Starting a business in Japan presents unique challenges and opportunities, and having a well-crafted business plan for a Japanese startup is more important than ever in 2026. As of October 16, 2025, Japan’s Business Manager Visa (経営・管理ビザ / Keiei Kanri Biza) requirements changed significantly, and your business plan is now at the center of those changes. Under the revised rules, a business plan submitted for visa purposes must be evaluated and certified by a qualified professional – you can no longer submit a self-prepared document alone and expect it to pass scrutiny.
That shift makes the quality of your business plan a legal matter, not just a strategic one. This guide walks you through the key components of a business plan tailored for Japan in 2026, with special attention to what immigration authorities, investors, and regulators now expect.
This is part of our series on incorporating a business in Japan. To learn more about setting up your company, check out our SmartStart incorporation service.
Key Takeaways
| Business Plan is Essential | A well-structured business plan is crucial for securing funding, complying with regulations, and attracting investors in Japan. |
| Key Components | Your business plan should include an executive summary, market analysis, product offerings, and financial projections. |
| Legal Requirements | A business plan is vital for securing necessary permits and visas, such as the Business Manager Visa. |
| Market Analysis & SWOT | Conduct a market analysis and a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats in the Japanese market. |
| Financial Projections | Provide detailed financial projections, including revenue, profit, cash flow, and break-even analysis, to ensure financial stability. |
| Location & Legal Structure | Choose an appropriate business structure (e.g., KK or GK) and location based on business needs and legal requirements. |
| Regulatory Compliance | Ensure your business complies with Japanese business laws, including labor laws, intellectual property, and licensing requirements. |
What Changed in October 2025: Business Plans and the Business Manager Visa
If you are a foreign entrepreneur planning to operate a business in Japan, the October 16, 2025 revisions to the Business Manager Visa (経営・管理ビザ) directly affect the business plan you need to prepare. These are the most significant changes to the visa framework in over a decade, and they raise the bar considerably for what immigration authorities expect.
The five key changes at a glance:
| Requirement | Before October 2025 | After October 2025 |
|---|---|---|
| Capital / Investment | ¥5 million OR 2+ employees (either/or) | ¥30 million AND 1+ full-time employee (both required) |
| Employment | 2+ employees OR capital (either/or) | 1 full-time employee with Japanese language ability (JLPT N2 or equivalent), either applicant or employee |
| Business Plan Review | Self-prepared plan accepted | Must be certified by a qualified expert (SME diagnostician, CPA, or tax accountant) |
| Management Experience | No formal requirement | 3+ years of management/business experience, OR a master’s degree or higher in a business-related field |
| Application Forms | Previous forms valid | New application forms required for applications filed on or after October 16, 2025 |
What “expert certification” means for your business plan. The revised standards require that a qualified professional review and confirm in writing that your business plan is specific, rational, and realistically achievable (具体性・合理性・実現可能性). The three qualified specialist types are Certified Management Consultants (中小企業診断士), Certified Public Accountants (公認会計士), and licensed Tax Accountants (税理士). This certification must accompany the plan at the time of submission – it cannot be added later.
Transitional rules. Applicants who submitted their Business Manager Visa application before October 16, 2025 will be assessed under the old standards. For existing visa holders who need to renew, the new standards will apply after October 16, 2028 (three years from the implementation date). During this three-year window, the Immigration Services Agency will consider your business’s current operating conditions and progress toward the new requirements when making renewal decisions.
If you need help navigating these changes – including identifying the right expert to certify your plan – SmartStart Japan offers a free consultation and has supported dozens of foreign entrepreneurs through the visa process.
Why You Need a Business Plan When Starting Your Business in Japan
A comprehensive business plan for a Japanese startup is essential as it outlines your vision, strategy, and operations. It is required for a Business Manager Visa, helps secure office space by demonstrating stability to landlords, and attracts investors by showcasing market analysis and unique selling points. Additionally, it ensures compliance with Japan’s regulatory requirements, securing permits and building trust with stakeholders.
Components of a Business Plan
1. Executive Summary
The executive summary introduces your business plan, outlining your business concept, mission, and objectives. It should briefly describe what your business will do, such as a tech startup in Japan focused on enhancing remote work productivity. Include your mission, like creating efficient, user-friendly tools, and set clear business objectives, such as launching the product in six months, reaching 10,000 users in the first year, and expanding internationally in three years.
2. Company Description
This section provides an in-depth look at your business structure and location – and it needs to be more precise in 2026 than it may have been in prior years, because visa reviewers will cross-check your company description against your capital structure and operational claims.
Legal structure. Your two main options as a foreign entrepreneur are the Kabushiki Kaisha (KK / 株式会社), which functions similarly to a corporation and is preferred by investors and banks, and the Godo Kaisha (GK / 合同会社), which is simpler and cheaper to establish but carries less institutional credibility. If you intend to apply for a Business Manager Visa, note that the ¥30 million capital requirement applies to your legal entity. A GK with ¥30 million in capital is technically valid, but in practice most entrepreneurs applying under the new rules are establishing KKs.
Capital. If Business Manager Visa eligibility is one of your goals, your company description must clearly state that your capitalization meets the ¥30 million threshold. Your business plan should include documentation of the capital’s source (e.g., personal savings, family loans, investor equity), as reviewers will look for evidence that the funds are legitimate and not borrowed for appearance purposes.
Location and facilities. The business address you register must be a genuine operational office – not a virtual office that functions only as a mailing address. The October 2025 reforms tightened scrutiny on office legitimacy as part of broader anti-paper-company measures. Choose your registered business location carefully and ensure the address is one where you can demonstrate actual business activity.
Note that virtual office arrangements and their eligibility vary by municipality and by the type of visa application. Confirm current requirements with your immigration specialist or contact us for guidance.
3. Market Analysis
Understanding your market is crucial for success. In the market analysis section, you should provide an industry analysis, staying informed about key industry trends and assessing the market size and growth potential. Conducting a SWOT analysis will help you identify your business’s strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors, while opportunities and threats are external.
An example given below is a SWOT analysis of Nintendo. The strengths and weaknesses are clearly laid out highlighting what the company does to succeed as well as what is holding the company back. In addition, opportunities for the company to grow are laid out alongside potential changes in the market that could hurt the company.
SWOT Analysis of Nintendo:
| Strengths: – Strong brand recognition – Innovation in gaming technology – Successful first-party titles – Extensive library – Strong intellectual property | Weaknesses: – Dependence on a few key franchises – Limited presence in mobile gaming – Fluctuating hardware sales – High development costs – Relatively high hardware prices |
| Opportunities: – Expansion into mobile gaming – Growth in the esports market – Virtual and augmented reality – Increased digital sales and services – Collaborations with other game studios and companies | Threats: – Intense competition from other consoles – Rapid technological changes – Piracy and counterfeit products – Regulatory challenges in different regions |
4. Organization and Management
Outline your organizational structure and management team clearly in this section – and in 2026, this section carries additional weight for Business Manager Visa purposes.
Organizational structure. You will need to decide whether a hierarchical or flat structure is the best fit for your business and define clear roles and responsibilities. A hierarchical structure provides clear lines of authority, while a flat structure promotes more open communication and faster decision-making. Both are valid; the choice should match your operational reality, not just look impressive on paper.
Management qualifications. Under the October 2025 Business Manager Visa revisions, the applicant must now demonstrate either 3 or more years of management or business experience, or hold a master’s degree or higher in a business-related field. Your organization and management section should directly address this by including a profile of the primary applicant that clearly documents relevant experience or educational credentials. Vague references to “extensive experience” are not sufficient – reviewers expect specific roles, dates, and company names.
Staffing and the employment requirement. The revised visa rules require at least one full-time employee (常勤職員) who is a Japanese national, permanent resident, or holds a qualifying spousal or long-term resident status. Employees on standard work visas (e.g., 技術・人文知識・国際業務) do not count toward this requirement. Your organization section should identify this employee by role, describe their responsibilities, and confirm their employment status. Additionally, either the applicant or this qualifying employee must have Japanese language ability at approximately JLPT N2 level or above.
Team profiles. For each key team member, include their relevant experience, qualifications, and the role they will play in the business. If you are launching without a full team in place, be transparent about your hiring timeline and include it in your planning section.
5. Product Line or Services
Describe your core offerings and unique selling points that set you apart. For example, if you offer eco-friendly cleaning products, highlight biodegradable, non-toxic cleaners, sustainable packaging, and natural ingredients safe for children and pets. Mention plans, like launching a refillable product line within the next year, to demonstrate continuous innovation.
6. Marketing and Sales Strategy
Develop a plan to attract and retain customers in the marketing and sales strategy section. Identify your target audience and outline your promotional strategies to reach them effectively. Additionally, describe your sales strategy, detailing the sales channels you will use and your pricing strategy to stay competitive in the market.
For example, if your business is like Starbucks launching a new line of specialty cold brew coffee, your marketing and sales strategy might involve targeting millennials and young professionals who value quality coffee experiences. Your promotional strategies could include influencer collaborations on Instagram, partnerships with trendy local cafes for pop-up events, and sponsoring community events. Your sales strategy might involve selling through Starbucks stores nationwide and via their mobile app for easy ordering and loyalty rewards.
To stay competitive, your pricing strategy could include premium pricing for unique flavors and limited-edition blends, occasional discounts on bulk purchases, and seasonal promotions to attract and retain customers.
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7. Funding Request
In the funding request section, outline your financial needs and how the funds will be used. In 2026, this section must be more precise than a general estimate – particularly if you are applying for a Business Manager Visa, where your stated capital must be verifiable.
Capital for visa compliance. If your goal is Business Manager Visa eligibility, your funding requirements must reflect the ¥30 million minimum capital threshold. In your business plan, spell out exactly how this capital is structured: how much comes from your own funds, how much from family or investors, and what documentation you can provide to prove the source. Immigration reviewers specifically watch for “show money” – funds borrowed temporarily to meet the threshold and then returned – which is treated as grounds for rejection.
Startup costs vs. capital. It is important to distinguish between registered capital (資本金 / Shihonkin) and actual startup expenditure. Your capital does not need to be spent all at once – it is paid into the company account and deployed over time. However, you must demonstrate a credible plan for how that capital will be deployed in a way that is consistent with the business you have described.
Other funding sources. If you are seeking external investment beyond your own capital, describe the funding sources and the terms. Japan has a growing venture ecosystem, particularly in Tokyo, and government-backed startup subsidies are available through programs like the SmartBoost service at SmartStart Japan. Subsidies and soft loans from local governments or METI can complement your capital structure – but they cannot be counted toward the ¥30 million capitalization requirement for visa purposes.
Investment milestones. Include clear milestones tied to your funding, such as when you expect to break even, when you plan to hire additional staff, or when you anticipate seeking follow-on investment.
8. Financial Projections
Provide detailed financial forecasts in this section. In 2026, these projections are not just internal planning tools – if you are applying for a Business Manager Visa, they will be reviewed by a qualified expert who must certify that your numbers are specific, rational, and achievable.
Revenue model. Identify your revenue streams and pricing model with enough specificity that an outside reviewer can evaluate them. Vague statements like “we expect to grow revenue through B2B sales” are insufficient. Instead, state your target customer segments, average deal size, expected sales volume, and how you arrived at those figures.
Profit and loss projections. Provide a projected income statement covering at least the first three years. Include expected revenue, cost of goods sold (where applicable), operating expenses, and projected net profit or loss by period. Be realistic – reviewers are more likely to flag overly optimistic projections than conservative ones.
Cash flow statement. Show your expected cash inflows and outflows on a monthly or quarterly basis for the first year, then annually thereafter. Include a starting cash balance (your paid-in capital), anticipated revenue receipts, and all operating costs. This is often the section that separates credible plans from wishful thinking.
Break-even analysis. Calculate your break-even point based on your fixed costs, variable costs, and projected average revenue per unit or transaction. State clearly when you expect the business to reach monthly cash-flow positivity.
Implementation timeline. Include a schedule of key milestones: company registration, office setup, hiring your first employee, acquiring licenses, initial sales, and so on. This timeline should be cross-referenced with your cash flow statement to confirm your capital can sustain the business through to profitability.
Legal Considerations and Regulations
A business plan is crucial for legal compliance in Japan, and in 2026, the connection between your business plan and your legal standing is tighter than ever. Adhering to Japanese business laws and ensuring all necessary documentation is in order are fundamental steps before you begin operations.
Business Manager Visa requirements. A comprehensive and professionally certified business plan is now a mandatory submission document for the Business Manager Visa. The plan must demonstrate financial stability and viability, and must be accompanied by a written evaluation from a Certified Management Consultant (中小企業診断士), CPA (公認会計士), or Tax Accountant (税理士) confirming the plan is feasible. For a full breakdown of the October 2025 reforms, see the section above on what changed.
Legal entity formation. A detailed business plan is essential when establishing structures like a Kabushiki Kaisha or Godo Kaisha. The plan should clearly outline your business operations, capital structure, and organizational setup.
Tax planning. Financial projections in your business plan should account for Japan’s corporate tax obligations. At the federal level, the effective corporate tax rate for SMEs on income up to ¥8 million is approximately 23-24%, with higher rates above that threshold. Local business taxes and inhabitant taxes add to this burden. Consult a licensed tax accountant (税理士) early to ensure your projections account for your actual tax obligations.
Business Registration Process
Registering a company in Japan involves several steps, starting with initial preparations such as choosing a name, creating a seal, and securing an office address. Next, you will file the articles of incorporation and complete the registration process with notary services. Understanding the expected timeframes and costs associated with registration is important for planning purposes.
Licensing and Permits
Different types of licenses may be required depending on your industry. You will need to apply for industry-specific licenses and general business permits, ensuring that you meet all documentation requirements. Understanding the processing times and fees involved will help you plan accordingly.
Intellectual Property Protection
Protecting your intellectual property is vital to business success. Registered trademarks and patents will safeguard your brand and inventions, while maintaining and enforcing these protections is crucial for ongoing security. Additionally, protecting copyrights and trade secrets through effective strategies will help safeguard your creative works, and knowing the legal recourse options available is essential for addressing any infringements.
Labor Laws and Employment Regulations
Compliance with labor laws and employment regulations is essential when hiring employees. Ensure that employment contracts are in place and that work visas and permits are secured for foreign employees. Understanding employee rights and benefits, including working hours, conditions, social insurance, and benefits, will help you create a supportive work environment.
Conclusion
Starting a business in Japan can be a rewarding endeavor with the right preparation. A comprehensive business plan for a Japanese startup is essential for navigating the unique challenges and opportunities of the Japanese market. By following this guide, aspiring entrepreneurs can lay a solid foundation for success. By following this guide, aspiring entrepreneurs can lay a solid foundation for success. Thorough research, detailed planning, and adherence to local regulations are key to your startup’s success in Japan.
