Stricter visa requirements for business managers: Why don’t you Establish a company in the US istead of Japan?

Effective October 16, 2025, the requirements for foreigners to establish a company and obtain residence status as Business Manager will be tightened. The new requirements include: 1. Minimum capital of JPY30,000,000 instead of JPY5,000,000; 2. Employment at least one Japanese national or permanent foreign resident; 3. Three or more years of company management experience or a master or doctor degree in business administration; 4.Business plan was reviewed by professional; and 5. Sufficient Japanese language knowledge for either the employee or applicant. The official document is available here. The previous requirements were too lenient anyway. These requirement will be applied to the foreigners having this status as well. They will lose their renewal status if they do not meet the new requirements within three years, although not immediately. The tightening of the requirements is intended to exclude foreigners who create fictitious businesses in order to live in Japan. However, there are concerns that sudden tightening will discourage foreigners who truly want to do business in Japan. For those people, I have a suggestion: why not start your company in the United States instead of Japan? Doing business in the US is much easier than doing business in Japan. I would like to explain why below.

1. Easy process for establishment

As a licensed solicitor (Gyosei Shoshi) in Japan, I’ve probably helped over 100 foreign companies establish in Japan, but I still find setting up a company incredibly tedious. The process is as follows:

(1) Determine the company structure—purpose, members, headquarters location, fiscal year—and prepare the articles of incorporation.

(2) Show the draft to the notary public, and if approved, I do sign it, submit it through online system, attach the bound articles of incorporation and power of attorney by paper, have the client stamp it, obtain seal certificates for relevant parties, have it certified by the notary public, and receive a certified copy of the articles of incorporation with other docs from the notary public.

(3) After the articles of incorporation are certified, have the company capital transferred to the client’s own account or the account of a person they entrusted, prepare documents verifying the payment, and register the company (registration done by Shiho Shoshi).

Other tasks include signing a lease for the head office, creating a corporate seal, and checking the beneficial owner, etc. Once the company registration is complete, you’ll then need to have a tax accountant submit a open the company application to the tax bureau, and the certificate will be required for your residency application, so coordination with a tax accountant is also required.

In contrast, in most US states, the incorporation filing is easy- after you enter the necessary information into the state Secretary of State’s online system and pay the application fee, the filing is complete within 1 to 2 weeks. Of course, you need to decide on things like capital, stock price, and board members before applying, but there’s no need to show the capital amount in your bank account, and in California, there’s even no need to determine the specific company’s purpose. The default attitude is, “As long as you pay corporate tax, that’s fine, and you can do whatever you want as long as it’s legal.” Huge difference between them.

2. Easy to open the corporate bank account and transaction with biz partners & customers

I don’t understand why Japanese banks are so strict when trying to open the bank account. Although I provide advice to the clients for ensuring account opening goes as smoothly as possible when setting up a company, I’ve never heard of a company with a single foreign representative director being able to open a corporate account without any problems. No corporate account means you can’t do business in Japan. Since the initial year of a business manager status is typically one year, I’ve repeatedly said that when applying for renewal on behalf of the clients, the business wasn’t on track because the banks were not allowed the applicants to open the corporate account. When I was the Japan representative for a UK recruitment agency, I went to Mitsubishi UFJ Bank immediately after setting up the company. I was asked, “Why do you need an account?” I replied, “Because we can’t do business without corporate bank account,” and they told me, “Show us a contract or some other evidence that you need business.” I went to open an account to start doing business, but they were forcing me to create business before hand. Despite submitting email correspondence in English with a major IT client as proof of transaction, the bank ultimately determined that an account wasn’t necessary until it obtained a recruitment license. Consequently, we were unable to open an account for about six months after our establishment, and we were unable to even receive fees from our clients for consulting work. (Since then, I recommend to visit other banks except Mitsubishi.) If this is how it works with a Japanese representative, it’s easily imagine how the bank react to foreign biz managers. And Mitsubishi isn’t the only bank to behave this way. It’s unclear what Japanese banks are trying to protect, and despite making profits by managing our money, they stubbornly refuse to allow companies seeking to deposit and transact with their money.

In contrast, in the US, if the representative or partners visit the bank together and present the company registration documents, operating agreement, business license, etc., an account can be opened without problem. Online and app transactions are simple and easy, and perhaps they don’t even want people to visit the bank in person, so once you visit the bank, there’s almost no need to go back anymore. As I wrote in another blog, opening an account with transaction systems like Mercury or Wise requires only uploading the necessary documents and verifying your identity online via camera. Mynumbercards, drivers license cards and passports contain IC chips for identity verification, so that should be sufficient. Using Mercury, you can also create various graphs on the screen, including transaction records. Also, unlike in Japan, transactions between American banks can be done online in less than five seconds without the video calls or face to face transaction at bank. This clearly shows how Japan and its banks have fallen behind the rest of the world in terms of their outdated systems.

3. Online system and Remote availability

In Japan, registration and deposit system operated by the Legal Affairs Bureau ca be used from 8:30 AM to 9 PM on weekdays; applications submitted after 5 PM are processed the next day. While the online residence application system claims to be available 24/365, support is only available on weekdays and is not accessible from overseas. Furthermore, when using government agencies’ online systems, corrections or questions after application are coming by phone, since the person in charge does not have a personal email address. Completion of paperwork and results are often sent by mail. Therefore, it is nearly impossible to handle procedures and permits overseas unless you have someone in Japan as your contact point.

In the US, on the other hand, almost all federal and state procedures are completed online, and even postage can be paid online, eliminating the need to visit the post office. Most communication regarding online applications is received online or by email. Of course sometimes it is necessary to negotiate the thing by phone, but remote access from Japan is sufficient for normal business operations. Systems that only work in the US can be connected to American servers via VPN. Therefore, even if you establish a company in the US, it is entirely possible to conduct business overseas.

4. Comparing Biz Manager Status in Japan with E2 Visa in the US

I’ve written extensively about how doing business in the United States is easier than in Japan, but you may wonder: Is it easier to obtain an investor visa in the United States than in Japan? I am writing the answer below. Note I am talking about general investor visa=E2, not EB5.

The requirements for management and administration in Japan—a capital of 30 million yen and at least one employee—are similar to those for an American investor visa. The requirements for the E2 visa in the US are an investment of around $100,000–$200,000 (it doesn’t have to be capital; how much you will use for the business). The employment requirements have become stricter since the Trump administration took office, two employees rather than one to be considered an impact on the American economy. However, unlike in Japan, proof of management experience or language proficiency is not required. And, as mentioned above, in Japan you must first obtain residency status to gain credibility and then personally develop business partners and negotiate contracts. On the other hand, even after you established a company in the US, it’s entirely possible to conduct business remotely. Once your company is established and your business is on track, you can simply hire local American employees, pay them, and receive dividends as a shareholder. If you try to obtain business management qualifications and reside in Japan from the start, you’ll likely struggle to get your business running smoothly, eventually returning to your home country. Many people have even closed their companies as a result. It’s truly disappointing to see companies my office helped establishment disappeared or its manager return to their home countries.

In contrast, in the US, you can operate remotely without a visa during the preparation period, and then apply for a visa once your business is on track and you have a clear vision of the future and the numbers. Your visa application will be rejected unless you can prove your business is on track and have an impact on the American economy anyway. Of course, unless you have a visa or residence status that allows you to work in both Japan and the United States, you are not allowed to work and get a compensation at a country you do not have residence status or visa, so please pay attention your activity is legal and consult an expert.

Even so, if you still want to start a business in Japan, even with the stricter requirements, or if you’re interested in doing business in the United States, please contact our office.