How to set up a company or start a business in Japan for a foreigner? (2023)

FAQs

Can you start a business in Japan as a foreigner? ›

Can foreigners set up a business in Japan? Setting up a business in Japan is not only reserved for Japanese nationals. Foreign nationals can also start a business in Japan. All they need to do so is a personal bank account in Japan or a director/shareholder with such an account and an address for registration.

Opening a business in Japan is not easy! I have personally founded companies in Europe and other parts of Asia, and I have found that Japan is particularly difficult because: The bureaucracy is all in Japanese.

How much does it cost to set up a Japanese corporation? It will take at least 200,000 yen for a stock company (kabushiki gaisha) and at least 60,000 yen for a joint company (goudou gaisha). The cost of establishment varies depending on whether you are setting up a stock company or a joint company.

Although establishment with a capital of 1 yen is possible under the Companies Act of Japan, you need to invest 5 million yen or more if you are entitled to a "Business Manager" visa status.

Because of Japan's size, substantial investments are necessary, and therefore the inherent risks are also large: you either win big, or lose big. A common reason for failure of foreign companies in Japan is that investments are too low.

Reasons include: Japanese customers can be very demanding, and often have quit different tastes and needs than Western customers. Therefore in many cases western companies must redesign or redevelop products in order to succeed with Japanese customers.

When companies insist on spending an amount in Japan they simply feel is sufficient based on costs in their own market, they fail without exception. One of the biggest contributing factors to the cost of doing business in Japan is simply the high cost of labor.

The entire process of incorporation takes approximately 2 to 4 weeks. The costs are dependent on the type of business structure you decide on and whether you are a foreign entity starting a company in Japan. The process is administered by the Japan Business Registry.

How long does it take to start a business in Japan? ›

If your business requires some sort of professional license to operate in Japan, it could take 2 to 3 months before being able to fully operate the business. We support you with setting up business in Japan. For personalized advice, click here.

Import and Export was the most popular business for foreigners to launch; areas covered included food, clothing, furniture, scrap metal, commodities, cars and machinery. Restaurant management is another popular route and in relation to starting other businesses in Japan, is relatively easy to do.

Japan is a more relationship-oriented culture than Australia, particularly when it comes to doing business. Japanese want to know and trust someone before they do business with them. Relationships are developed through informal social gatherings and generally involve a considerable amount of eating and drinking.

While Japanese citizens can open a restaurant on their own and be the owner, chef, waiter, safety manager, accountant, etc. at the same time, foreigners cannot do so.

The strong work ethic found in the nation on average, entrepreneurial spirit and the availability of VC funding mean that there are many top startups in Japan. Japanese startups have a great ecosystem, which is consistently valued to be higher than the global average- which also contributes to the great success seen in ...

In order to become a sole trader in Japan, an application must be filed with the Trade Register in Japan. The application can be filed online or sent through the post office. The business owner will also need to set up a bank account and register for tax purposes.

It ranks at No. 34 for ease of doing business, according to World Bank Group. Many companies find it essential to have local help and representation because of the country's relationship-centered business climate, which makes it difficult for outsiders to break in.

Is Japan business friendly? ›

Japan is business-friendly where it comes to all formalities; Japan ranks 29th in the world when it comes to ease of doing business.

The “gaijin factor” Starting up your own business is hard enough in your home country, but in Japan with a different language, business customs and market place, it is twice as hard. Having said that, there can also be twice as much opportunity for foreigners as a result of the “gaijin factor”.

Japanese companies often exhibit a global outlook and a willingness to invest long-term in viable products and services. Japan is synonymous with quality and innovation and this goes hand-in-hand with Japanese companies' commitment and loyalty to business partners.

Since establishing a local office in 2014, Uber has had difficulty growing in Japan. The cheap and convenient public transport means that ride-sharing is unnecessary, and the huge number of local restaurants and convenience stores means that food delivery is an extravagance reserved for pizza parties.

Japan was the world's second-largest economy after the U.S. in 2002 when Walmart decided to invest in Seiyu. But the U.S. giant entered with neither an overall strategy nor in-store tactics to achieve much of a presence in a country faced with an aging population and declining purchasing power.

Locals tell us that although Japan does have Uber, it's not super well-known and it's definitely not the most convenient option when it comes to traveling around the more sprawling places in Japan, namely cities like Kyoto or Tokyo.

Probably one of the four main types: tourist, immigration, student, or work.

Currently, all foreign nationals who wish to newly enter Japan need to apply for a visa except for those with re-entry permit. Please note that due to the impact caused by the COVID-19 pandemic, the visa approval procedure may take longer than usual. Your understanding and cooperation are greatly appreciated.

How much is Japan visa fee? ›

Fees must be paid for the issuance of visas. The fees are about 3,000 yen for a single-entry visa, 6,000 yen for a double-entry or multiple-entry visa, and 700 yen for a transit visa. Fees are collected in the currency of the country (region) in which the Embassy / Consulate General is located.

According to Risk Monster, Nintendo is the richest company in Japan in 2020. Nintendo reportedly has a net worth of 890.4 billion yen, or approximately $8.3 billion USD as of this year.

Toyota has retained its place as the most valuable brand in Japan, with a brand value of $28.4 billion.

The Global Competitiveness Report for 2019 ranked Japan the sixth most globally competitive country in the world, citing the nation's large market size, business sophistication, quality of local suppliers, and strong international distribution controls as some of its most outstanding business features.

It has a well-educated, industrious workforce and its large, affluent population makes it one of the world's biggest consumer markets. Japan's economy was the world's second largest (behind the US) from 1968 until 2010, when it was overtaken by China.

The average monthly wage for female full-time workers in Japan amounted to about 253.6 thousand Japanese yen in 2021, which represented an increase of over 20 thousand yen compared to 2012. The breakdown by age group showed that the average income was highest among women aged 50 to 54 years old.

Japanese is the only official language. Since WWII, all Japanese have studied English at school and English is spoken by growing numbers. But few people other than officials, academics and businessmen who are in frequent contact with foreigners can speak it well.

In order to become a sole trader in Japan, an application must be filed with the Trade Register in Japan. The application can be filed online or sent through the post office. The business owner will also need to set up a bank account and register for tax purposes.

How can I get permanent residence in Japan? ›

Foreign companies wishing to engage in continuous transactions in Japan must register in the country (see Article 818 of the Companies Act). To do so, they must at least register (1) the appointment of a representative in Japan, (2) the establishment of a branch office, (3) a Japanese corporation, or (4) a partnership.

Currently, all foreign nationals who wish to newly enter Japan need to apply for a visa except for those with re-entry permit. Please note that due to the impact caused by the COVID-19 pandemic, the visa approval procedure may take longer than usual. Your understanding and cooperation are greatly appreciated.

Probably one of the four main types: tourist, immigration, student, or work.

Fees must be paid for the issuance of visas. The fees are about 3,000 yen for a single-entry visa, 6,000 yen for a double-entry or multiple-entry visa, and 700 yen for a transit visa. Fees are collected in the currency of the country (region) in which the Embassy / Consulate General is located.

There are two main ways to work for yourself in Japan. The first one (the easiest) is to become a freelancer, also known as a sole proprietor. The second more difficult and financially strenuous route is to start your own business. To start your own business, you will need to secure the Business Manager visa.

Japan does not have a “freelance visa” per-se, or a self-sponsored visa, but if you can prove the income and find a sponsor, you can still work on your own. There are, of course, alternatives. If you have a family-based visa, like a spouse or dependent, this will be much easier.