A Foreign Company’s Guide to Entering Japan — What, in What Order, and By When?

“We want to enter the Japanese market, but we don’t know where to start” — this is the most common question we hear from executives and staff at overseas companies. Company formation, licenses and permits, residence status (visas), tax, and labor matters span a wide range, and each is handled by a different professional. If you move ahead piecemeal without seeing the whole picture, you can easily hit roadblocks such as “the company is registered, but the visa won’t come through” or “we can’t open a bank account, so we can’t move the capital.” This article organizes the entire process of a foreign company entering Japan into 5 areas, 4 phases, and 3 time-consuming steps, and helps you identify which pattern fits your company (subsidiary + intra-company transfer / Business Manager / representative office) — explained in plain terms by an immigration lawyer specializing in international work.

Entering Japan Is Built from “5 Areas”

The procedures for entering Japan look complex, but once organized they fall into the following 5 areas. This article takes a bird’s-eye view of the whole process of entering Japan — including a foreign company’s company-formation flow — along these 5 areas. Grasp these, and you’ll essentially have the map for market entry.

• Choosing the form of entry ― Decide what form your base in Japan will take (subsidiary, branch, or representative office). This is the first fork in the road, and it greatly affects the subsequent procedures, costs, and how easily you can obtain visas.
• Company formation ― Prepare and notarize the articles of incorporation (the document setting out the company’s basic rules), complete the incorporation registration, and so on. Registration procedures are handled by a judicial scrivener (shihoshoshi).
• Licenses and permits ― Depending on your business, you may need a government license or notification before you can start operating (an immigration lawyer’s area). “Forming a company = being able to operate right away” is not always true.
• Residence status (visa) ― Obtain the residence status that lets your representative or employees engage in activities in Japan (the area of an immigration lawyer specializing in international work). Commonly called a “visa,” its formal name is “residence status.”
• Tax and labor ― Tax matters such as corporate tax and consumption tax (handled by a tax accountant), and labor matters such as social insurance and employment contracts (handled by a labor and social security attorney). Time-limited procedures begin right after formation.

What matters is that these 5 areas are not independent; they are interrelated. For example, “how much capital to set” is a company-formation issue and, at the same time, affects visa requirements and bank-account screening. “Where to locate your office” likewise touches formation, visas, and licensing alike. That is precisely why, rather than proceeding separately area by area, it is essential to survey the whole and plan the sequence.

The Overall Timeline: 4 Phases in Chronological Order

When should each of the 5 areas be advanced? Entry generally proceeds in the following 4 phases. First, get a feel for the overall flow and for who handles each step and roughly how long it takes.

※ Durations are general estimates only. They vary greatly depending on the business, the chosen form of base, and the situation at local governments and reviewing agencies. In particular, Phase 3 — licenses, visas, and accounts — often takes longer than expected.

A common misconception here is that you can simply proceed in a single line: “formation → licenses → visa → launch.” In reality, it is more practical to run Phases 2 and 3 “in parallel.” Because visa screening checks the company’s actual business substance (office, capital, business plan), and licensing is also tied to how ready the business is, waiting until formation is entirely finished before starting will push the whole schedule back significantly. The balance between sequence and parallelism determines the speed of entry (explained in detail in the “Parallel Progress & Sequencing” article).

The “3 Critical Paths” That Delay Your Launch If Overlooked

An entry schedule has “rate-limiting steps” — bottlenecks that determine the total time required. A critical path is the route that takes the most time in the overall process and whose delay directly translates into a delay for the entire project. For a foreign company’s entry, the following 3 are especially time-consuming, and if you don’t start early, the whole schedule slips.

• Licenses and permits
  Depending on the industry, you cannot start operating until the license comes through. For example, dealing in used goods requires a secondhand-goods dealer license (kobutsusho), and a restaurant requires a business permit. The authority you apply to (police station, public health center, prefecture, etc.) differs by industry, and it can take several weeks to several months for a license to be granted after document review and on-site inspection. If you assume “just form the company and you can operate,” this is where you get stuck. (See the “Licenses & Permits” article.)
• Residence status (visa)
  For a representative or employees to work in Japan, residence status is required. To bring someone from overseas, you go through a multi-stage process: (1) apply to Immigration for a Certificate of Eligibility (COE: a document that proves in advance that the activity in Japan meets the requirements); (2) obtain a visa issued at the Japanese embassy or consulate in the home country; and (3) enter Japan. The screening alone generally requires an allowance of about 3–4 months (and it has tended to take longer since the October 2025 revision). Moreover, the “Business Manager” residence status discussed later was significantly tightened in October 2025. (See the “Business Manager Visa” article.)
• Opening a bank account
  A corporate bank account is the lifeblood of the business, but screening for foreign-owned, newly established companies with foreign representatives has been especially strict in recent years, and opening one takes time. The tricky part is that paying in the capital at formation and opening the account tend to become a “chicken-and-egg” situation. How you explain the business’s substance and address is key. (See the “Bank Account” article.)

What these 3 have in common is that they are all of the “once you apply, all you can do is wait for the result” type. That is precisely why the trick to not slowing down the whole entry is to start preparing in parallel as early as possible, rather than beginning only after formation is finished.

Which Pattern Is Yours — A 3-Pattern Diagnosis for Market Entry

How you proceed with entry changes depending on “who is coming to Japan, and why.” In particular, for a foreign company, the executive does not necessarily come to Japan in person, so the way you choose a visa differs from that of an individual entrepreneur — something to keep in mind. Let’s look at 3 typical patterns.

Pattern A: Keep the head office as is and send employees to run a Japanese subsidiary

This is the case where you have a head office in your home country and send its employees or officers to run a subsidiary in Japan. Here, one possible option is the residence status called [Intra-company Transferee]. It can be used to transfer an employee who has worked continuously for a certain period at an overseas head office or the like (for example, at least one year immediately before the transfer) to a related company in Japan (a subsidiary, branch, etc.), and it does not impose a capital requirement like the “Business Manager” status discussed later. People tend to assume “a foreign company means the Business Manager visa,” but if you take the form of transferring an employee, Intra-company Transferee becomes a strong candidate (there are certain requirements, and it also depends on the job duties. If the activity the transferred person mainly performs in Japan is the management and administration of the company itself, then “Business Manager” — not Intra-company Transferee — is required. See the “Business Manager Visa” article for details).

Pattern B: The founder or executive comes to Japan to manage and own the business

This is the case where the founder or owner personally resides in Japan to manage and own the company. Here, the [Business Manager] residence status (the so-called Business Manager visa) is the basis. However, due to the October 2025 system revision, multiple requirements — capital, office, Japanese-language ability, management experience, and expert review of the business plan — became significantly stricter. Because you may fail to meet the requirements if you go by your pre-revision assumptions, making an early assessment is important.

Pattern C: Start with market research and information gathering

If you are at the stage of wanting to study the market or customers before a full-scale entry, a representative office is an option. The bar for setting one up is low, but a representative office cannot conduct sales activities or conclude contracts, and in principle it cannot open a corporate bank account in the office’s name (in practice, it is generally run using an account in the representative’s personal name). If you choose it with the same mindset as a representative office in your home country, you may end up unable to start your business, so caution is needed.

That said, if the executive wants to come to Japan but cannot immediately meet the post-revision “Business Manager” requirements, there is also a way to use, as an entry point, a scheme that allows you to stay for a certain period to prepare to start a business (such as the Startup Visa). Which pattern fits your company, and the detailed requirements for each residence status, can be sorted out individually in a free consultation. First, keep in mind that foreign companies have an A / B / C branching, and it is not necessarily only the Business Manager visa.

6 Points to Watch Especially When Entering Japan (Detailed in Later Articles)

Japan’s systems include some distinctive points where overseas companies easily stumble if they proceed on “the common sense of their home country.” Later articles in the series explain each one, but here is a preview of the outline as a starting point.

• The seal (hanko) system ― In Japan, it is customary to use a registered seal called a “jitsuin” and its certificate (a seal certificate, inkan shomei) when signing contracts or registering. It is a puzzling mechanism for those from a signature-based culture; foreigners obtain a “signature certificate” at an overseas diplomatic mission or the like in place of a seal certificate.
• Address and office ― Company registration and visas require a real address where business is actually conducted. Depending on the form, it can be hard to satisfy the requirements with a virtual office.
• Remittances from overseas ― Paying in capital or transferring funds from the head office may require a notification under the Foreign Exchange and Foreign Trade Act (the Forex Act).
• Opening a corporate account ― As noted above, account-opening screening for foreign-owned, newly established companies is strict, so anticipating the lead time is important.
• Dismissal regulations ― “You can freely dismiss employees in Japan” is a misconception. Japanese labor law places strict constraints on dismissal, so you need to understand the rules before hiring.
• Whether a virtual office is allowed ― Many companies consider a virtual office to cut costs, but it can be unusable in relation to visa or licensing requirements.

A Guide to Every Article in the Series — Read by the Topic That Interests You

This series is organized along the flow of entry. Read from whichever topic interests you (each article will be published in turn).

Stage 1: Deciding the Form and Forming the Company

Subsidiary, Branch, or Representative Office — What Each Can and Cannot Do When a Foreign Company Enters Japan
Compares the differences among the 3 forms of base by “whether you can operate, open accounts, and how easily you can get visas,” and more, to prevent choosing the wrong form.

Stock Company vs. Limited Liability Company — Which Should a Foreign Company Choose? Comparing Credibility, Cost, and Flexibility
Compares the cost, social credibility, and management flexibility of a stock company (KK) and a limited liability company (GK), and organizes how to choose.

The Flow to Forming a Company in Japan — Hurdles Unique to Foreign Companies (Seals, Signature Certificates, Articles Notarization, BOJ Notification)
Explains the formation procedures step by step, focusing on the points to watch.

Stage 2: Parallel Procedures (Licenses and Visas)

Does Your Business Need a License? — Industries to Watch and Where to Apply
Lists and organizes representative industries that require permits, along with where to apply and rough timeframes.

The Complete Guide to the Business Manager Visa — Capital of 30 Million Yen, Japanese, Employment, Office: How to Meet the 6 Requirements [Updated for the October 2025 Revision]
As the most important topic, explains in detail the post-2025-revision “Business Manager” requirements and application flow.

Why Formation, Licensing, and Visas Fail Unless Done “in Parallel” — Common Progress Mistakes and the Right Sequencing for a Foreign Company’s Entry
Explains typical failure cases from proceeding separately and in sequence, and the right approach and progress-management tips.

Stage 3: Around Launch (Tax, Labor, Accounts)

Everything a Foreign Company Pays in Japan — A Plain Explanation of Corporate Tax, Consumption Tax, and Local Taxes
Organizes the big picture of Japanese taxes, from notifications right after formation to filing each fiscal period.

Before Hiring Your First Employee in Japan — The Basics of Social Insurance, Employment Contracts, and Dismissal Regulations
Explains social insurance, employment contracts, and work rules, along with the often-misunderstood dismissal regulations.

Why Foreign-Owned New Companies Find It Hard to Open Bank Accounts — Screening Tendencies and How to Prepare to Pass
Summarizes the background to strict account-opening screening and tips for preparing to pass.

Summary

How Much Does Entering Japan Cost? — Initial Costs and Running Costs, and Why the 30-Million-Yen Capital Should Be Counted “Separately”
Presents the combined cost picture for formation, office, visa, licensing, tax advisory, and more.

Common Misconceptions and a Final Checklist for Entering Japan — To Make Your Entry a Success
The overall summary of the series and a final checklist before entry.

In addition, we will also add industry-specific case studies in turn (for example, the case of a U.S. automaker setting up a used-car export base in Japan).

In Summary — A “Single Point of Contact” Decides the Success of Your Entry

As we have seen, entering Japan consists of the 5 areas of ① choosing the form, ② company formation, ③ licenses and permits, ④ residence status (visa), and ⑤ tax and labor, each handled by a different professional. Registration by a judicial scrivener, tax by a tax accountant, labor by a labor and social security attorney, and licenses and visas by an immigration lawyer — the work is divided this way.

Herein lies a pitfall that foreign companies easily fall into. If you arrange these professionals separately, each looks only at their own scope, so it is easy to end up in a state where “no one is watching the whole.” As noted above, capital, office, and business plan affect multiple procedures simultaneously. When assumptions diverge among those in charge, rework occurs — such as “registration is done, but the visa screening pointed out that the business substance is insufficient,” or “the office we contracted for did not meet the visa requirements.”

This is exactly why a single point of contact has value. We, Touch Immigration Lawfirm, as an immigration law firm specializing in international work, organize the practical work needed to enter Japan from a whole-picture perspective and, in cooperation with our partner judicial scriveners, tax accountants, labor and social security attorneys, and others, provide support through a single point of contact. From choosing the form, to licenses and visas, to post-formation tax and labor, and on to opening a bank account, we manage progress while surveying the overall schedule and organizing the sequence and roles. We also handle multilingual communication with your overseas head office.

※ The content of this article is general information as of June 2026 and is not legal advice for any specific case. Requirements and amounts for residence status, tax, registration, and the like may change due to legal revisions, and treatment differs depending on individual circumstances. For specific decisions, please check the latest official information from the Immigration Services Agency, the National Tax Agency, and others, and consult a professional. Registration is handled by a judicial scrivener, tax by a tax accountant, and labor by a labor and social security attorney, with Touch Immigration Lawfirm coordinating as your point of contact.