Japan Market Entry Checklist: From Pre-Incorporation to Launch

Entering Japan follows this order: decide the entry structure and the manager’s status of residence, incorporate the company, complete post-incorporation filings and open a bank account, then put licenses and staff in place. Getting the order wrong leads to rework, such as signing a lease on an office that does not meet visa requirements. This article sets out a checklist of what to confirm at each stage.

The Japan entry process at a glance

The procedures for entering Japan fall into four broad stages. Because many authorities are involved, it is important to grasp the whole picture first.

Stage 1: Decisions to make before incorporation

Decisions made before incorporation shape every procedure that follows. Settle the following before registering the company.

Choose the entry structure

A base in Japan can take the form of a representative office, a Japanese branch or a Japanese corporation (subsidiary). A representative office is limited to preparatory activities such as market research and cannot carry out sales activities. A branch and a subsidiary differ in registration, taxation and the extent of the head office’s liability. The differences are compared in Branch vs subsidiary in Japan.

Decide the company’s basic details

• The trade name (company name), and whether it will be a kabushiki kaisha (株式会社, KK) or a godo kaisha (合同会社, GK)
• The business purpose (stated specifically, including any businesses that require a license)
• The head office address and the type of office lease
• The amount of capital and how it will be paid in
• The composition of the board and whether any director lives in Japan
• The financial year-end

Confirm the status of residence of whoever will run the business in Japan

A foreign national who lives in Japan and runs a company generally needs the Business Manager (経営・管理) status of residence (在留資格). The approval criteria were amended from 16 October 2025 and now require capital or equivalent of at least ¥30 million, at least one full-time employee, a certain level of Japanese language ability on the part of the applicant or a full-time employee, management experience or a relevant degree, and a business plan reviewed by a professional. Transitional measures apply to those already in Japan, but check the details of the requirements in the latest guidance from the Immigration Services Agency (出入国在留管理庁, ISA). Decide the amount of capital and how to choose the office on the basis of these criteria.

Secure an office

A head office address is needed for registration, but visa and license screening looks at whether the office can actually be used for the business. For the Business Manager visa, an office that doubles as a residence is generally not accepted, and a separate space dedicated to the business is required. Some licenses set requirements for floor area, equipment or dedicated office space.

• Whether the lease states a business purpose such as “office” use
• Whose name the lease will be in before incorporation, and how it will be transferred to the company afterwards
• Whether the layout meets the facility requirements of any license

Check licenses and FEFTA

Businesses such as selling alcoholic beverages, trading in second-hand goods, running a restaurant, recruitment and real estate transactions cannot operate without a permit or registration. The requirements often include office facilities or a dedicated responsible person, so check them before signing a lease.

Investment by foreign investors, including setting up a subsidiary, counts as inward direct investment under the Foreign Exchange and Foreign Trade Act (外為法, FEFTA). Investment in a designated sector requires prior notification, and as a rule it cannot be made until 30 days after the notification is accepted. Even in other sectors, a post-investment report may be required within 45 days. The system is explained in What is inward direct investment under FEFTA.

Stage 2: Incorporation procedures

Once the basics are settled, move on to incorporation. For a KK, the main steps are as follows.

1. Gather home-country documents: copies of passports, signature certificates or sworn statements, and, where a foreign corporation is investing, documents certifying its registered details, together with Japanese translations
2. Prepare the articles of incorporation (定款) and have them certified at a notary office (公証役場)
3. Pay in the capital (decide in advance which account will receive it)
4. Prepare the company seals (representative seal and bank seal)
5. Apply for registration (登記) of the incorporation at the Legal Affairs Bureau (法務局) with jurisdiction over the head office

Registration and license tax is paid on registration of the incorporation: 0.7% of capital for a KK (minimum ¥150,000) and 0.7% of capital for a GK (minimum ¥60,000). If a KK prepares its articles electronically, the ¥40,000 revenue stamp required for paper articles is not needed.

A KK can be incorporated even if all representative directors live overseas. However, opening a bank account and visa screening involve checks on the company’s set-up in Japan. Obtaining and translating home-country documents takes time, so start on them first.

Stage 3: Filings and bank account immediately after incorporation

Once registration is complete, work through the filings starting with those with the shortest deadlines. The main filings are as follows.

Labor insurance and employment insurance procedures apply when you hire employees. A company that pays directors’ remuneration must complete social insurance procedures even if it has only directors. For details of the filings, see Filings and deadlines after incorporation.

If a post-investment report under FEFTA is required, submit it through the Bank of Japan by the deadline. Opening a corporate bank account can involve lengthy screening, so apply soon after obtaining the certificate of registered matters.

Stage 4: Staffing and launch

Status of residence for managers and staff

To bring managers or staff from overseas, apply for a certificate of eligibility. People already living in Japan under another status apply for a change of status of residence. New activities cannot begin until permission is granted.

Preparing for hiring and HR

• Prepare employment contracts (written notices of working conditions)
• When hiring foreign nationals, check their residence card (在留カード) to confirm they are permitted to work, and file the notification on the employment status of foreign nationals with Hello Work
• Workplaces that regularly employ 10 or more workers must draw up work rules and file them with the labor standards inspection office

Plan ahead for the first financial statements and tax return

As a rule, corporation tax returns must be filed and the tax paid within two months of the day after the end of the fiscal year. A company with capital of less than ¥10 million is, as a rule, exempt from consumption tax at the start. It is safer to agree the first year-end and the treatment of consumption tax and the Qualified Invoice System (インボイス制度) with a certified tax accountant before incorporation.

Preparing for licenses and the start of trading

• Start operating only after obtaining the necessary permits and registrations
• If customers require qualified invoices, consider registering for consumption tax
• Put in place contract templates, an invoice format and an accounting function

Points that are easily overlooked

• Signing the lease too early: Companies sometimes sign a lease on premises that do not meet visa or license requirements. Check the permitted use and whether the space is self-contained before signing.
• Gaps in the business purpose: If a business requiring a license is missing from the purpose in the articles, a registration of the change of purpose is needed before applying.
• Missing the FEFTA check: In sectors that require prior notification, companies sometimes make the investment before filing.
• Blue-form return deadline: The deadline falls in the busy period immediately after incorporation. Filing it together with the notification of corporate establishment is the reliable approach.
• Home-country procedures: Where, for example, a company in mainland China is investing, outbound investment filings and foreign exchange procedures may also be required at home. Check these in parallel with the Japanese timetable.
• Records of the source of capital: Remittance records may be requested in visa screening and when opening a bank account. Keep them from the outset.

How TIMOA can help

When entering Japan, the company, status of residence, office, bank account, licenses and tax are all interlinked. Deciding the overall sequence at the outset prevents rework and lost time.

Together with partner judicial scriveners, administrative scriveners, certified tax accountants and labor and social security attorneys, TIMOA provides consistent support from choosing the entry structure through incorporation, post-incorporation filings, visa applications and preparing to open a bank account. For details, see our Japan Entry & Company Setup page.