Doing Business in Japan
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Knowledge base on doing business in Japan. Topics: visas and immigration (including the Business Manager visa 経営・管理 and the October 2025 reform), company registration (株式会社/合同会社/個人事業主), taxes, legal issues and cases, documents and procedures (banking, offices, accounting, hiring), useful links and contacts, and other business-relevant topics (culture and mentality, networking, marketing, real estate, lending, insurance).
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Naturalization (帰化, Kika): Path to Japanese Citizenship
Naturalization needs 10 years of residence (or ~5 via HSFP) and giving up other citizenships; it is markedly harder for entrepreneurs than for employees.
The general path to Japanese citizenship (帰化, kika, naturalization) requires 10 years of residence without a Highly Skilled Foreign Professional (HSFP) status. Under HSFP the timeline is reportedly shorter (5 years has been mentioned), but applicants must give up all other citizenships, since Japan does not permit dual citizenship. For entrepreneurs, naturalization is reportedly considerably harder than for employees; based on chat participants' experience, almost every known case of an entrepreneur applying ended in rejection. Two years of language school study, plus at least 3 of the required 5 years of work, count toward the 5-year continuous residence and work (with taxes paid) requirement needed to apply for citizenship. For entrepreneurs specifically, practically all known cases in the chat ended in rejection; although the sample is small (two rejections), the pattern was noted repeatedly. Entrepreneur applicants are required to submit more documents, and the Ministry of Justice's regional legal affairs bureau (homukyoku) website has a separate section specifically addressing business owners. In practice, there is also an unwritten requirement of roughly 3 years of continuous employment; this is not codified in law but has become established administrative practice. People have successfully naturalized despite a period of unemployment (six months without work is reportedly not an obstacle), including cases where a spouse and children migrate together with the main applicant. For sole proprietors or owners of their own business without employees, kika is almost never approved — only rejections are known in this category. Applicants must also demonstrate full financial transparency: statements from all active bank accounts, including foreign accounts if that country exchanges tax information with Japan, are required, and declared income sources must be itemized and must reconcile with the applicant's housing contract and filed tax declarations. Requirements here are stricter for business owners than for employees. Compared to permanent residency (PR), the kika procedure does not require a Japanese guarantor or reference (推薦人). Reasons for a kika refusal are also not disclosed to the applicant, unlike PR refusals. Chat participants found no official precedent of a naturalized Japanese citizen having their citizenship forcibly revoked, though this search was conducted via AI and has not been independently verified.