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.
Business Manager Visa in Japan
Not necessarily. The key factor for renewing a Japan Business Manager Visa is whether the company demonstrates ongoing business activity, rather than simply whether it has revenue. The Immigration Services Agency typically evaluates the company’s overall operational status, financial statements, corporate tax filings, bank transaction records, and future business plans. If the company has no business activity for an extended period, it may affect the renewal outcome. Therefore, it is recommended to maintain normal business operations after the company is established and complete accounting and tax filings on time.
A company operating at a loss does not automatically lose eligibility to renew a Japan Business Manager Visa. The Immigration Services Agency evaluates the company’s overall business condition, the reasons for the loss, future improvement plans, and whether the company has the capacity to continue operating. If losses occur due to early‑stage startup conditions or market factors, but the company is still conducting normal business activities and properly completing corporate tax filings and accounting procedures in Japan, renewal is generally still possible.
Whether a company can operate without employees depends on its business model and the type of visa involved. For company establishment alone, a Japan corporation may be operated solely by its representative, and there is no requirement to hire employees immediately. However, if the situation involves applying for a Business Manager Visa in Japan, you must follow the latest legal requirements and the Immigration Services Agency’s screening standards. It is recommended to conduct an individual assessment before applying.
Yes, but the company must meet the Immigration Services Agency’s screening requirements. Each applicant must be genuinely involved in the company’s management or operations and be able to demonstrate the necessity and substance of their role. If the company’s scale, business activities, or staffing structure is insufficient, it may not support multiple Business Manager Visa applications. Therefore, eligibility is generally determined on a case‑by‑case basis.
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.