Possible to found a company on a student visa?

I’m a PhD student here on a student visa. Alongside my research activities, I’ve been developing an app. Through happenstance, I have found a potential investor who is willing to invest 10,000,000 JPY towards the project. With that money, I’d like to hire 2-3 freelancers. Eventually, I want to sell the app on the iOS and Android app stores.

I’ll be working on this less than 28 hours per week, so technically it should be legal I suppose? I’m still pursuing my PhD research the majority of my time here. Do I need to register a type of company here if I plan to sell an app on the app store, or if I plan to hire freelancers? I’ve read about Kojin Jigyo before. Would this allow me to sell an app on the app store and to hire freelancers?

I’m good with computers, but not so much with law, and my Japanese isn’t great either. What kind of professional do I need to consult with here? An accountant? A lawyer? Is there any organization that I could approach about this?

I’m grateful for any kind of heads up or information.

4 comments
  1. you want a 行政書士 “legal scrivener” .

    They also can call themselves “immigration lawyers” but since they aren’t lawyers (i.e. cannot appear in court for you) I don’t particularly like the term.

    I doubt the 28 hour part-time work thing would cover managing a business. Registering as a corporation etc is a mater for the tax man — not the immigration man.

  2. I would recommend consulting with an “immigration lawyer” first.

    My (possibly incorrect) understanding is that you would first need to switch from your current visa, to a business manager visa. A schoolmate of mine in university was a silent partner of a small cafe that he established, and had shared that it was one of the first things he was required to do.

  3. If you’d only be making a few ten thousand yen a year, you’d be able to get away with a simple kojin jigyo and “permission to engage in other activities” stamp and not much else. But this is quite a sizeable investment that goes way beyond what most students would earn.

    Immigration will ask questions about how a student came into such money. So as others have said, before you do *anything* I recommend consulting with a 行政書士 visa specialist who may suggest changing to a business manager visa. If you’re serious about turning this into a reputable business I would also recommend investing in a Japanese business lawyer to help you set up a 株式会社. They can also help you with all the tax and legal hurdles.

    Also, and I’m sure this goes without saying and I apologise if this sounds cynical, but beware of scams and charlatans. I have heard of students being hooked by “investors” willing to pay millions of yen for a business idea (apps or online businesses in particular) only for it to turn out to be a scam at worst or a business who cheats you out of your fair share at best. Make sure these investors are legit and really are who they say they are before you take this any further. Ask for case studies, previous successful clients of theirs you can speak to, registered corporate number etc.

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