Company Formation and Visa Planning Should Be Reviewed Together
One of the most common questions Korean companies ask when preparing to enter Japan is whether they should establish the company first or apply for the visa first.
Japanese company formation and the Business Manager Visa may appear to be separate procedures, but in practice they are closely connected.
Because the Business Manager Visa is reviewed on the assumption that the applicant has an actual business base and office in Japan, visa requirements should be considered from the company formation stage.
In particular, since the requirements for the Business Manager Visa were significantly strengthened from October 16, 2025, companies now need to prepare comprehensively for matters including capitalization, full-time employees, managerial experience, Japanese-language capability, and verification of the business plan.
What Is the Business Manager Visa?
The Business Manager Visa (経営・管理) is a status of residence for foreign nationals who operate a business in Japan or engage in the management of a company.
It is commonly used where a foreign national is appointed as:
- representative director;
- director; or
- branch manager,
and carries out substantive management activities in Japan.
Unlike an ordinary employment visa, it is intended for individuals who remain in Japan as business operators or company managers.
Accordingly, where a Korean company establishes a Japanese entity and dispatches a representative or officer to Japan to manage the business, the eligibility requirements for the Business Manager Visa should generally be reviewed.
Key Requirements After the October 2025 Amendment
From October 16, 2025, the requirements for the Business Manager Visa were strengthened as follows.
| Category | Before Amendment | After Amendment |
| Capital Requirement | JPY 5 million or employment of at least 2 full-time employees | Capital of at least JPY 30 million + at least 1 full-time employee |
| Full-Time Employee | Not required if capital requirement satisfied | At least 1 qualifying full-time employee required |
| Managerial Qualification | No separate requirement | At least 3 years of business management experience or a relevant degree required |
| Business Plan | Submission-focused | Expert verification required |
| Japanese-Language Ability | No separate requirement | Applicant or at least one full-time employee must generally have Japanese ability at B2 level or above |
Companies that began preparing under the previous requirements should therefore reassess their market-entry structure based on the current rules.
Capital and Full-Time Employee Requirements
Under the amended framework, an applicant for a Business Manager Visa must generally demonstrate capital or investment totaling at least JPY 30 million.
Compared with the previous threshold of JPY 5 million, the entry barrier has increased substantially.
It is not enough to show that the funds have simply been deposited.
The applicant should be able to demonstrate the source and formation of the capital through supporting materials such as:
- bank balance certificates;
- remittance records; and
- income or asset documentation.
Where the applicant applies through a corporate entity, amounts such as:
- capital reserve;
- capital surplus;
- retained earnings,
may not necessarily be included in calculating the JPY 30 million threshold, so the capitalization structure should be reviewed carefully.
In addition, the company must employ at least one qualifying full-time employee.
For this purpose, eligible employees are generally limited to persons such as:
- Japanese nationals;
- special permanent residents;
- permanent residents;
- spouses of Japanese nationals;
- spouses of permanent residents; and
- long-term residents.
Foreign nationals newly hired under work-related residence statuses such as Engineer/Specialist in Humanities/International Services are generally not counted toward this full-time employee requirement.
Office Requirements and Business Plan Review
For the Business Manager Visa, the company must secure an office in Japan from which it can actually conduct business.
A simple virtual office that only provides an address, a lease entered into under an individual’s name, or a space shared with a residential property may adversely affect the application.
However, offices provided by certain startup support institutions may be accepted in limited circumstances where they satisfy applicable usage and operational requirements.
The business plan is also no longer treated as a mere formal document.
It should explain in concrete terms:
- business activities;
- revenue model;
- market analysis;
- funding plan;
- hiring plan; and
- business sustainability.
Under the amended framework, verification by an approved professional may also be required, such as a certified public accountant, tax accountant, or other qualified expert in Japan.
Process from Japanese Company Formation to Visa Application
Where the goal is to obtain a Business Manager Visa, a typical process is as follows:
1. Review the structure for establishing the Japanese company
2. Contribute capital and complete company registration
3. Secure an office
4. Hire at least one qualifying full-time employee
5. Prepare the business plan and obtain expert verification
6. Apply for a Certificate of Eligibility
7. Obtain the visa through the Japanese Embassy or Consulate in Korea
Before the company is formally incorporated, it is generally not possible to open a corporate bank account.
As a practical workaround, the founder, proposed representative director, or a third-party nominee may initially use a designated account to contribute the incorporation capital.
Considering the overall schedule, it is generally prudent to allow at least three to six months from the beginning of company formation through visa issuance.
Overseas Direct Investment Reporting Should Also Be Reviewed
When a Korean company establishes a Japanese entity, it should consider not only Japanese company formation and immigration procedures but also the Korean foreign exchange reporting structure.
If a Korean company or individual acquires shares in a Japanese company or remits capital to Japan, the transaction may be subject to Korean Overseas Direct Investment (ODI) reporting requirements.
Depending on the business sector, the Japanese side may also require a post-transaction report or prior notification relating to the share acquisition.
Accordingly, at the capital remittance stage, the following matters should be reviewed together:
- whether Korean ODI reporting is required;
- whether Japanese filing or prior-notification requirements apply;
- shareholder structure; and
- expatriate staffing structure.
Market-Entry Structuring Should Come First
Since the October 2025 amendment, the Japanese Business Manager Visa has been redesigned to focus more heavily on businesses with substantive management intent and financial capacity.
Companies preparing to enter Japan should therefore not begin with company incorporation alone.
They should review together:
- Business Manager Visa requirements;
- Korean ODI reporting;
- capitalization method;
- visa status of dispatched personnel;
- office structure; and
- local hiring plan.
Designing these elements from the outset can help reduce unnecessary amendments, supplementary documentation requests, and procedural delays.
DECENT Law Firm provides integrated support for Japan market entry, including:
- Japanese company formation structuring;
- Business Manager Visa requirement review;
- visa planning for dispatched personnel; and
- Korean overseas direct investment reporting review.