How to Start a Business in Japan

How to Start a Business in Japan as a Foreigner: 3 Simple Steps

 

Starting a business in Japan as a foreigner may seem complicated, but with the right steps, it’s more achievable than you might think. Whether you want to open a café, launch a tech startup, or offer international services, Japan welcomes entrepreneurs with clear processes and helpful resources. Here’s a quick 3-step guide to get started.

 

Step 1: Get the Right Visa (Business Manager Visa)

 

To legally run a business in Japan, you’ll need an appropriate visa. The most common one for entrepreneurs is the Business Manager Visa.

Requirements:

  • A business office in Japan

  • At least 5 million yen in investment capital (around $35,000 USD), or

  • At least two full-time employees (Japanese residents)

 

If you’re already in Japan on a different visa (like a student visa), you’ll need to change your status. Consulting an immigration lawyer or administrative scrivener (gyoseishoshi) can help make the process smoother.

 

Step 2: Choose Your Business Structure and Register Your Company

 

The two most popular types of companies for foreigners in Japan are:

  • KK (Kabushiki Kaisha) – similar to a corporation

  • GK (Godo Kaisha) – similar to an LLC

 

GK is often easier and cheaper to set up for small businesses or startups.

Basic setup steps:

  1. Decide your business name and address

  2. Prepare and notarize the Articles of Incorporation (for KK only)

  3. Open a personal bank account in Japan

  4. Deposit your capital

  5. Register your company at the Legal Affairs Bureau

 

The whole process usually takes about 2–4 weeks.

 

Step 3: Set Up a Business Bank Account and Start Operating

 

Once your company is registered, you can open a corporate bank account (required to receive payments and manage company funds). Some banks may have stricter requirements for foreign owners, so using online banks may be easier.

Next, register for taxes and social insurance, especially if you hire employees. You may also want to hire a tax accountant to help with Japanese filing requirements.

 

Final Tip: Use Local Support Services

 

There are many free support centers in Japan offering multilingual advice for foreign entrepreneurs. For example:

  • JETRO (Japan External Trade Organization)

  • Startup Visa programs (available in cities like Fukuoka and Tokyo)

  • Local business incubation hubs

 

Starting a business in Japan is a journey—but not one you have to take alone.

 

Ready to take the leap? Japan is full of opportunities for foreign founders who bring fresh ideas and international perspectives.