
There are three ways for a foreigner who is managing a corporation overseas to develop business in the Japanese market:
- establish a representative office
- establish a Japanese branch office
- establish a subsidiary (or Japanese corporation)
A representative office is for conducting market research in Japan and is prohibited from conducting business activities (profit-making activities).
In addition, if a foreigner wishes to start a new business in Japan, he/she must establish a corporate company and obtain a visa. The newly established “Start-Up Visa” can be applied for at designated administrative offices (see below), making the process relatively easy for foreigners who wish to start a business in Japan.
Below is a list of visa types (4-month Business Administration Visa, Start-Up Visa), what is required to establish a company, types of corporations, where to register a company, and other information necessary for foreigners to establish or start a company in Japan.
Contents
- 1 What you need to do to start a business (register a corporation) in Japan
- 1.1 Register your company address
- 1.2 Must conform to one of the following conditions
- 2 What kind of visa is required for a foreigner to start a business in Japan?
- 3 What is a 4-month Business Management Visa and Start-Up Visa?
- 3.1 How to obtain a 4-month business administration visa?
- 3.2 How to obtain a Start-Up Visa?
- 4 If you currently have another visa
- 5 Types of Japanese Corporations
- 5.1 Types of Businesses Requiring Approval
- 6 To establish a corporation in Tokyo
- 6.1 The Tokyo One-Stop Business Establishment Center
- 6.2 The Tokyo One-Stop Business Establishment Center Office
- 6.3 Foreign Residents Support Center(FRESC)
- 7 English website to help foreigners setting up a company or starting a business in Japan
- 8 Who we are
What you need to do to start a business (register a corporation) in Japan
Register your company address
It is basically difficult to use a virtual office, rental office, or home address for registering a company address, so it is preferable to register an office address with a firm lease agreement.
Note that JETRO offers furnished office space, which can be used free of charge for 50 days if the conditions are met.
Must conform to one of the following conditions
- The business is operated by two or more full-time employees residing in Japan other than those engaged in the management or administration of the business.
- The amount of capital or the total amount of capital contribution is 5,000,000 yen or more.
- The business must be of a scale equivalent to the above two items.
※From the Ministerial Ordinance establishing the criteria set forth in Article 7, paragraph (1), item (ii) of the Immigration Control and Refugee Recognition Act.
For further details, please contact the following organizations.
What kind of visa is required for a foreigner to start a business in Japan?
A visa is required for foreigners to start a business in Japan. If you do not already have a Japanese visa, you will need a “4-month business administration visa” or a “Start-Up Visa” issued by some areas such as Tokyo and Fukuoka City.
If you already have another visa, you need to find out in advance whether you can establish a company with your current visa or whether you will need a new visa.
It is possible to conduct preparatory activities for a business even with a 90-day visa for a short-term stay, as long as the activities are not profit-making.
For more information, please visit the Ministry of Foreign Affairs of Japan.
What is a 4-month Business Management Visa and Start-Up Visa?
How to obtain a 4-month business administration visa?
The “4-month Business Management Visa” is a newly established visa in April 2015.
If you can provide solid proof that you are prepared to start a business in Japan, and if approved, you can obtain this visa and start your business immediately after your arrival in Japan.
This visa is obtained prior to your arrival in Japan, so before coming to Japan, you must prepare for this visa by submitting the necessary documents to the Japanese Immigration Office from abroad.
As the name suggests, the “4-month business administration visa” is valid for 4 months and allows the applicant to do the following
- Obtain a certificate of residence (a registered address is required)
- Open a bank account
- Register a corporation.
If you use the four-month period of the visa to establish a company in Japan and obtain permission, you can extend the visa to a one-year Business Management Visa.
How to obtain a Start-Up Visa?
The Start-Up Visa is intended to increase the number of foreign entrepreneurs and to facilitate their procedures by easing regulations.
The visa is issued in some areas approved by the government, such as Tokyo and Fukuoka City. The visa is valid for 6 months.
As of March 2022, it is in effect in Tokyo, Hiroshima Prefecture, Aichi Prefecture, Sendai City, Niigata City, Imabari City, Fukuoka City, and other areas.
To obtain this visa, you must first submit the required documents, including a business plan, to one of the above regional offices. All documents must be completed in Japanese.
If your documents pass the screening, a letter of recommendation will be issued. The letter of recommendation is then submitted to the immigration office to apply for the visa, and if there are no problems, the visa is issued.
As mentioned above, this visa is valid for 6 months, which is 2 months longer than the 4-month Business Management visa.
During this time, you can make thorough preparations for the establishment of your company. If you then pass the examination, the period will be extended for another 6 months.
The following is a quote from the Tokyo Metropolitan Government’s official website.
When a foreigner establishes a business in Japan, he/she is required to obtain a “Management/Administration” status of residence.
To obtain this status, under the current system, in addition to establishing an office, the foreigner must meet the requirements of employing at least two full-time workers or investing at least 5 million yen in Japan at the time of entry into Japan.
In order to meet these requirements, preparatory activities such as securing a business partner and signing an office lease contract must be conducted prior to entry, making it extremely difficult for a foreigner to establish a business on his/her own without a domestic partner.
Under the special zone scheme, foreign nationals will be granted a special six-month status of residence by the Tokyo Metropolitan Government, which will allow the Tokyo Metropolitan Government to verify their business plan, etc. prior to screening by the Immigration Bureau.
By utilizing this six-month period, start-up personnel will be able to conduct various preparatory activities while in Japan.
In addition, we will provide unique support through the “Business Concierge Tokyo” so that foreign nationals can renew their status of residence after six months of fulfilling the requirements.
The Start-Up Visa is valid for 6 months and allows you to do the following.
- Obtain a certificate of residence (must have an address that can be registered)
- Open a bank account
- Register a company
For more information about Start-Up Visa, please contact the following organizations.
- Tokyo Metropolitan Government
- Aichi Prefecture
- Hiroshima Prefecture
- Sendai City
- Imabari City
- Niigata City
- Fukuoka City
- Other areas (Hokkaido, Osaka, etc.)
If you currently have another visa
If you already have a visa and are residing in Japan, you may establish a company (start a business) while your visa is still valid. However, you may need to change the type of visa afterwards.
The procedure, whether or not you are obliged to change your visa, and how the change will affect you will depend on the visa you currently have.
We recommend that you consult with the Immigration Bureau or a professional before establishing a company.

Types of Japanese Corporations
Japanese corporations are divided into four types.
They are joint-stock companies, limited liability companies, general partnership companies and limited partnership companies. Many companies choose either a joint stock company or a limited liability company.
A Godo Kaisha is a renaming of a “Limited Liability Company” and currently limited liability companies cannot be registered.
If the company is incorporated in a foreign country, it is possible to establish a Japanese branch office.
Types of Businesses Requiring Approval
Special approval may be required to open a business.
Food handlers, travel agents, staffing agencies, hotels, liquor distributors, financial institutions, and pharmaceutical companies may require special licenses when starting a business.
For more details, please refer to the JETRO page below.
To establish a corporation in Tokyo
The Tokyo One-Stop Business Establishment Center
At the Tokyo One-Stop Business Establishment Center, you can do everything you need to start business in a single visit.
You can also have a small business consultant provide free consultation and check your documents.
Necessary Documents for application are as follows.
- Certificate of Incorporation
- Registration of incorporation
- Taxation (national tax, metropolitan tax)
- Immigration
- Employment insurance
- Labor insurance
- Health insurance, employee’s pension insurance
The Tokyo One-Stop Business Establishment Center Office
Akasaka ARK Mori Building
Ark Mori Building, 1-12-32 Akasaka, Minato-ku, Tokyo
Japan External Trade Organization (JETRO) Headquarters, 7F TEL: +81-3-3582-4934
Shibuya Satellite Center
Shibuya Dogenzaka Tokyu Building 1F, 1-10-8 Dogenzaka, Shibuya-ku, Tokyo
Shibuya Satellite Center TEL: +81-3-5489-4630
Marunouchi Satellite Center
2-1-1 Marunouchi, Chiyoda-ku, Tokyo
Tokyo Founders’ Station 2F, Meiji Yasuda Seimei Building TEL: +81-3-6259-1882
Foreign Residents Support Center(FRESC)
The Foreign Residents Support Center (FRESC) in Yotsuya, Tokyo, houses the following eight organizations on one floor.
- Immigration Services Agency of Japan
- Japan External Trade Organization (JETRO)
- Tokyo Immigration Bureau
- Visa Information, Ministry of Foreign Affairs
- Tokyo Legal Affairs Bureau, Human Rights Protection Department
- Tokyo Labor Bureau, Special Consultation and Support Office for Foreign Nationals
- Japan Legal Support Center (Ho Terasu)
- Tokyo Employment Service Center for Foreigners
FRESC
Yotsuya Tower 13F, 1-6-1 Yotsuya, Shinjuku-ku, Tokyo
TEL: +81-3-5363-3013
Access: 1 min. walk from Yotsuya Station
English website to help foreigners setting up a company or starting a business in Japan
How to Set Up Business in Japan by JETRO
Laws and regulations regarding incorporation.
JETRO Office Space for Free
Free fully furnished office space provided by JETRO. Free for 50 days if you meet the requirements.
Tokyo Employment Consultation Center
- About VISA (Ministry of Foreign Affairs of Japan)
- Start-Up Visa (Ministry of Foreign Affairs of Japan)
- Immigration office
- Japanese Embassies Abroad
- Branch Office and Subsidiary Company
- Comparison of Types of Business Operation
There are other law firms and support companies that have specialists in foreign company formation and start-ups. In some cases, obtaining a visa may be smoother with the assistance of a specialist.
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If you want your business to succeed in Japan, use a Japanese Language Service Provider that is native Japanese speaking and specializes in human translations, like ours.
Again, if you want to succeed in Japan, please contact us now.
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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.
Is starting a business in Japan easy? ›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 company in Japan? ›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.
What is the easiest business to start in Japan? ›- Start a Translation Agency. ...
- English Language School in Japan. ...
- Start a Restaurant. ...
- Practice Alternative Medicine in Japan. ...
- Open a Yoga Studio. ...
- Open a Hotel. ...
- Language Service School. ...
- Start a Tourism Business in Japan.
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.
How do I start a startup in Japan? ›- The 10 steps:
- Step 1: Know what a startup is. ...
- Step 2: Have a relevant reason for being in Japan, and always evaluate location. ...
- Step 3: Use the culture, learn the language. ...
- Step 4: Learn to straddle timezones.
- Step 5: Don't worry about the local economy.
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.
Why is it difficult to start a business in Japan? ›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.
Why do companies fail in Japan? ›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.
How long does it take to register a company in Japan? ›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.
How do I get a Japanese business visa? ›- Contact the Embassy/Consulate/travel agency to book an appointment.
- Collect the required documents for a Japan Business Visa (see below). ...
- Submit the documents at the Japanese consular services or the travel agency.
- Wait for the visa to be processed.
- Secom (360.1 billion yen)
- Seven and I Holdings (374.7 billion yen)
- Fanuc Corporation (405.8 billion yen)
- Keyence (476.6 billion yen)
- SMC Corporation (536.7 billion yen)
- Shin-Etsu Chemical Co (813 billion yen)
- Nintendo (890.4 billion yen / $8.5 billlion)
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.
What is Japan's business like? ›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.
Can a foreigner open a bar in Japan? ›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.
Is Japan good for startups? ›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 ...
How do I register my small business in Japan? ›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.
What are the risks of doing business in Japan? ›- Political.
- Regional and international issues.
- Economic.
- Human rights, transparency and corruption.
- Crime.
- Terrorism and protective security.
- Intellectual property.
- Natural disasters.
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.
Do you think it is easy to run a business in Japan for a foreigner why? ›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”.
Why is Japan the best country to start a business? ›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.
Why you should start a business in Japan? ›- Large Stable Economy. ...
- Attracting Foreign Businesses & Foreign Direct Investment (FDI) ...
- Innovative People. ...
- The Rise of Asia. ...
- Abenomics. ...
- Japan Still Offers Excellent Business Opportunities. ...
- Partner with Professionals to Navigate Local Regulations. ...
- Outsource Your Payroll to Reduce Costs in Japan.
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.
Why did Walmart fail in Japan? ›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.
Is uber successful in Japan? ›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.
How can I get permanent residence in Japan? ›- You have been living in Japan for a sufficient period of time. ...
- You display good conduct. ...
- You can support yourself financially. ...
- You have paid Income Tax and other contributions in Japan.
Probably one of the four main types: tourist, immigration, student, or work.
Is Japan issuing visas right now? ›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.
Who is the richest in Japan? ›- Tadashi Yanai; US$23.6 billion.
- Takemitsu Takizaki; $21.6 billion.
- Masayoshi Son; $21.1 billion.
- Nobutada Saji; $9.3 billion.
- Takahisa Takahara; $6.4 billion.
- Shigenobu Nagamori; $4.6 billion.
- Hiroshi Mikitani; $4.4 billion.
- Masatoshi Ito; $4.35 billion.
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.
What is Japan's most valuable company? ›Toyota has retained its place as the most valuable brand in Japan, with a brand value of $28.4 billion.
Is Japan a good country to invest in? ›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.
What makes Japan successful? ›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.
What is a women's salary in Japan? ›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.
What language is business conducted in Japan? ›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.
How can I get Japan business visa? ›- Contact the Embassy/Consulate/travel agency to book an appointment.
- Collect the required documents for a Japan Business Visa (see below). ...
- Submit the documents at the Japanese consular services or the travel agency.
- Wait for the visa to be processed.
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? ›
- You have been living in Japan for a sufficient period of time. ...
- You display good conduct. ...
- You can support yourself financially. ...
- You have paid Income Tax and other contributions 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.
Is Japan issuing visas right now? ›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.
What are the 4 types of visa? ›Probably one of the four main types: tourist, immigration, student, or work.
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.
How can a foreigner make money in Japan? ›- English Instructor. This may be one of the most popular side-jobs taken by foreigners living in Japan. ...
- Social Media. ...
- Game Localization Testers. ...
- Freelance Translator. ...
- Konbini Staff. ...
- Uber Eats Delivery Rider. ...
- J-Blogger or Vlogger. ...
- Part-Time Work.
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.
Is freelancing allowed in Japan? ›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.