I’m a Japanese national and plan to co-found a company in Japan with a foreign business partner. What procedures are required?

When launching a joint venture between a Japanese and a foreign national, you must carefully review both your business plan and the applicable immigration regulations.

Starting a Joint Venture Between a Japanese and a Foreign National

We often receive inquiries from Japanese nationals interested in launching a new business with a foreign partner in Japan.

For a foreign national to serve as a company executive in Japan—whether as a representative director, CEO, CTO, or officer in a KK or GK—they must hold an immigration status that permits business management.

Unless the foreign national holds an unrestricted status such as “Permanent Resident” or “Spouse of a Japanese National,” they will generally need a Business Manager Visa or Highly Skilled Professional (HSP) Type 1(c). This requirement also applies if they are currently residing overseas, unless they plan to enter Japan under a spouse visa after marrying a Japanese national or permanent resident.

To qualify for a Business Manager Visa, several strict conditions must be met: a capital investment of at least ¥5 million (a ¥1 million startup is not acceptable), establishment of an independent office (no home-based offices), and the payment of a reasonable executive salary (zero compensation is not permitted). Additionally, the business role must align with what is recognized under immigration law—for example, waiting tables in a restaurant is not permitted.

It is not uncommon for new ventures to be unable to secure a visa for the foreign partner due to issues with capital amount, shareholder structure, office location, compensation plans, or job duties. Therefore, structuring your business with immigration requirements in mind is essential. We strongly recommend seeking professional advice before proceeding.

If Business Manager Visa Requirements Cannot Be Met

In many cases, entrepreneurs find they cannot meet the visa requirements. Common issues include: insufficient capital (e.g., planning to invest only ¥3 million), or the intended role not qualifying under the Business Manager Visa.

If the visa cannot be secured, the foreign national will not be able to join as a corporate officer but may still participate as a shareholder. Alternatively, they may join the startup as an employee under a different work visa.

Depending on their job duties, the most suitable status may be Engineer/Specialist in Humanities/International Services, Skilled Labor, or “Specified Skilled Worker.”
In this scenario, while the new company’s financial stability and office location are still reviewed, the overall burden on the foreign partner is significantly reduced.

Continental’s Support Services

When a Japanese national and a foreigner plan to start a business together, immigration regulations play a decisive role in determining whether their business plan can be realized. In some cases, your original plan may need to be slightly modified to meet immigration law and examination standards.

At Continental, we conduct a detailed hearing to understand your business objectives and tailor the optimal structure accordingly. Please don’t hesitate to reach out with any concerns.

About the Author

Masakazu Murai
Startup Visa Consultant for Foreign Entrepreneurs

Supporting foreign entrepreneurs from visa acquisition to fundraising with maximum efficiency and risk reduction.

Former investment banker at Mitsubishi UFJ Morgan Stanley Securities, advising on corporate finance, fundraising, and M&A. Actively promoted diversity and labor reform as a board member of the employee union. Specializes in immigration consulting and financial advisory for non-Japanese clients.

Registered Immigration Lawyer, Certified Financial Planner (CFP®), and Certified Member of the Securities Analysts Association of Japan.

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