Methods and Procedures for Foreigners to Establish a Limited Liability Company in Japan

For foreigners considering starting a business in Japan, the Limited Liability Company (LLC) is recognized as an attractive option. This corporate form is personalityized by its flexible management structure and relatively low establishment costs, and has seen an increasing trend in its number of formations in recent years. The LLC, established under the Japanese Companies Act, is a relatively new corporate entity introduced with the revision of the Companies Act in 2006 (Heisei 18). It is modeled after the American LLC and fundamentally features the ‘unity of ownership and management,’ where investors are both the owners and the managers of the company.

Since its introduction, the LLC has steadily increased in number, recording over 33,000 formations in the year 2020. This upward trend indicates a growing demand in Japanese society for more flexible and cost-efficient corporate forms. The personalityistics of the LLC, such as rapid decision-making, limited liability for all members, and low establishment costs, are particularly attractive to small businesses and startups. For foreign entrepreneurs, these features can be significant advantages in reducing barriers to entry into the Japanese market.

Furthermore, the fact that global corporations like Apple, Google, and Amazon have adopted the LLC form for their Japanese entities suggests that the perceived ‘lower social credibility’ of LLCs does not uniformly translate into a disadvantage across all business models and markets. For companies with established brand power, those engaged in B2B transactions, or businesses where the end consumers do not directly consider the corporate form, the internal flexibility and cost benefits offered by an LLC can outweigh concerns about external credibility, becoming a strategic choice. This becomes an important criterion for foreign entrepreneurs when selecting an LLC in light of their business model.

This article provides a detailed explanation, based on Japanese legal provisions, of the concrete methods for establishing an LLC in Japan, the legal requirements, and the practical challenges that foreigners may face, along with their solutions. In particular, it addresses the requirements for obtaining the ‘Business Manager’ visa and its coordination with the company establishment process, hoping that this guide will assist you in smoothly starting your business in Japan.

What is a Japanese LLC? Legal Definitions and Comparisons with Joint-Stock Companies

The Legal Definition and Characteristics of a Japanese LLC (Godo Kaisha)

A Japanese LLC, known as a “Godo Kaisha,” is clearly defined as a type of “interest company” under Japanese Company Law. The most prominent feature of this corporate form is the principle of “unity of ownership and management.” In other words, all “members” who invest in a Godo Kaisha are simultaneously the owners of the company and, in principle, are in a position to manage the company’s operations. The term “member” here differs from “regular employee,” which generally refers to an employee; it signifies an individual who invests in and becomes an owner of the company.

There are mainly three types of members: executive members, representative members, and executive officers. Executive members are those who have the authority to actually execute the company’s operations. While all members in principle have the right to execute operations, the articles of incorporation can designate specific members as executive members. Executive members are equivalent to directors of a stock company and are responsible for the company’s day-to-day management. Representative members are selected from among the executive members and have the authority to represent the company. Corresponding to the representative director of a stock company, they play the role of the company’s face, concluding contracts and litigating on behalf of the company. Representative members can be one or more individuals, and their names and addresses are registered in the registry. Although all members of a Godo Kaisha have the principle of representative and executive rights, designating specific members as representative members is common to avoid external confusion and decision-making discrepancies. An executive officer refers to an individual who actually executes the business on behalf of a corporate executive member or representative member. No special qualifications are required to become an executive officer, and it is possible to appoint a corporate officer, employee, or an external third party. The names and addresses of the executive officers of the representative members are registered. A Godo Kaisha allows for a corporation to become a “member” (investor), “executive member,” or “representative member,” which is not permitted in a stock company. This personalityistic provides great flexibility, especially when a foreign parent company wants to establish a subsidiary in Japan and manage it directly. For example, a foreign parent company can become a representative member of a Japanese LLC, and an officer of the parent company can be appointed as an executive officer, simplifying the governance structure of the entire group.

All members of a Godo Kaisha have “indirect limited liability.” This means that members are only liable within the amount they have invested in the company, and even if the company’s debts exceed the investment amount, members are not obligated to make additional repayments from their personal assets. This scope of liability is similar to that of shareholders in a stock company and is a significant advantage for entrepreneurs as it limits business risks.

Another personalityistic of a Godo Kaisha is the high degree of freedom in internal governance. Unlike a stock company, it is not legally required to have strict institutional designs such as a general shareholders’ meeting or a board of directors, and company decision-making can be flexibly determined by the articles of incorporation. This unity of ownership and management significantly simplifies the decision-making process, enabling swift decisions and a high degree of management freedom. Since the owners, who are members, directly manage the business, there is no need for a multi-layered approval process. Additionally, a Godo Kaisha is not obligated to announce financial statements, and the term of office for officers can be set without limit, allowing for reduced ongoing running costs such as financial announcement fees and officer change registration fees. The non-disclosure of financial information can be an important advantage for small-scale businesses or entrepreneurs who prioritize confidentiality, as it can provide competitive superiority and privacy protection.

The flexibility of a Godo Kaisha to appoint multiple representative members is particularly effective when launching a business with multiple foreign partners or when the business spans various fields. For instance, partners with different nationalities or areas of expertise can each become representative members, sharing responsibilities for specific business areas or regions, which can make the decision-making process smoother. Such flexible role-sharing is important in optimizing internal governance and maximizing each partner’s expertise in international business expansion.

The Role and Responsibilities of ‘Members’ in a Japanese LLC (Limited Liability Company)

The Definition and Types of “Members” in a Japanese LLC

In the context of a Japanese Limited Liability Company (LLC), the term “member” differs from the general term “employee” as it refers to individuals who invest in the company and become its owners. In an LLC, all investors inherently have the rights and obligations to be involved in the company’s management.  

There are primarily three types of members: executive members, representative members, and executive officers. Executive members are those who have the authority to actually execute the company’s operations. While all members generally have the right to execute business, the articles of incorporation can designate specific members as executive members. Executive members are equivalent to directors of a corporation and are responsible for the company’s day-to-day operations. Representative members are selected from among the executive members and have the authority to represent the company. Corresponding to the representative director of a corporation, they play the role of the company’s face, handling external contracts, litigation, and other representative duties. Representative members can be one or more individuals, and their names and addresses are recorded in the registry. Although it is a principle in an LLC for all members to have representative and executive rights, designating specific members as representative members is common to avoid external confusion and decision-making discrepancies that could arise if all members exercised representative rights. An executive officer refers to an individual who actually executes the business on behalf of a corporate member that is an executive member or a representative member. No special qualifications are required to become an executive officer, and it is possible to appoint a corporate officer, employee, or an external third party. The names and addresses of the executive officers of representative members are registered. An LLC allows for a corporation to become a “member” (investor), “executive member,” or “representative member,” which is not permitted in a corporation. This personalityistic provides significant flexibility, especially when a foreign parent company wants to establish a subsidiary in Japan and manage it directly. For example, a foreign parent company can become a representative member of a Japanese LLC, and an officer of the parent company can be appointed as an executive officer, simplifying the governance structure of the entire group.  

The flexibility of a Japanese LLC to appoint multiple representative members is particularly effective when launching a business with multiple foreign partners or when the business spans a wide range of fields. For instance, partners with different nationalities or areas of expertise can each become representative members, sharing responsibilities for specific business areas or regions, which can make the decision-making process smoother. Such flexible role distribution is important in optimizing internal governance and maximizing each partner’s expertise in international business expansion.  

Duties and Responsibilities Imposed on Members of a Japanese LLC

Members of a Japanese Limited Liability Company (LLC) bear “limited liability,” which means they are responsible for the company’s debts only up to the amount of their capital contribution. This ensures that, even in the event of the company’s bankruptcy, the personal assets of the members are protected from the company’s liabilities.

However, members who have the authority to execute business, such as “executive members” or “representative members,” are subject to specific duties and responsibilities similar to those of directors in a stock company. These include the duty of care and loyalty, the duty to report, the duty to avoid conflicts of interest, restrictions on self-dealing transactions, and liability for damages. The duty of care and loyalty requires members to manage the company’s affairs carefully as a prudent manager, to comply with laws and the articles of incorporation, and to perform their duties faithfully for the company. These duties cannot be waived by the articles of incorporation. The duty to report obliges members to report the status of their business execution upon request from other members and to report the progress and results promptly after the completion of their duties. This duty can be modified by the articles of incorporation. The duty to avoid conflicts of interest prohibits members from engaging in the same type of business as the company or from transacting with the company without the consent of all other members. Violating this provision may lead to the presumption that any profits gained are damages incurred by the company. Restrictions on self-dealing transactions require the approval of a majority of the members other than the executive members when engaging in transactions that conflict with the interests of the company, such as when the LLC enters into a transaction with an executive member or guarantees the debts of an executive member. These restrictions can also be relaxed or waived by the articles of incorporation. Liability for damages means that if executive members neglect their duties and cause damage to the LLC, they are jointly responsible for compensating for the damage. In cases of malice or gross negligence, they may also be liable for damages to third parties.

Members without executive authority are not subject to these heavy duties and responsibilities, so those who wish to contribute capital only should consider the option of not becoming executive members. The flexibility in the roles of members allows foreign investors to participate in business ventures in Japan without incurring the legal obligations associated with active management involvement, remaining solely as capital providers. This is particularly important for foreign investors from a risk management perspective.

The fact that the articles of incorporation can modify or eliminate specific duties such as the duty to report, the duty to avoid conflicts of interest, and restrictions on self-dealing transactions highlights the significant role of the articles of incorporation in the internal governance of an LLC. This means that drafting the articles of incorporation is not merely a legal procedure but an opportunity for foreign entrepreneurs to strategically design the internal rules of the company to match the personalityistics of their business, their risk tolerance, and the agreements among partners. Being able to construct a unique governance structure without being bound by default legal provisions is crucial for preventing potential disputes and achieving smoother business operations.

Specific Steps and Legal Requirements for Establishing a Limited Liability Company (LLC) in Japan

Determining Basic Company Information

The first step in establishing a Limited Liability Company (LLC) in Japan is to determine the company’s basic information. This information is crucial as it will be recorded in the articles of incorporation and registration documents, and therefore requires careful consideration.  

The information to be decided includes the company’s trade name, which must include the words “Limited Liability Company”, the specific business activities the company will engage in which must be legal, profitable, and clear, as the company cannot engage in activities beyond those stated in the articles of incorporation, the location of the company’s principal office which is the legal address, the amount of capital contributed by the members, known as the capital stock (especially for those considering obtaining the “Business Manager” visa, a minimum capital of 5 million yen is desirable), the full names and addresses of all members contributing to the company (which must be accurately recorded as per the seal registration certificate or signature certificate), the fact that all members of the LLC have limited liability, which must be clearly stated in the articles of incorporation, the purpose and amount of each member’s contribution, which in the case of monetary contributions should be recorded as “¥XX”, and the date of establishment, which is the date the application for registration is filed with the Legal Affairs Bureau. Deciding on the business purpose is not merely a formal requirement; it is a significant legal constraint that can affect the company’s future business development. Considering the potential for future business expansion and diversification, it is wise to comprehensively include all related business purposes from the outset to avoid the hassle and expense of later amendments to the articles of incorporation. The determination of the capital amount is not only about securing business funds but also fulfills the requirements for visa acquisition, making it an especially important consideration for foreign entrepreneurs.  

Creation of Articles of Incorporation and Required Entries Under Japanese Law

The Articles of Incorporation are an extremely important document, often referred to as the ‘constitution of a company,’ as they establish the fundamental rules for the organization’s activities. To establish a Japanese Limited Liability Company (LLC), all prospective members must create the Articles of Incorporation and sign or affix their name and seal to it.

There are three types of required entries in the Articles of Incorporation: mandatory, optional, and permissive. Mandatory entries must be included in the Articles; without them, the document itself is invalid. These include the company’s purpose, trade name, location of the principal office, names and addresses of the members, a statement that all members are limited liability members, and the purpose and amount of each member’s capital contribution. Optional entries are those that, if not included, do not invalidate the Articles, but their effectiveness will not be recognized. Examples include the requirements for the transfer of shares, the method of decision-making when there are multiple executive members, the method of appointing a representative member, the duration of the company, and the reasons for dissolution. It is strongly recommended to clearly define these items at the time of establishment to avoid future disputes among members. In particular, rules regarding the transfer of members’ shares and the decision-making process when there are multiple members are directly linked to the stability and smooth operation of the business, thus requiring careful consideration. Permissive entries can be freely determined as long as they do not violate the Companies Act. These include the fiscal year (accounting period), method of public notice, provisions for profit distribution, the ratio of profit and loss distribution among members, and compensation for executive members. By appropriately utilizing these permissive provisions, foreign entrepreneurs can create more flexible company management rules that align with their business models and international business practices.

When creating the Articles of Incorporation, it is necessary to ensure that the names and addresses of the members match exactly with those on the certificate of seal impression (or certificate of signature), and careful attention must be paid to the method of notation. Even minor errors in notation can lead to delays in procedures and potential legal issues later on. Unlike a joint-stock company, an LLC in Japan does not require notarization of the Articles of Incorporation by a notary public. This not only helps to reduce establishment costs but also simplifies the procedures. While a paper version of the Articles requires a 40,000 yen revenue stamp, using electronic Articles eliminates this cost, further reducing the establishment expenses.

Capital Contribution Payment

After the creation of the Articles of Incorporation, individuals who wish to become members of a Japanese LLC (Godo Kaisha) must pay the full amount of their monetary contribution or provide non-monetary assets before applying for the company’s registration .  

The destination for the payment of the capital contribution is a regular savings account within Japan, held by the individual who will become the representative member . While an existing account can be used, even if it has a balance equal to or greater than the capital, each member must ensure to pay their set contribution into the representative’s account . When transferring funds, it is important to arrange for each member’s name to be recorded in the passbook so that it is clear who has paid and how much . The payment of the capital contribution must be made after the Articles of Incorporation have been created . Payments made before the creation of the Articles may result in the registration application not being accepted.  

Once the payment is complete, a “Payment Certificate” is created. This document certifies that the capital contribution has been paid and is stamped with the company’s representative seal by the representative member at the time of establishment . Typically, copies of the passbook cover, the first page, and the page where the payment can be verified are attached .  

The obligation to use “a bank account within Japan held by the individual who will become the representative member” for the payment of capital presents a significant practical challenge, especially for foreign entrepreneurs living abroad . This is because, in many cases, opening a personal bank account in Japan requires having a residence in the country or proof of a certain period of stay . To overcome this challenge, a common and practical solution is to enlist the cooperation of a resident of Japan, such as a Japanese citizen or permanent resident, to act as an initiator or officer and use their personal account for the capital payment .  

Application for Company Registration at the Legal Affairs Bureau in Japan

In Japan, a Limited Liability Company (LLC) is legally established by registering its incorporation at the Legal Affairs Bureau that has jurisdiction over the location of its head office. The date of the registration application becomes the official date of the company’s establishment.

The registration application requires several documents: the LLC incorporation registration application form, articles of incorporation, a document determining the representative member, head office location, and capital, the representative member’s letter of acceptance, a document proving that capital has been paid in (payment certificate), a CD-R or document recording the matters to be registered, a revenue stamp affixed mount, and a seal registration certificate (notification of seal impression).

The application for registration is made by the person who should represent the company (usually the representative member). It can be submitted directly to the Legal Affairs Bureau, by mail, or online.

The registration application process is critical in terms of the number of documents submitted and the accuracy of their contents. Even minor errors or omissions can result in the registration being denied, significantly delaying the process. This can be particularly challenging for foreign entrepreneurs who may find Japan’s complex administrative procedures and specialized terminology difficult to understand, ensuring the accuracy of document preparation is a significant hurdle.

Following the 2021 (Reiwa 3) revision of the Commercial Registration Regulations, the submission of a seal to the registry office when applying online has become optional. This means that the physical stamping and submission of a seal, previously required for paper applications, is no longer necessary, potentially reducing the burden of procedures for foreign entrepreneurs accustomed to digitized processes. However, when applying on paper, the stamping of a seal is still required, so appropriate preparation is necessary depending on the method of application.

Once the registration is complete, you can obtain a certificate of registered matters (such as a certificate of all historical matters), which allows you to commence activities as a corporation. This completed registration not only signifies that the company has been legally established but also serves as a prerequisite for proceeding with applications for a “Business Manager” visa.

Costs Associated with Establishing a Company

The statutory costs for establishing a Limited Liability Company (LLC) in Japan generally range from 60,000 to 100,000 yen. This is significantly lower compared to the establishment costs for a joint-stock company (approximately 220,000 to 250,000 yen).

The main statutory costs are as follows. The registration and license tax, which is a tax paid to the national government at the time of registration procedures at the Legal Affairs Bureau, is either 0.7% of the capital or 60,000 yen, whichever is higher. The 0.7% exceeds 60,000 yen when the capital is over approximately 8.57 million yen. If you use electronic articles of incorporation, the 40,000 yen stamp duty for paper articles of incorporation is not required. By choosing electronic articles of incorporation, you can save this 40,000 yen, making it possible to keep the total cost of establishing an LLC to a minimum of 60,000 yen.

In addition, there will be costs for creating a corporate seal and fees for issuing various certificates.

If you entrust the procedures to professionals (judicial scriveners, administrative scriveners, tax accountants, etc.), additional fees for these experts will be incurred. While these professional fees increase the total cost of establishment, considering the language barriers and the complexity of the Japanese legal system that foreign entrepreneurs face, these expenses can be seen as a crucial investment to ensure accuracy and efficiency in the procedures and certainty in obtaining a visa.

Furthermore, by utilizing the “Specific Business Startup Support Projects” promoted by various municipalities, it may be possible to reduce the registration and license tax by half (to a minimum of 30,000 yen for an LLC). Foreign entrepreneurs can further reduce initial costs by actively gathering information and considering the use of such support systems offered by the municipality of their intended residence or business location. These support projects not only offer financial benefits but may also provide opportunities that are helpful for business operations after startup, such as assistance in formulating business plans and building networks with professionals.

Practical Challenges and Solutions for Foreigners Establishing a Limited Liability Company in Japan

When foreigners establish a Limited Liability Company (LLC) in Japan, they may encounter several practical challenges stemming from Japan’s unique systems, business customs, and residency status requirements. Understanding these challenges in advance and implementing appropriate solutions is essential for a smooth company formation and business launch.

Securing a Japanese Address and Bank Account for Company Formation in Japan

When foreigners establish a company in Japan, securing a domestic address and bank account becomes a significant challenge, especially for those residing overseas. For personal bank accounts, a Japanese bank account in the name of the individual who will serve as the representative director is necessary for the payment of capital funds. However, foreigners without a Japanese address or those who have not stayed in Japan for more than six months often face difficulties in opening a personal account. This is because financial institutions strictly verify the identity of the account holder and the actual business status at the time of account opening, from the perspective of anti-money laundering and counter-terrorism financing measures. These requirements pose a substantial barrier for foreign entrepreneurs at the stage of capital contribution, which is a prerequisite for company formation. As for corporate accounts, they are essential for business activities after the establishment of the company, but the review process tends to be stricter for foreign representatives compared to Japanese representatives, making it more challenging to open an account. A notice from the National Police Agency (March 2012 (Heisei 24)) has led to stricter scrutiny of corporate accounts, and financial institutions are often overly cautious.

Possible solutions to these challenges include the following methods. Utilizing collaborators, such as trustworthy Japanese residents or permanent residents, as initiators or officers, and using their personal accounts for the payment of capital funds is the most common and practical solution. This allows foreign entrepreneurs to proceed with company formation procedures even if they do not reside in Japan. This method is not only a procedural convenience but also crucial in building a local network and support system for business expansion in Japan. Another option is to come to Japan on a short-term visa and open an account, but this method also has high hurdles for account opening and is not a guaranteed solution. Utilizing an executive officer, in the case where a foreign corporation becomes the representative director of a Japanese LLC, appointing an executive officer with a Japanese address can fulfill the registration requirements. As an alternative service to traditional bank account opening, options such as Wise Business multi-currency account services can be considered when traditional bank account opening is difficult. While these services are convenient for international transfers and multi-currency transactions, a Japanese bank account is still preferred for obtaining loans within Japan or when dealing with business partners who value high creditworthiness.

Certificate of Seal Registration and Certificate of Signature Verification in Japan

In Japan, when applying for company registration, a Certificate of Seal Registration for the representative director is required.  

For foreign residents living in Japan, if they have a residence card and have registered their seal, they can obtain a Certificate of Seal Registration at the municipal office just like Japanese citizens. However, foreign residents living abroad who do not have a residence card in Japan cannot obtain a Certificate of Seal Registration. In such cases, a “Certificate of Signature Verification” issued by an official authority (such as a consulate) in their home country can be used as an alternative to the Certificate of Seal Registration. This demonstrates the flexibility of the Japanese legal system in accommodating international business practices. The Certificate of Signature Verification is required for important procedures such as authentication of articles of incorporation (not required for an LLC but necessary for a joint-stock company), at the time of company establishment registration, and during registration of officer changes. A Japanese translation must be attached to the Certificate of Signature Verification if it is created in a foreign language. The source of the Certificate of Signature Verification varies depending on whether you are in Japan, your home country, or a third country, so it is necessary to confirm this in advance.  

Although there is an alternative method with the Certificate of Signature Verification, the process of obtaining documents from foreign public institutions and preparing their Japanese translations is a time-consuming and complex procedure for foreign entrepreneurs. To ensure the accuracy and speed of this process, the advice of experts is indispensable.

Securing a Business Location

During the company incorporation process, and especially when applying for the “Business Manager” visa, it is essential to secure an appropriate business location (office) within Japan.  

As a tangible business location, virtual offices are often not recognized as having a physical presence and may not be accepted for visa applications, so caution is necessary. Home offices are also generally not accepted, and an office with a “business use” rental contract that is clearly independent from a home is required. This is because the Immigration Bureau strictly examines the actual business operations and their continuity. Properties with short-term contracts or month-to-month agreements may not be recognized as business locations. The rental contract must clearly state that the intended use is for “business purposes.” As a challenge and solution, it can be difficult for foreigners without a residence in Japan to sign a real estate lease on their own, so it is a safe solution to have a collaborator with a residence in Japan (Japanese nationals or permanent residents) handle the real estate contract. Securing a business location is one of the interrelated practical challenges that foreign entrepreneurs face when starting a business in Japan, similar to opening a bank account and obtaining a certificate of registered seal, and requires a comprehensive solution.  

Document Creation and Translation in Japanese

In the process of establishing a company or applying for a visa in Japan, many of the required documents must be created in Japanese or, if created in a foreign language, must be accompanied by a Japanese translation.  

Regarding registration applications, the application for company registration can be made in either Japanese or a foreign language, but if it is made in a foreign language, a Japanese translation is necessary. For attached documents, such as articles of incorporation or signature certificates, a Japanese translation is generally required to be attached if they are created in a foreign language. One challenge is that for foreigners who are not proficient in Japanese, understanding and creating a vast amount of documents accurately, as well as translating specialized terms, can be a significant burden. Inaccurate translations or omissions can lead to visa denials or delays in procedures. The language barrier is not just a communication issue; it can be a direct risk factor in the creation of documents where legal accuracy is required. As a solution, it is strongly recommended to seek the support of professionals (administrative scriveners, judicial scriveners, translation services) for accurate and smooth procedures. Especially since translated documents may require a ‘Certificate of Translation’ where the translator swears to the faithful translation of the original, or ‘notarization’ by a notary public, not just translation skills but also specialized knowledge understanding the legal requirements is essential.  

Acquiring the “Business Manager” Visa Under Japanese Immigration Law

Key Requirements for Obtaining a Business Management Visa in Japan

In order for foreigners to manage a company in Japan, it is generally necessary to obtain a “Business Manager” visa. This visa requires a rigorous evaluation of the business’s stability and continuity in Japan, as well as the applicant’s managerial capabilities.  

The main requirements are as follows. As for securing a business office, it is required to have a physical office space within Japan where business activities are continuously conducted. Virtual offices or home offices are generally not accepted. This is an extremely important requirement to prove the actual existence of the business. As for the scale of the business, one of the following criteria must be met: having a capital or total investment amount of at least 5 million yen, employing two or more full-time staff residing in Japan, or being recognized as equivalent to the aforementioned scale. These business scale requirements are not merely financial standards but serve as important indicators for assessing the health and sustainability of the business. Regarding the stability and continuity of the business, it is necessary to clearly demonstrate in a detailed “business plan” that the business has a stable and ongoing prospect. The business plan must concretely describe the business content, management plan, and funding plan, logically demonstrating feasibility and profitability.  

Concerning the applicant’s managerial capabilities and experience, the applicant must have more than three years of experience in managing or administering a business (including periods of studying business administration at graduate school). However, this experience requirement is not absolute; in cases where an investment of more than 5 million yen is made, it is possible to obtain a visa even without educational background or practical experience in management. Even if the experience is insufficient, actively proving that you will engage in management activities as a business manager can increase the possibility of obtaining a visa. This means that the applicant’s sincere desire for the business and a concrete plan for its success are given importance. Regarding remuneration, it is necessary to receive compensation that is at least equivalent to what a Japanese national would receive for the same job.  

The requirements for the “Business Manager” visa are interrelated; for example, the amount of capital is an indicator of the business scale, and the business plan serves as a foundation for comprehensively evaluating the business’s stability and continuity, the security of the business office, and the applicant’s managerial capabilities. Any deficiency in these requirements can negatively impact the overall application and may lead to the denial of the visa.  

Coordination of LLC Establishment and Visa Application in Japan

The establishment of a Limited Liability Company (LLC) is a prerequisite for obtaining a “Business Manager” visa in Japan. Only after the company is legally established, the capital is paid in, and the business location is secured, can preparations for the visa application begin.

Regarding the timing of establishment and visa application, the company registration process and visa application are closely linked. Without the completion of the company registration, a Certificate of Registered Matters cannot be obtained, and the visa application cannot proceed. Any errors or delays in the company establishment process can directly affect the visa application schedule and increase the risk of delaying the overall business start-up plan. Many foreigners first stay in Japan under existing residency statuses such as “Student” or “Engineer/Specialist in Humanities/International Services” while advancing their company establishment, and then apply for a change to a “Business Manager” visa. As for the risks and countermeasures of visa denial, the main cases of visa application denial include deficiencies in the business plan, doubts about the applicant’s background or abilities, inconsistencies or deficiencies in submitted documents, and issues with past residency status. In particular, if there are inconsistencies between submitted documents or if false declarations are suspected, the risk of visa denial significantly increases. Regarding the role of professionals, the company establishment and visa application procedures are complex, and there is also the barrier of the Japanese language, so the support of professionals (judicial scriveners, administrative scriveners, attorneys) is key to success. Professionals help reduce the risk of denial and support smooth procedures through accurate document preparation, assistance in formulating viable business plans, and smooth communication with the Immigration Bureau. Since the establishment of a company and visa application are interdependent processes, consistent support from professionals who are well-versed in both fields leads to an efficient and certain business start-up.

Summary: Support Provided by Monolith Law Office

Establishing a Limited Liability Company (LLC) in Japan offers an attractive opportunity for foreign entrepreneurs due to its flexibility and cost efficiency. However, overcoming Japan’s complex legal and administrative procedures, as well as practical challenges from company formation to obtaining a “Business Manager” visa, requires specialized knowledge and experience. In particular, there are unique challenges for foreigners, such as securing a domestic address and bank account in Japan, preparing a signature certificate in lieu of a seal registration certificate, and developing a detailed business plan for visa acquisition.

Monolith Law Office has a wealth of experience in providing legal services related to the content mentioned in this article to numerous clients within Japan. As a law firm with several English-speaking attorneys qualified in foreign jurisdictions, we deeply understand the unique challenges faced by foreign entrepreneurs. We provide strong support to ensure that you meet the legal requirements, overcome language barriers and cultural differences, and start your business in Japan smoothly.

From selecting the optimal corporate structure at the initial stage of company establishment to drafting articles of incorporation, filing for registration, and assisting with the acquisition of a “Business Manager” visa, we offer consistent support. We strive to create an environment where foreign entrepreneurs can focus on their business in Japan with peace of mind by efficiently navigating complex procedures and minimizing potential risks. If you are a foreign entrepreneur interested in starting a business in Japan, please consult with Monolith Law Office. We are committed to supporting the sure steps towards the success of your business.