Frequently Asked Questions

Set up a company in Japan

Although Japanese law does not require a newly established company to open a bank account immediately, in actual business operations almost all companies need to receive and make payments under the corporate name. Therefore, it is advisable to apply for a corporate bank account as soon as the company is established. Banks typically review information such as the company’s business activities, the representative’s identity, office address, and purpose of transactions. As a result, even if corporate registration has been completed, it does not guarantee that an account can be opened right away. If you plan to apply for a Japan Business Manager visa or begin formal operations, it is recommended to plan for bank account opening early in the company-setup stage.

It is possible, but it depends on the company’s business activities and future plans. For basic corporate registration, some business centers or shared offices can be used as the company’s registered address. However, if you intend to apply for a Japan Business Manager visa, the Immigration Bureau generally requires a compliant physical office space, meaning not all virtual offices are acceptable. It is recommended to confirm in advance whether the chosen address meets the requirements for company registration, bank account opening, and visa applications, to avoid needing to change the registered address later.

Business Manager Visa in Japan

The rules effective from 16 October 2025 generally require at least JPY 30 million in capital or equivalent business assets for new applications. There are also conditions for full-time employees, Japanese language ability, qualifications and the business plan. Renewals for existing status holders have transitional arrangements, so capital alone does not determine the outcome.Tell us whether this is a first application or a renewal. See the Immigration Services Agency’s guidance.

The actual business and residence circumstances must be assessed. A prolonged lack of activity may affect renewal. Financial records, transactions and future plans should show how the business will continue operating.

A loss does not automatically mean renewal will be refused. The reasons for the loss, financial position, ability to continue operating and improvement plan need to be reviewed together.

Company registration and Business Manager residence status are separate matters. Staffing can reflect the business model, but new Business Manager applications have full-time employee and other requirements. Registering a company alone does not establish eligibility.

This requires an individual assessment. Each applicant’s duties, experience and qualifications, together with the company’s size, activities and staffing, must support the need for their actual management role.

Accounting in Japan

Yes. Once the company in Japan is established, it is generally required to complete annual financial statements and file all applicable Japanese tax returns — even if the company has no business income. This includes corporate tax, corporate inhabitant tax, and other applicable tax items. Whether tax payments are actually required depends on the company’s operating status and the tax system applied.

Yes, even if the company has no business income or transaction records, it is still required by law to complete annual financial statements and file Japan’s corporate tax returns. If the company remains inactive for a long period, you may consider options such as dormancy or dissolution and liquidation depending on the situation, but all related filings must still be completed in accordance with Japanese regulations.

The company in Japan typically files corporate taxes once per fiscal year, based on its financial year‑end. The filing deadline is calculated according to the company’s closing date. In addition, depending on regulations, the company may also need to file consumption tax, withholding tax, or interim corporate tax returns. Therefore, the actual filing requirements vary depending on the company’s scale and business activities.

A Japan company is required to keep complete accounting books and transaction records, and use them to prepare financial statements and annual closing. Proper bookkeeping not only supports corporate tax filings, but also serves as an important basis for bank financing, visa renewals, and overall business operations.

Japanese law does not require every company to hire a licensed tax accountant. However, because Japan’s tax system and filing procedures are relatively complex, most companies still engage professional tax accountants to assist with annual closing, corporate tax filings, and tax planning, which helps reduce filing errors and tax risks.

Labor services in Japan

Companies and employees that meet Japan’s legal requirements are, in principle, required to enroll in social insurance, including Health Insurance and Employees’ Pension Insurance. Whether the rules apply and when enrollment must occur depend on the company type, employment status, and relevant regulations, so it is advisable to plan for this as early as possible after the company is established.

When a company hires employees who meet the legal requirements, it is generally required to enroll them in Employment Insurance and Workers’ Accident Compensation Insurance. Failure to do so may affect employee rights and create legal liabilities, so it is advisable to complete the enrollment procedures when the employee starts work.

Japanese companies typically pay salaries once a month, with the payday set by the company — commonly the 25th of each month or the end of the month. Salaries must be paid on time in accordance with the Labor Standards Act and company policies, and must include legally required deductions such as income tax, social insurance, and other statutory items.

Permanent Residence in Japan

Yes. Holders of the Business Manager Visa in Japan may apply for Permanent Residence in Japan if they meet the required residence period, tax records, social insurance compliance, and other statutory conditions. Eligibility must still be assessed based on each individual’s circumstances.

The required years of residence for the Permanent Residence in Japan are not the same for everyone. They vary depending on the applicant’s visa type and individual circumstances. In addition to residence duration, the Immigration Services Agency also reviews tax compliance, social insurance participation, income stability, and good conduct. It is advisable to confirm eligibility in advance before applying.

The Permanent Residence in Japan grants indefinite residence while retaining your original nationality; the Naturalization in Japan grants Japanese nationality and, under relevant laws, generally requires renouncing your original nationality. The two differ in eligibility criteria, rights and obligations, and legal status, so individuals should choose the option that best aligns with their long‑term plans.