practical Approach

Organize your financial documents before applying. Keep records consistent—bank statements, transfer confirmations, business registration materials should all match.

If you rely on income treated as domestic source income, your documents should clearly show that. When uncertain, follow ISA’s published instructions and align your evidence accordingly.

Common Pitfalls

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Many first-time founders focus on their business plan and ignore immigration sequencing. That can delay or block entry.

If you use a Startup Visa, you must secure a Certificate of Eligibility before applying for the visa. Skipping this step leads to refusal. ISA won’t overlook this.

Nationality-specific documents are another issue. Some applicants, including Chinese nationals, must submit extra documents. Missing these means ISA will treat your application as incomplete.

Understanding how Japan defines taxable income is also key. Your tax exposure depends on whether you're a resident or non-resident.

If you’re a non-resident, Japan taxes only domestic-source income. This includes:

  • Payment for certain personal services performed in Japan: entertainment, athletics, legal, accounting, or architectural services
  • Monetary awards linked to advertising a business conducted in Japan

Assuming foreign income is excluded without checking the Income Tax Act rules risks misreporting.

Cost planning often gets overlooked. Many founders budget for incorporation but forget immigration-related fees for Business Manager status.

ItemFee (JPY)
Application fee (Business Manager)¥10,000
Residence card fee (Business Manager)¥4,000

These are government fees. You must pay them to maintain lawful status.

Confusing visa categories is common. The Startup Visa is an entry pathway; Business Manager status governs ongoing management. If you apply under the wrong framework, ISA won’t fix it for you.

Avoid these errors:

  • Applying for a Startup Visa without first getting a Certificate of Eligibility
  • Submitting incomplete nationality-specific documents
  • Misunderstanding the scope of taxable income as a non-resident
  • Underestimating required government fees for Business Manager status

You reduce risk by verifying each requirement with ISA before filing. Careful sequencing, complete documentation, and accurate tax planning protect both your status and your business.

Shinkansen bullet train waiting at a station in Japan
Japan’s shinkansen and the pace of modern travel.

Your Status as an Investor

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When you enter Japan to start your business, an immigration officer at the port of entry determines your status of residence and period of stay. The officer grants landing permission and stamps your passport.

That stamp controls your legal activities in Japan. You can’t operate outside the scope of your granted status.

The Immigration Services Agency of Japan (ISA) manages applications, status changes, and extensions.

Business Manager Status

If you plan to run operations, you need a status that permits business management. Many founders apply for the Business Manager category.

Your approved status defines:

  • The activities you can perform
  • How long you can stay
  • Whether your business activities comply with immigration rules

Operate strictly within your permitted activities. If your business model changes, you may need to apply for a status change through ISA.

Your period of stay isn’t indefinite. ISA sets the duration at entry or approval. Monitor expiration dates.

Startup Visa Considerations

Some founders enter Japan under a Startup Visa before switching to long‑term management status. Your initial permission may only cover preparatory activities.

You must stick to the specific scope granted at landing. Immigration officers evaluate your declared purpose and assign a matching status.

If your activities expand beyond that, request an update from ISA before proceeding.

Income Connected to Your Operations

Your investor status affects how income linked to Japanese operations is treated. Income connected to business activities in Japan may include:

  • Interest on loans tied to your Japanese operations
  • Royalties for industrial property rights or copyrights used in Japan
  • Compensation for transferring such rights
  • Rental payments for machinery or equipment used in Japanese operations

These amounts relate directly to activities during your authorized period.

All income‑generating activities must align with your approved status. Operating outside that scope can affect future renewals or status changes.

Confirm your current status and permitted activities with ISA before expanding operations.

Path to Permanent Residence

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You build your path to permanent residence by maintaining lawful status and stable business activity under visas like the Business Manager or a qualifying Startup Visa.

ISA reviews your status, extensions, and any future changes. Always keep your residence status valid.

ISA requires visa issuance fees in JPY (¥).

If you apply under a business category processed as Work / Long-term without a Certificate of Eligibility, expect a processing period of 1 to 3 months (as of February 2026). Plan renewals early to avoid gaps.

ItemKey Point
AuthorityImmigration Services Agency (ISA)
Processing Time (Business – Work / Long-term without CoE)1–3 months
FeesPayable in JPY (¥) upon visa issuance

Your long-term position is stronger with legitimate business income in Japan. This can include:

  • Income from managing or holding assets in Japan
  • Income from transferring certain assets located in Japan
  • Profit distributions from a partnership operating through a permanent establishment in Japan
  • Dividends or surplus distributions from domestic corporations

ISA checks that your activities match your authorized status. Accurate financial records and corporate documentation are essential.

If you’re a Chinese national, submit additional documents like a copy of your family register and proof of residence when required.

Permanent residence depends on a stable, compliant immigration history. Maintain your Business Manager or Startup Visa status properly and keep your company within Japanese law.

What Other Entrepreneurs Did

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Entrepreneurs who started businesses in Japan usually followed a fairly structured process. They documented each step and treated immigration and local compliance as parallel requirements.

Most secured a certificate of confirmation from the local government before going to the Immigration Services Agency (ISA). After that, they submitted this certificate with supporting documents to the Regional Immigration Bureau or a branch office.

Applicants for the Business Manager status and those using a Startup Visa both tended to do local approval first, then immigration. It’s a sequence that avoids a lot of trouble.

Payments drew close attention from Japanese authorities. Founders identified and documented transactions like:

  • Transfers of land or rights related to land
  • Building ownership or rights tied to real estate
  • Real estate rent or similar usage rights
  • Salaries, wages, or other compensation for work performed in Japan
  • Compensation paid to directors of domestic corporations, even for work done outside Japan
  • Public pensions or retirement allowances received in Japan

Records showed the purpose and nature of each payment. This helped prevent delays at the Regional Immigration Bureau, which works under ISA oversight.

Some founders made a basic checklist before filing:

Compliance AreaWhat They Prepared
Local ApprovalCertificate of confirmation from local government
Immigration FilingComplete document set for Regional Immigration Bureau
Property RightsContracts for land, buildings, or rental agreements
CompensationPayroll records and director remuneration details

Submitting partial information and expecting to add more later rarely worked.

Leasing office space required founders to document rent and legal usage rights. If they acquired property, they clarified whether it was ownership or usage rights.

Entrepreneurs paying themselves or staff kept careful records of salaries. This covered compensation for services in Japan and payments to directors, even if some work happened abroad.

ISA manages status applications and changes. Local government confirmation usually starts the process.

Those who coordinated both levels early avoided last-minute corrections.

Aligning local certification, property documentation, and compensation records before filing reduces risk.

Start a Business in Other Countries

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FAQs

What is the Startup Visa?

The Startup Visa is a separate pathway related to starting a business in Japan.

You must follow the procedures set by the relevant authorities and the ISA.

In what currency are immigration fees paid?

All official immigration fees are set in JPY (¥).

Confirm the exact amount with the Immigration Services Agency before you apply.

How long does the Business Manager take to process?

The Business Manager currently takes 1-3 months. Processing time depends on the completeness of your application, the adjudicating office, and current case volume.

How long does the Startup Visa take to process?

The Startup Visa currently takes 1-3 months. Processing time depends on the completeness of your application, the adjudicating office, and current case volume.

Who qualifies for the Business Manager?

The Business Manager visa is designed for individuals who will manage a business in Japan, allowing them to oversee operations and make strategic decisions.

Who qualifies for the Startup Visa?

The Startup Visa in Japan is designed for entrepreneurs who wish to establish and operate a business in Japan, allowing them to reside in the country while developing their startup.

What type of visa do I need to start a business in Japan?

For the Business Manager: The Business Manager visa is designed for individuals who will manage a business in Japan, allowing them to oversee operations and make strategic decisions.

How much money do I need to invest to start a business in Japan?

Minimum capital requirements in Japan vary by visa category. Check with ISA for current thresholds and acceptable investment types.

Can my family join me on a business visa in Japan?

Business visa programs in Japan typically allow you to include your spouse and dependent children. Family members may receive permission to engage in activities other than permitted (資格外活動許可) — limited to 28 hours/week.

What is the main form or filing required to start a business in Japan?

The primary filing requirement is Form VISA-APPLICATION for the Business Manager. Each pathway may have additional forms and evidence requirements.

Important

VisaMind provides informational guidance only and is not a government agency. This is not legal advice. Requirements can change and eligibility depends on your specific facts. If your case is complex or high-stakes, consult a licensed immigration attorney.

Next steps

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