Starting a Company in Japan with No Residency (2025 Guide)

Key Takeaways

Question	Answer (Short Summary)
Can non-residents start a company in Japan?	Yes. Since 2015, non-residents can set up a KK or GK. But owning a company doesn’t give you the right to work—visa required.
What are the company types available?	KK (joint-stock): more credibility, higher cost. GK (LLC): cheaper, easier, less prestige. Both allow 100% foreign ownership.
What’s the incorporation process?	1. Get Japanese address (virtual ok) 2. Draft Articles (KK needs notarization) 3. Deposit capital 4. Register at Legal Affairs Bureau (~2 weeks) 5. Get seal + certificate.
What does it cost to incorporate?	KK: ~¥240k. GK: ~¥100k. Add ¥100k–¥300k+ for translation, notary, legal help.
Does incorporating grant me a visa?	No. You need a Business Manager Visa (¥5M capital OR 2 hires + physical office). Takes 1–3 months via Certificate of Eligibility.

Legal Framework for Non-Resident Incorporation

Starting a Company in Japan with No Residency is entirely legal. Japanese law does not require founders or directors to be citizens or residents. Since March 16, 2015, Japan removed the rule that mandated at least one representative director to have a local address. Today, all directors and shareholders can reside overseas, and the company can still be legally incorporated. Learn more in this Incorporation Timeline Guide for Foreigners in Japan.

This pro-investment change (issued via Ministry of Justice notification in 2015) opened the door for foreign entrepreneurs to establish a Kabushiki Kaisha (KK) or Godo Kaisha (GK) without living in Japan.

That said, it’s crucial to distinguish incorporation rights vs. operational rights. Forming a KK or GK as a non-resident is legal, but it does not authorize you to work in Japan. Simply owning a Japanese company or naming yourself as a director does not bypass immigration law. If you wish to physically operate or manage the business in Japan, you must obtain an appropriate visa, typically a Business Manager Visa.

In practice, this means you can register the company remotely, but until you secure a long-term visa, you cannot engage in day-to-day business activities on the ground. For example, a foreign CEO on a tourist visa cannot legally sign contracts or run the office in Japan, they would need to switch to a Business Manager visa first.

Key laws and policies: Japan’s Companies Act provides the framework for incorporation and does not require incorporators or directors to be Japan residents. The 2015 policy change (MoJ Civil Affairs Bureau Notification No. 29) explicitly allows all representative directors to be non-resident. At the same time, immigration regulations (Immigration Control Act) require foreign nationals to obtain a work-permissible status (like the Business Manager visa) to actively run a business in Japan.

Government agencies like JETRO and the Ministry of Justice have published guidelines clarifying that non-residents may incorporate (with additional document requirements), but also emphasize visa compliance for those wishing to actually reside and work in Japan. In short, the legal framework supports foreign founders: you can own 100% of a Japanese company and be a director from abroad, but to come and manage it on-site you’ll need to go through the immigration process separately.

Corporate Structures Available to Non-Residents (KK vs. GK)

When incorporating in Japan, foreign entrepreneurs usually choose between two main corporate structures: Kabushiki Kaisha (KK) or Godo Kaisha (GK). Both are limited liability entities open to non-residents, but they differ in setup process, cost, governance, and market perception. Below is a comparison from a non-resident’s perspective:

Kabushiki Kaisha (KK) – Joint-Stock Company

Kabushiki Kaisha (KK) is the traditional form of corporation in Japan, analogous to a C-corporation or “Co., Ltd.” in other countries. KKs are highly common and generally seen as the most credible business structure in Japan. Many large firms and established businesses are KKs, which means that banks, clients, and partners often instinctively trust this form. For a foreign founder, choosing a KK can signal commitment and stability, which may help in business negotiations and hiring.

From a setup standpoint, a KK involves more formalities and slightly higher costs than a GK. Notably, Articles of Incorporation for a KK must be notarized by a Japanese notary public. This adds a procedural step (and a ¥30,000–¥50,000 notary fee) not required for a GK. KKs also incur a higher registration tax (at least ¥150,000) compared to GKs (¥60,000). Additionally, if you draft paper articles, a revenue stamp of ¥40,000 is required (though this stamp duty is waived if you file the articles electronically with a certified digital signature). You can see the full breakdown in our Japan Company Setup Costs Guide.

In terms of governance and complexity, a KK can be incorporated with a single director (no full board required for small companies) and one shareholder, so a solo foreign entrepreneur can fully own a KK. However, KKs are subject to stricter corporate governance rules under the Companies Act – for example, they must hold annual shareholder meetings and, if large, appoint statutory auditors, etc. For a small startup KK, these requirements are minimal, but still more than a GK’s. The trade-off for these formalities is that KKs carry prestige: they are the de facto choice for companies planning to scale, seek venture investment, or eventually go public. In summary, from a non-resident perspective, a KK offers maximum credibility and long-term flexibility (e.g. easy to transfer shares or raise capital), at the cost of a longer and pricier incorporation process.

Godo Kaisha (GK) – Limited Liability Company

Godo Kaisha (GK) is Japan’s version of a limited liability company (LLC), introduced in 2006. It’s a more contemporary structure that emphasizes simplicity and flexibility. For foreign entrepreneurs, the GK is appealing because it’s cheaper and faster to set up than a KK. No notary is required for GK formation – the Articles of Incorporation (much simpler than a KK’s) do not need notarization, which saves time and money. The government registration fee is also lower (a flat ¥60,000). In practice, many non-residents establishing a small venture or subsidiary choose the GK to avoid the red tape.

Another advantage is streamlined governance: GKs don’t need formal shareholder meetings or a board of directors. Owners of a GK are “members” (similar to LLC members) and can directly manage the company or appoint a managing member. This means fewer ongoing compliance burdens. All decisions can be made flexibly by the members, which is convenient if you are the sole foreign owner-manager.

However, GKs have some drawbacks to weigh. The biggest is perception: because the GK is newer and most Japanese businesses still use KK, a GK might be viewed as less prestigious or “small scale.” As one guide notes, a GK’s simpler image can be a disadvantage in business negotiations compared to a KK. Large corporate clients or traditional partners might prefer dealing with a KK. Additionally, a GK cannot issue stock shares, which limits how you raise equity; bringing in new investors is doable (by adding members or converting to KK later) but slightly less straightforward than a KK’s share issuance. If you anticipate rapid growth or venture capital funding, starting as a KK could smooth those paths.

In summary, from a non-resident perspective, GK is ideal for small teams, quick setup, and cost efficiency, whereas KK is better for signaling credibility and accommodating future investment. Both structures allow 100% foreign ownership and have limited liability protection. Many entrepreneurs start with a GK to get up and running, and some upgrade to a KK structure later if needed. It’s wise to consider your business goals: if you need to impress conservative stakeholders or plan an IPO, KK might be worth the extra effort; if you value ease, speed, and lower cost, GK is very attractive. Japan’s legal system supports either choice for non-resident founders, so you should choose based on practical needs.

Comparison of KK vs GK (from a non-resident viewpoint):

• Credibility: KK is the longstanding standard and lends more credibility in Japan’s market. GK is newer and may raise eyebrows with some partners, though it’s legally sound.
• Cost: KK costs significantly more to establish (see cost breakdown below) due to higher registration tax and notary fees. GK’s statutory costs are roughly half or less.
• Setup Time: A GK can be registered a bit faster since you skip notary scheduling. In many cases a GK incorporation can be completed in 2–4 weeks, whereas a KK may take 4–6 weeks. (The extra time for KK comes from preparing and notarizing the articles and possibly slightly more complex paperwork).
• Complexity: KKs have more formal requirements (e.g. creating share certificates, perhaps a company auditor depending on size, etc.). GKs are very straightforward – essentially an agreement between members filed with the registry. Non-resident paperwork (like signature certificates, etc.) are needed for both, but KK has a couple more documents (notarized articles, etc.).
• Reputation & Use Case: If your priority is market trust, bank relationships, or raising capital, the KK structure is advantageous. If your priority is speed, simplicity, and maintaining a small internal operation, the GK is a perfectly good choice. Notably, both KK and GK can sponsor visas and hire staff – immigration doesn’t prefer one over the other.

Step-by-Step Incorporation Procedure for Non-Residents

Starting a company in Japan as a non-resident involves several steps that mirror the standard incorporation process, with a few extra documents to accommodate your overseas status. Below is a step-by-step guide:

1. Secure a Registered Office Address in Japan:

Every KK or GK must have an official head office address in Japan at the time of registration. You do not need to rent a full physical office right away – a virtual office address is acceptable for incorporation purposes. Many foreign founders use virtual office services to obtain a legal mailing address (e.g. in Tokyo) without a lease. The address will be listed on the company registry and used for official communications.

Ensure you have permission to use the address and that someone can handle any mail (most virtual office providers offer mail forwarding).
Note: While a virtual address suffices to register the company, keep in mind that if you later apply for a Business Manager visa, immigration will require a dedicated physical office. For incorporation itself, a virtual address or sharing an address (with permission) is fine.

You may also need a Japanese phone number as a contact on certain forms, so plan for a phone line or a service that provides one.

2. Prepare the Articles of Incorporation:

Draft the Articles of Incorporation (定款, Teikan) in Japanese. This is the foundational document stating the company name, purpose, head office address, initial officers, capital, and other rules. If you’re incorporating a KK, the Articles must be prepared in the proper format and then notarized by a notary public in Japan before registration. For a GK, notarization is not required; you simply need to sign or stamp the Articles.

As a non-resident, you will likely work with a judicial scrivener or legal professional who can provide a template and ensure it meets all legal requirements. The Articles must be in Japanese (you can have an English version for reference, but the filing is done in Japanese). If you draft it yourself in English, it will need full translation for submission.

Notarization for KK:

If you form a KK, once the Articles draft is ready, arrange for notarization at a Japanese notary office. If you are not in Japan to attend, you can appoint a proxy (typically your scrivener or collaborator in Japan) via a Power of Attorney to present the document to the notary. The notary will check compliance and affix an official seal.
The standard notary fee is ¥50,000 (for capital above ¥0 but up to ¥30 million; slightly less for very small capital).

Stamp Tax Tip: Some founders opt for electronic Articles with e-signatures to save the ¥40,000 revenue stamp tax. However, using electronic Articles requires having a certified digital certificate, which most foreigners abroad do not possess. As a result, most non-residents choose paper Articles and pay the stamp duty.

For GKs, you can also avoid the ¥40,000 stamp by filing electronically, but again, the digital signature logistics often lead people to just use paper and stamps. See our GK Guide for details.

3. Obtain Required Personal Documents (for Non-Residents):

When the representative director or company founder is overseas, Japanese authorities require certain additional documents to verify identity and intent:

Signature Certificate (署名証明書 or サイン証明書): This is the substitute for the personal seal certificate that a Japan resident would provide. Since you don’t have a Japanese inkan seal registered, you must get an official certificate of your signature from a competent authority. Typically, this is obtained from the Japanese embassy/consulate in your home country or from a local notary public + apostille in your country of residence. The document basically certifies that “Person X at this address has this signature,” and it’s used to prove the authenticity of signatures on the incorporation paperwork.

If you are a Japanese national living abroad, you can get a “Consular signature certificate” at the embassy. If you are a foreign national, you will use a notarized affidavit from your own country (often called a Certificate of Signature). This must be prepared before submitting the registration. It will be attached to the application to satisfy the Legal Affairs Bureau that the application is legitimate. Along with this, prepare copies of your passport as additional ID if required.

Affidavit of Capital Payment (払込証明書): As a non-resident incorporator, you may be asked to sign a statement attesting that the required capital has been paid in. This is actually required of any KK incorporator (called the “certificate of full payment of capital” per Company Act Article 34). Essentially, the representative founder makes a document certifying that the subscription money was deposited into a bank. For non-residents, you will sign this (and likely attach your signature certificate to it to prove your signature’s validity).

Japanese Translations: Any document you provide that is in a foreign language (for example, your notarized signature certificate, or perhaps a certificate of incumbency if a foreign parent company is involved) must be accompanied by a Japanese translation. Ensure you get a professional or official translation, as it will be filed. Partial translations might be allowed for very long documents not directly relevant, but generally for incorporation it’s straightforward documents so full translation is expected.

These documents should be ready by the time you or your proxy file the application. They often cause delays if not prepared in advance (e.g., waiting for an apostille can take time), so start obtaining them early in the process.

4. Deposit the Capital:

Japan requires that you demonstrate the initial capital has been paid into a bank account before registration. There is no minimum capital for incorporation (legally even JPY 1 is OK), except if you plan to apply for a visa later you’d typically use ¥5,000,000 to meet visa criteria. The key is to get proof of deposit. As a non-resident without a Japanese bank account, you have a few options:

Use a Proxy’s Bank Account in Japan: The most common solution is to have a resident co-founder, lawyer, or trusted person temporarily receive the capital into their Japanese bank account on your behalf. For example, you (from abroad) could wire your intended capital amount to your attorney’s client account in Japan. That account’s passbook or statement showing the deposit will serve as evidence. The attorney will then issue the necessary payment certificate for the registration. This method is accepted by the Legal Affairs Bureau – they just need the combination of (a) a payment certificate document signed by the representative director confirming the amount paid, and (b) a bank transaction evidence (copy of bank book or transaction receipt) that clearly shows the funds, date, and account name. Learn more about this in our Japan Incorporation Checklist.

Use a Foreign Bank’s Statement: It is also possible to deposit the capital in your own overseas bank account, then use the overseas bank statement as proof. The rule is that the bank documentation must show the name of the bank (and branch), the name of the account holder, and the deposit of the funds for incorporation. If using a foreign bank, you should include an explanation of the exchange rate and convert the amount to yen to show it meets the stated capital. Japanese authorities can accept certain foreign bank documents, especially if the bank has international recognition. However, you will need to provide a Japanese translation of the statement and it may require an extra step to convince the Legal Affairs Bureau of its authenticity.

In practice, many choose reputable banks (e.g., a local branch of HSBC or similar) and provide an official statement along with a note of the yen equivalent.
Tip: Check with your scrivener – some Legal Affairs Bureau offices are more accustomed to foreign bank proofs than others.

Capital Amount: Determine your capital amount and deposit exactly that sum, as the proof must match the capital stated in your Articles. Many foreign entrepreneurs start with a token low capital (like ¥100,000) just to ease incorporation, then plan to increase it later. Others will deposit a full ¥5 million upfront if they aim for a Business Manager visa. Keep in mind, whatever amount you choose will be “locked” as the company’s stated capital upon registration. It’s usable by the company after incorporation (it’s not a fee, just the company’s cash), but if you choose a very low number, it might limit initial credibility (and won’t meet visa requirements). Choosing ¥5,000,000 is common for those who know they need the visa, killing two birds with one stone.

Once deposited, obtain the bank documentation. If it’s a Japanese bank account, this is often a copy of the bank book page or an official transaction receipt with the bank’s seal. For overseas banks, an official statement or letter is needed. This, combined with your signed payment certificate, forms the Capital Payment Proof that will be submitted.

5. Submit the Incorporation Application to the Legal Affairs Bureau:

With the articles (notarized if KK), the payment proof, signature certificates, and all required forms in hand, the next step is to apply for registration. The application is filed at the Legal Affairs Bureau (法務局 Hōmu-kyoku) that has jurisdiction over your company’s registered address (e.g., if your office is in Tokyo, you file at the Tokyo Legal Affairs Bureau). Typically, your representative or proxy will prepare:

• The application form (登記申請書) – this is a standard form that lists the company details and what registration you are requesting (establishment of KK or GK). It will be signed by the representative director (for KK) or representative member (for GK). In your case, you’ll sign it (with your signature matching the signature certificate) or your proxy will affix your registered seal if you had one (usually not, so signature is fine).
• The Articles of Incorporation (with notary’s seal for KK).
• The capital payment certificate and bank evidence.
• The signature certificate (for each non-resident director or incorporator as needed).
• Affidavit or other supporting docs if any (for example, if a foreign corporate shareholder is involved, their representative might need to provide a resolution and certificate of incumbency, etc., along with translations).
• A letter of proxy if you have an agent submitting on your behalf.

Revenue stamps for the registration fee: The registration tax must be paid in revenue stamps affixed to the application. For a KK this is ¥150,000 (if capital ≤ approx ¥21.5 million; above that, 0.7% of capital). For a GK it’s ¥60,000 flat. Stamps can be purchased at a post office or the Legal Affairs Bureau. If filing online (rare for non-residents), the fee can be paid electronically instead.

Once compiled, the application is submitted either in person or by mail. If by mail, a self-addressed return envelope for your documents/receipts is usually included. In many cases, your judicial scrivener will handle the submission and correspond with the bureau on any issues.

The Legal Affairs Bureau will examine the documents, which typically takes about 1 to 2 weeks to process. If everything is in order, the company will be officially registered on their system, and you (or your agent) can then obtain the Certificate of Registered Matters (登記事項証明書) which is the official registration certificate, as well as the company’s registration number. The date of registration (which is essentially the company’s incorporation date) will be when the Bureau approves the filing.

6. Register the Company Seal (Inkan):

After the company is formed, one of the first post-incorporation tasks is to register your company’s official seal with the Legal Affairs Bureau. In Japan, companies use a registered representative seal (実印) in place of a signature for many official transactions. To do this, you need to have a physical seal carved with the company’s name (usually in Japanese characters). If you instructed a service provider, they often have the seal prepared by the time of registration.

Once you have the seal, you file a seal impression notification at the Bureau to obtain a Seal Registration Certificate for the company. This certificate is often required when opening bank accounts or signing certain contracts.

For non-residents, note that personal seals of directors are not registered (since you have no personal seal on record), but the company’s seal can be registered because the company now exists. Some non-resident CEOs choose to simply use the company seal for most things. However, where a personal seal or signature is needed (e.g., signing a real estate lease for the company), you will use your signature with the previously obtained signature certificate until you obtain a residence card and can optionally register a personal seal. In short, registering the company’s seal is a must-do step immediately after incorporation.

7. Post-Registration Notifications and Considerations:

Once your company is registered and you have the certification documents, there are a few additional steps:

• Tax Office Notifications: You are required to file notifications with both the national tax office and the local tax office (city/ward office) typically within 2 months of incorporation. These notify the authorities that your company has been established. If you have no resident directors, you will likely have a tax proxy or advisor in Japan handle these. The forms are in Japanese and include details like your business description, fiscal year, etc.
• Social Insurance/Payroll: If you plan to hire employees (even one, including yourself once you have a visa), the company will need to enroll in social insurance programs (health insurance and pension) and employment insurance. Without any resident staff, this might not apply immediately, but be aware that the moment you hire someone in Japan or the moment you, as a foreign representative, start drawing a salary in Japan, the company should register for these programs.
• Open a Corporate Bank Account: This step proves to be one of the hardest for non-resident companies, so it deserves its own discussion (see Corporate Bank Account Guide). Essentially, once you have your company documents, you can approach Japanese banks to open a corporate account. Be prepared for strict KYC requirements.

Timeline recap: Overall, the timeline to incorporate as a non-resident is roughly 4–6 weeks total in typical cases. This breaks down as ~1–2 weeks to draft and notarize documents (may be longer if mailing documents internationally), and ~1–2 weeks for the Legal Affairs Bureau to approve registration, plus a bit of buffer. Using experienced service providers can help anticipate document needs and avoid rejections, keeping things on track. It’s advisable to expect at least a month from start to finish. Once completed, you will have a Japanese company (KK or GK) fully established even while you personally remain abroad.

Total Estimated Costs of Incorporation

Setting up a company in Japan involves several types of costs. Here we’ll break down the government fees and typical professional/service fees for both a KK and GK. All amounts are in Japanese Yen (¥). Keep in mind these are one-time incorporation costs (annual running costs like taxes or accounting fees are separate). Exchange rates in 2025 put ¥100 = roughly $0.75 USD for reference.

Kabushiki Kaisha (KK) – Cost Breakdown:

• Legal Affairs Bureau Registration Tax: ¥150,000 (minimum). This is the fixed registration fee (paid via revenue stamp) for capital up to about ¥21 million. If your initial capital is higher, the fee is 0.7% of capital (so any capital above ~¥21.5M will incur more). Most startups keep capital low, so ¥150k is standard.
• Notary Fee (Articles of Incorporation): ~¥30,000–¥50,000. The notary fee for certifying the Articles depends on capital; for capital up to ¥30M the fee is ¥30k, and it increases to ¥50k in some cases for higher capital. (There’s also a small ¥10,000 fee if you ask the notary for an official copy of the notarized Articles.)
• Stamp Duty on Articles: ¥40,000. This is the tax on the paper document of the Articles of Incorporation. It is a flat ¥40k if you use physical paper. You can save this cost if you file the Articles electronically with a digital signature (then no stamp needed). In practice, many pay this ¥40k to avoid the complexity of obtaining digital certificates. (GK has the same stamp duty for paper, so this item is not unique to KK.)
• Company Seal (Hanko) Carving: ~¥5,000–¥20,000. Getting an official company seal made is a minor cost but we include it. Simple rubber stamps cost a few thousand yen, while a traditional engraved seal in stone or metal with registration may cost up to ¥20k. Many incorporation services include one for about ¥10k.
• Translation & Apostille Fees (If applicable): varies. Non-resident founders will likely spend money to notarize and apostille their signature certificate abroad and translate certain documents to Japanese. For example, notarization in your country could be $50–$100, an apostille $20, and translation ¥10k–¥20k, etc. Budget perhaps ~¥20,000–¥50,000 total for all document legalization and translations. (This can vary widely by country and number of docs, so this is an estimate.)
• Professional Service Fees (Optional): varies. If you hire a judicial scrivener or incorporation service like Smart Start Japan to handle the process, they will charge a fee for their expertise. This can range from ~¥100,000 up to ¥300,000 or more, depending on the scope (some packages include assistance with visa application, bank account setup, etc.). For a straightforward KK incorporation, many services charge around ¥150k. DIY approach can save this, but given the language and bureaucratic hurdles, most non-residents do use professional help.
• Miscellaneous: ~¥10,000. This covers small items like certified copies of documents, shipping fees, or procuring certificate of seal impression for a resident co-founder if needed, etc.

Total:

• Approx. ¥230,000–¥240,000 in mandatory government fees and taxes (assuming paper filing with stamps; slightly less if you go fully electronic).
• With professional services and documentation fees: you might be looking at ~¥400,000–¥600,000 all-in (e.g., ¥240k official + ¥150k service + ¥30k translations).
• If DIY: around the official fee range.

A published estimate puts a KK total anywhere from ¥250k up to ¥460k including various optional costs, which aligns with this breakdown.

Godo Kaisha (GK) – Cost Breakdown:

• Legal Affairs Bureau Registration Tax: ¥60,000 (flat). This is the government fee for GK establishment. It does not increase with capital – even if you put 10 million yen capital, it stays ¥60k.
• Notary Fee: ¥0. No notarization is required for GK articles, so you save the ¥30–50k that a KK would incur.
• Stamp Duty on Articles: ¥40,000 (if paper). GKs are subject to the same stamp tax on paper Articles of Incorporation. If you manage to use electronic signing for the GK’s articles, you could avoid this ¥40k cost as well. Many still go with paper and pay ¥40k.
• Company Seal: ~¥5,000–¥20,000 (same reasoning as KK). You’ll need a company seal made for a GK as well.
• Translation & Apostille Fees: similar range as KK, say ¥20,000–¥50,000, since a GK with foreign founders also needs signature certificates, etc., and translations for those.
• Professional Service Fees (Optional): Generally a bit lower than KK since work is slightly simpler. Some services might charge ~¥100k for a GK setup, up to ¥200k+ if lots of extras. The range could be ¥80,000–¥200,000 depending on provider. (For example, some offer a GK package around ¥100k if no visa support needed.)
• Miscellaneous: ~¥5,000–¥10,000. Slightly less than KK since fewer certified copies or notary copies are needed, but there will still be small expenses.

Total:

• Approx. ¥100,000 in mandatory fees (¥60k registration + ¥40k stamp). If you avoid the stamp via electronic filing, it could be just ¥60k.
• With professional help: ~¥200,000–¥350,000 total (e.g., ¥100k official + ¥100k service + ¥30k misc).
• If DIY: perhaps near ¥100k (assuming you handle all documents yourself).

A published estimate puts typical GK total in the range ¥110k to ¥270k including optional expenses.

Bank Account Challenges for Companies with No Resident Directors

One of the toughest practical hurdles after setting up a Japanese company as a non-resident is opening a corporate bank account. Japan’s banking sector is notoriously conservative and stringent with Know-Your-Customer (KYC) and anti-money laundering rules. Most banks strongly prefer (or effectively require) that a company have a representative director who is a Japan resident with a local address and identification (resident card) to open an account. When your company’s only director(s) are non-resident foreigners abroad, banks often view it as higher-risk and may refuse to open an account.

What challenges will you face?
For one, identity verification is tricky without a resident ID. Banks usually ask for documents like the company’s registry certificate, the company seal certificate, and the personal ID (passport, residence card) of the representative. They may also ask for proof of a local address for that representative. If you present a foreign address for the rep, many banks simply are not set up to accept that – their forms expect a Japanese address and a MyNumber ID or residence card number.

Additionally, banks will scrutinize the business plan and purpose of the account. A brand new company with no track record, owned by someone overseas, raises compliance flags under Japan’s AML regulations. Unfortunately, there have been cases of offshore entities setting up shell companies in Japan, so banks have become extremely cautious.

Feasibility:
It is not impossible to get a bank account, but you should be prepared for a possibly lengthy process or initial rejections. Some strategies and options to consider:

• Appoint a Local Co-Representative: Many foreign entrepreneurs solve this by bringing on a Japan-based person (a colleague, hire, or trusted friend) as a co-director or representative director specifically to facilitate banking. If that person has a local address and ID, the bank will treat the company as domestic. This doesn’t mean you lose control – you can still be a director and majority shareholder; the local person can be a minority director or an authorized signatory. Of course, this requires a trustworthy relationship, since they will have access to the bank account. It’s a common workaround to meet banks’ expectations.
• Choose a Foreign-Friendly Bank: Some banks in Japan are more open to foreign clients or newer businesses. SBI Shinsei Bank is often recommended for foreign-owned startups – it’s known for accommodating smaller businesses and has some English support. Their processes might be a bit more flexible, though they still require KYC documents. Tokyo Star Bank and certain regional banks sometimes advertise services for foreign entrepreneurs. Online banks like Rakuten Bank or PayPay Bank might be options for simpler accounts – however, they usually require a resident representative with a MyNumber for e-KYC.
• Present a Strong Application: Whichever bank you approach, come prepared. Bring your company registry certificate, seal certificate, Articles of Incorporation, and a well-prepared business plan or explanation of what the company will do. If you can show ties to reputable companies (e.g. it’s a subsidiary of an existing foreign company, or you have reference letters from a Japanese partner), that can help. Showing you have a local office (even if virtual) and a plan to hire or invest in Japan can alleviate concerns.
• Be Ready for In-Person Verification: Opening a corporate account often requires an in-person meeting at the bank branch by the representative. If you as the foreign director are in Japan (even short-term), you can try to do this with your passport and company documents. Some have succeeded by personally visiting the bank manager and explaining the situation. If you cannot be in Japan, having a local proxy with power of attorney sometimes works, but many banks insist the account holder (rep) be present at least once.
• Alternative Financial Solutions:
  • Fintech Payment Platforms: Services like Wise or Payoneer allow you to create multi-currency business accounts that can receive JPY and convert to other currencies. This isn’t a full local bank account (you can’t pay taxes via Wise), but it can help collect revenue.
  • Crypto-Friendly or Neobanks: These are limited in Japan due to regulation, but offshore accounts in Singapore or Hong Kong can temporarily help with international transfers.
  • Branch Office Banking: If your Japanese company is a wholly-owned subsidiary, sometimes you can leverage the parent’s existing banking network. A Japan branch of a foreign company might also access banking more easily—but still requires a local representative.
• Persistence: It’s not unusual to be declined by the first bank or two. Some entrepreneurs succeed with smaller regional banks if they show long-term commitment. Others found that after obtaining a Business Manager visa, the process became easier.

In summary:
Opening a bank account without a resident director is one area where Japan still lags behind its incorporation reforms. Expect added steps, and consider partnering with a local co-director. Always document your efforts, since even immigration may ask how you’re managing finances in Japan. For step-by-step assistance, see our guide to corporate bank accounts in Japan.

Visa Requirements After Incorporation (Business Manager Visa)

After successfully registering your company, if you intend to move to Japan to run the business, the next major step is obtaining a Business Manager visa (経営・管理ビザ). This is the standard route for foreign CEOs, founders, or managers to live in Japan and operate their company. It’s important to plan for this early, because the requirements can influence how you set up your business (particularly capital and office space).

Eligibility & Minimum Requirements:

• Investment Capital or Employees: You must show either (a) ¥5,000,000 in capital or (b) 2+ full-time Japanese or permanent resident employees. Most use the capital route. Note that the ¥5M must already be in the company bank account (or clearly available).
• Physical Office Space: You must have a real, dedicated office in Japan. Virtual offices don’t qualify. Co-working spaces may be accepted if you have a fixed desk and company signage, but a private lease is safer. See our full office space and visa guide.
• Viable Business Plan: Submit a detailed plan with financial projections and activity timeline. Immigration wants to see real revenue potential and operational intent.
• Relevant Experience: A strong founder profile helps. Include your resume, background, and relevant qualifications tied to your proposed business.

Documents Required (for Certificate of Eligibility – COE):

• Company Registration Certificate
• Articles of Incorporation
• Capital Payment Certificate or bank statement (proving ¥5M or more)
• Office lease agreement and photos
• Full business plan (often in Japanese, with market/financial data)
• Personal ID docs (passport, resume, photo, etc.)
• Optional support documents (e.g. client letters, proof of activity)

Process and Timeline:

• COE Filing: Apply at the regional immigration bureau. Processing time is typically 1–3 months.
• Visa Issuance: After COE approval, submit it to your local Japanese embassy for a visa sticker.
• Residence Card: Once in Japan, receive your residence card at the airport. Initial visa is typically 1 year (renewable).

Tips:
Many applicants hire an immigration lawyer to prepare and submit the COE and explain business viability. This reduces the risk of delays or rejection.

Also consider Japan’s Startup Visa Program, which grants 6 months to 1 year of provisional residency while you prepare your company to meet Business Manager visa standards. Programs exist in Tokyo, Fukuoka, and other cities. Learn more via JETRO’s startup support page.

In summary:
To fully operate your Japanese company on the ground, the Business Manager visa is essential. Ensure your business has real capital, a physical office, and a strong foundation before applying. For a full breakdown of the process and timelines, visit our Business Manager Visa Application Guide.

Common Challenges and Tips for Non-Resident Founders

Entering the Japanese market as a non-resident founder comes with some unique practical challenges beyond the formal steps above. Here are common issues and how to navigate them:

Registering Addresses (Personal and Company):
When filling out incorporation paperwork, you must provide an address for each director/shareholder. If you live overseas, your foreign home address must be recorded in the Japanese registry. This address will appear on the company registration for you. One challenge is the format – Japanese forms may not easily accommodate foreign addresses. Typically, you write it in English and/or Katakana. Ensure it’s consistent with your ID documents.

You do not need a Japanese personal address to incorporate (that’s the whole point of the 2015 change), but be aware that using only foreign contact info can lead to communication delays. The company’s official address in Japan will be where all official mail goes; since you aren’t there, have a system to receive that mail (a virtual office service or a proxy who checks mail). After you move to Japan on a visa, you can update the registry with your new local address, but it’s not mandatory unless you change directors.

Tip: If the Legal Affairs Bureau has any question or issue during registration, they might send a letter or need to call – having a reliable contact (judicial scrivener or local partner) is very helpful so that nothing slips through due to you being abroad. More details in our Japan Incorporation Checklist.

Notarization and Legalization Abroad:
Because you cannot be in Japan to stamp an inkan, various documents need to be notarized abroad. Obtaining a Signature Certificate from a notary or consulate (and then getting an apostille or consular verification) can be time-consuming. Plan ahead for this paperwork. Also, if you need to sign a Power of Attorney for your proxy in Japan, that too might need notarization.

Different countries have different processes (e.g. in some places a notary + apostille suffices; in others, the Japanese embassy must directly issue the cert). Consult the Japanese embassy or your scrivener about what format the Legal Affairs Bureau will accept. Typically, an apostilled notarized statement of signature works.

Ensure the name on these documents matches exactly how it will appear on the Japanese forms (including middle names, etc., to avoid discrepancies). Lastly, any foreign corporate investor (if your overseas company is investing) will have to provide documents like a certificate of incorporation from its country, also notarized and translated. Gathering these can be an administrative headache, so start early. Smart Start Japan can assist with notarization and signature certificate requirements.

Lack of “My Number” ID and Other Identification Hurdles:
Japan issues a 12-digit Individual Number (“MyNumber”) to residents for tax and social security identification. As a non-resident, you won’t have this. This can complicate tasks like opening bank accounts (banks usually ask for the rep’s MyNumber card), registering for health insurance, or even some online registrations.

For example, when registering your company for taxes or certain e-government services, there are fields for the rep’s MyNumber – in those cases, you generally leave it blank or write that you’re non-resident, and the officials will use alternate identification (like your passport). Be prepared to explain this in various processes.

Similarly, you won’t have a Japanese Residence Card until you get a visa. Many application forms (banking, phone contracts, etc.) expect one. You will have to use your passport and overseas ID, and not every service accepts those. One workaround for things like a cell phone or internet contract is to wait until you have the Business Manager visa (or use a portable Wi-Fi in interim). For banking, as discussed, no MyNumber/residence card often equals no account until you resolve via a local representative or your own visa.

Language Barrier:
Almost all incorporation documents and government correspondence will be in Japanese. Unless you are fluent, this means you’ll need translations and possibly an interpreter for any calls or meetings. The Legal Affairs Bureau typically corresponds in Japanese only. Tax offices, banks, and immigration – while some have English guides – will handle your case in Japanese.

To avoid miscommunication, it’s highly recommended to have a bilingual professional assist you or at least review everything. When sending inquiries by email or letter to officials, writing in Japanese will get far more response.

Using services (like Smart Start Japan or others) that cater to foreign entrepreneurs can bridge this gap – they’ll translate and communicate on your behalf. Even day-to-day, getting a Japanese business bank account (once you have one) means dealing with Japanese online banking interfaces and forms. Plan for ongoing language support unless you’re confident in business Japanese.

Remote Communication and Delays:
Being physically absent in Japan means you’ll be doing a lot by international mail and email. Original documents like the notarized Articles or signature certificates will need to be shipped to Japan for filing. Couriers take a few days; if there’s a mistake and something needs re-signing, add another week. Time zone differences can slow coordination – an urgent call from the Legal Affairs Bureau might come at 3 AM your time.

To mitigate this, set up clear lines of communication with your Japan contacts. Provide a letter of attorney so your local scrivener can fully represent you and respond to any issues. Use express shipping and send important documents well in advance of deadlines. Also, consider the seasonality – for instance, Japanese bureaus are quite busy around end of March (end of fiscal year), which might slow processing.

Minor errors in paperwork that could be fixed same-day in person might take a week each to clarify when you’re remote. Patience and diligent follow-up are key. Keep scanned copies of everything you send, and double-check all spellings (a typo in your name could require a resubmission).

Addressing Bureaucratic Unknowns:
Non-standard situations (like all directors abroad) sometimes confuse local officials. For example, when registering at the tax office, the clerk might scratch their head because the representative has no resident ID – something they rarely see. Be ready to politely educate or provide additional explanation.

Tip: Carry copies of the Ministry of Justice’s official guideline (in Japanese) stating that non-resident directors are allowed. This can help resolve doubts when speaking with officials or bank clerks.

Essentially, you have to be your own advocate in navigating a system that is still adjusting to foreign entrepreneurs. We cover this in our Non-Resident Founder Guide.

Despite these challenges, many non-resident entrepreneurs successfully launch companies in Japan every year. The keys are preparation, local support, and persistence. With the legal framework on your side, it’s a matter of working through the procedural hurdles.

And remember, once you obtain your visa and settle in, many of these pains (banking, MyNumber, communication) will ease over time. Japan is making gradual improvements to welcome foreign business owners – and having gone through the process, you’ll be uniquely qualified to tackle the market.

Ready to Start Your Business in Japan?

Navigating incorporation, visas, and setup can be complex, especially from overseas – but you don’t have to do it alone.
Smart Start Japan specializes in guiding foreign CEOs and entrepreneurs through each step, from establishing your KK/GK to securing your Business Manager visa and beyond.

Contact Smart Start Japan today for personalized assistance in launching your Japan venture.
Let us handle the red tape, so you can focus on your business vision.
Your bridge to Japan starts here – and we’re excited to be a part of your success story.