- Introduction
- Before you begin: “Freelancing” and “Running a Business” are legally different
- Freelancing under a Work Visa
- Running your own business = Business Manager Visa
- What most foreigners actually do
- Requirements for Freelancing on a Work Visa in Japan
- Alternative Pathway: Japan’s Digital Nomad Visa
- Frequently Asked Questions
- Q1: Can foreigners register as sole proprietors (個人事業主)?
- Q2: Can I freelance on an Engineer / Specialist in Humanities / International Services visa?
- Q3: Can I run a business while holding a work visa?
- Q4: Can I work with overseas clients from Japan?
- Q5: Does freelancing affect my future permanent residency application?
- Key Points to Keep in Mind
Introduction
This page explains how foreigners already living in Japan can legally switch from a full-time job to freelance work while staying on their current work visa, and what to watch out for regarding immigration, tax, and social insurance.
Many foreign residents in Japan wonder whether they can switch to freelancing, take on multiple clients, or work independently while staying on their current visa.
The short answer is:
Yes – freelancing is possible in Japan, but only if :
・you have at least one main sponsoring company and
・your freelance activities stay fully within the scope of your current work visa category.
At the same time, running an independent business or operating a company in Japan requires a different visa type and is subject to strict regulations, especially after the major reform took effect in October 2025.
This page explains the difference clearly and helps you understand what is actually allowed.
Before you begin: “Freelancing” and “Running a Business” are legally different
Many people mix up these two ideas, but Immigration treats them completely separately.
Freelance / sole proprietor (within work visa scope)
An individual works for multiple clients or accept project-based work, but the content of your work matches your existing visa category.
Examples:
- An IT engineer doing freelance coding
- A designer taking multiple contracts
- A translator working for several companies
- A marketer or consultant billing different clients
Running a business / company
You operate a company, sign contracts as a business entity, hire staff, or manage business operations.
This requires the Business Manager Visa, not a normal work visa.
Understanding this distinction is essential before changing your work style.
Freelancing under a Work Visa
If your work remains consistent with your visa category (Engineer / Specialist in Humanities / International Services, etc.), you can do freelance-style work.
You may:
- Work for multiple clients
- Have project-based contracts
- Invoice clients directly
- Work remotely
- Earn from side projects related to your field
What matters is that your actual work content matches what your visa allows.
⚠ Important: Immigration treats “supplementary freelance work” very differently from “operating a business.”
Freelancing under a work visa is generally accepted only if you maintain at least one primary sponsoring company and your activities are simply additional assignments within the same visa category.
However, if most of your income comes from many small jobs for individual clients, or if your activities resemble running an independent business rather than working under a sponsor, immigration may judge that your work falls closer to the Business Manager category, which requires its own visa.
In short:
- Work Visa + one main sponsor + some freelance work = often acceptable
- Freelance-only, gig-style work with many individual clients = may be treated as business operation
Understanding this distinction is essential before changing your work style.
✔ Example
An Engineer visa holder can take coding or system development projects from several companies, even overseas clients.
❌ Example
An Engineer visa holder cannot start a café, run an online shop importing goods, or manage artists — these fall outside the permitted activities.
If your freelance income aligns with your visa category, this path is often the most realistic for many people living in Japan.
Running your own business = Business Manager Visa
If you want to operate your own company in Japan—such as selling products, running an agency, hiring staff, or managing a business—you must change to a Business Manager Visa.
However, major reforms is in effect since October 2025.
Under the new rules, which took effect on October 16, 2025, the main requirements are:
- Capital or total investment of at least 30 million JPY
- At least one full-time employee who resides in Japan (other than the manager)
- At least 3 years of management experience or a relevant master’s degree
- Japanese language ability around B2 level (JLPT N2) for either the manager or a full-time staff member
- A business plan that has been reviewed by an approved professional
For details, see our Business Manager Visa 2025 revision guide.
These changes make the Business Manager Visa no longer practical for small, one-person businesses or early-stage freelancers.
If your goal is simply to work independently without building a corporation with employees and large capital, the Business Manager Visa is no longer a realistic option.
What most foreigners actually do
For the majority of foreign professionals in Japan, the most sustainable path is:
Stay on your current work visa and operate as a freelancer within the scope of your permitted field.
This approach allows you to:
- Work with multiple clients
- Maintain flexibility
- Avoid unnecessary immigration risks
- Keep stable residency
- Grow your income without forming a Japanese corporation
This is why many IT engineers, designers, marketers, consultants, and creators in Tokyo continue working under their existing visa rather than switching to Business Manager.
Requirements for Freelancing on a Work Visa in Japan
Even if your freelance activities fall within your permitted visa category, Immigration requires strict compliance with income, documentation, sponsorship, and reporting rules.
The following points are essential.
1. Financial Stability Is Strictly Evaluated
The Immigration Bureau must confirm that your income is stable enough to support your life in Japan.
✔ Client contracts are required
Since you do not have an employer, contracts with Japanese clients serve as substitutes for employment contracts.
These contracts should:
- Be in writing
- State the duration (6 months or longer is strongly preferred)
- Clearly describe the work content
- Specify compensation terms
✔ Monthly income expectations
As a general rule, based on practical experience, cases with a stable income below around 200,000 JPY per month often face difficulties in getting approved. There is no officially published minimum amount, but Immigration will look closely at whether your income is sufficient and stable enough to cover your living expenses in Japan.
You may combine multiple contracts to reach this amount.
In short, a digital-nomad-style income with large fluctuations is not what Immigration expects for a work visa.
2. Freelancing Status Does Not Remove the Sponsorship Requirement
Even if you are a freelancer, the visa application form still requires a Japanese sponsor.
This section cannot be skipped.
- At least one client must agree to act as your sponsor
- Sponsors typically sign the “Letter of Guarantee” section of the visa application
- Relying solely on individual clients makes the process more challenging
Immigration wants to know that someone in Japan can be a point of contact and responsible party.
3. Reporting Changes in Contracting Parties
If you:
- End a contract
- Start a new contract
- Change the number of clients
- Change contract terms
…you are legally required to notify the Immigration Bureau.
Notifications can be submitted:
- At the Immigration counter
- By postal mail
- Online (the online system is available but somewhat complex)
Relevant Links:
Relevant links: (MOJ pages)
4. Tax Procedures: Filing Your Business Registration (開業届)
If you begin freelance activities in Japan, you must submit a Business Registration (開業届) to your local tax office within one month.
This registration allows you to choose between:
✔ White Tax Filing（白色申告）
- Simple filing
- Limited deductions
✔ Blue Tax Filing（青色申告）
- Requires proper bookkeeping
- Offers deductions up to ¥650,000
- Strongly recommended for freelancers
Registering your business is not optional — it is required for tax compliance.
5. Social Insurance: Pension and Health Insurance
When freelancing, you enter Japan’s national self-employment insurance system.
National Pension（国民年金）
- Mandatory for all freelancers
- Monthly premium in 2025: ¥17,510
Health Insurance
You have two choices:
- National Health Insurance（国民健康保険）
- Premium based on previous year’s income
- Employee Health Insurance Continuation（任意継続）
- Possible for up to 2 years after leaving a company
- Often beneficial for people with high past income
Immigration expects you to stay compliant with both pension and insurance obligations.
Alternative Pathway: Japan’s Digital Nomad Visa
If your work is fully online and your clients are outside Japan, the Digital Nomad Visa may be more suitable than managing a company.
You must generally show an annual income of at least 10 million JPY and have private insurance with at least 10 million JPY coverage.
The Digital Nomad framework allows you to:
- Live temporarily in Japan
- Work remotely for overseas clients
- Avoid finding a Japanese employer
- Stay without forming a company
However, note that:
- It is not a long-term residency status
- It does not lead to a work visa or permanent residency
- You cannot work for clients inside Japan under this scheme
Still, for remote workers and online freelancers, it’s often the most practical option.
Frequently Asked Questions
Q1: Can foreigners register as sole proprietors (個人事業主)?
Yes. But registering as a sole proprietor does not give you a visa.
Immigration only cares whether your actual activities match your visa category.
Q2: Can I freelance on an Engineer / Specialist in Humanities / International Services visa?
Yes, as long as the work content fits within your category.
Q3: Can I run a business while holding a work visa?
No. You cannot operate a company or manage staff unless you have a Business Manager Visa.
Q4: Can I work with overseas clients from Japan?
Yes, if the work content matches your visa category. But still, you will need at least one Japanese company sponsoring your status.
(If Digital Nomad Visa, all of your clients need to be outside Japan.)
Q5: Does freelancing affect my future permanent residency application?
Most likely.
Immigration mainly reviews stable income, tax payment history, and visa compliance.
Key Points to Keep in Mind
Freelancing in Japan requires careful management of your visa status, taxes, and social insurance. Early preparation and professional advice can help you avoid pitfalls and ensure a smooth transition.
Ready to Start Your Freelance Journey in Japan? 🚀 Don’t let visa complexities hold you back. Book a free 30-minute consultation with our immigration experts today and get clear, actionable advice tailored to your situation!
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