We present the main advantages and issues to consider for those investors who want to open a business in Japan as a foreigner. The general company incorporation process, which refers to the steps required for starting a company in Japan can be found here.
| Quick Facts | |
|---|---|
| Entry requirements for EEA citizens and non-EEA citizens | Generally no visa is required for short-term entries for EEA nationals. For non-EEA nationals, this depends on nationality, as they can be subject to visa exemptions for short-term stays. |
| Solutions for foreigners interested in opening a business in the Philippines offered our team | Yes, full incorporation solutions |
| Mandatory residency required to open a company in Japan as a foreigner | Not the case |
| Residency by investment scheme available | The Business Manager Visa |
| Minimum investment amount for residency by investment (if applicable) | 5 million yen. Other requirements apply. |
| Relocation with family members for foreign investor residence permit holders | Possible, if the family member obtains a dependent visa. |
| Types of companies available to foreign investors | Limited liability company (GK) and joint-stock company (KK) |
| Full foreign ownership permitted (Yes/No) | Yes |
| Operation costs in Japan | Company formation costs (starting at JPY100k for the GK company), notary fees, office costs (see below), other business-specific costs depending on industry. |
| Payroll costs in Japan | The employer’s social security contributions vary. The highest combined employer’s contribution is around 16% of the salary. |
| Accounting costs (approx.) | Can start at JPY 55,000 for monthly bookkeeping. |
| Employment costs (minimum salary) | Minimum hourly wages vary. An average hourly wage is around JPY1,054 |
| Office rental costs (approx.) | From about JPY 100,000 per month in Tokyo (Shinjuku), varying according to area. |
| Number of companies incorporated each year (approx.) | As per the most recent official business survey, there were 3,684,049 businesses in Japan in June 2021. |
| Regulatory environment makes it easy to open a business in Japan as a foreigner (Yes/No) | Yes |
Table of Contents
Reasons to invest in Japan
Some of the most important reasons to set up a business in Japan as a foreigner include:
- Strong trade: Japan ranks in the 5th place worldwide per trade volume, according to Trade Volume ranking 2023;
- Large economy: investors who open a business in Japan as a foreigner enter the world’s 4th largest economy (according to data summarised by the Japan External Trade Organization, backed by World Bank figures);
- Good investment confidence: Japan ranks 1st place in Asia in terms of Foreign Direct Investment Confidence, as per data summarized by the Japan External Trade Organization using the 2025 Kearney Foreign Direct Investment Confidence Index;
- An innovative business environment: Japan encourages innovation and has a diverse startup ecosystem;
- A highly educated workforce: hiring highly qualified staff is easy in Japan as the country has a high number of researchers and engineers.
In addition to the multiple business advantages briefly listed above, investors who move to Japan also enjoy a good living environment, excellent transportation and a low crime rate.
The decision to open a business in Japan as a foreigner is an important one and an essential step during this process is to acquire the right type of visa for investment purposes.
What to consider before opening a business in Japan
Japan is well-known for its high-tech economy and industry and a focus on quality and innovation. Its service-dominated economy presents various opportunities for investment which is encouraged by the authorities.
Although the language barrier is of concern for some entrepreneurs who target the market, English is used across many different industries and when doing business. Furthermore, enlisting the assistance offered by a local company specialized in incorporation matters, such as our agents in Japan, is an option for foreign investors.
Essential information for investors who open a business in Japan as a foreigner
How easy is it to effectively start a business in Japan? The country is known for its competitiveness, professionalism and propensity to adhere to rules and regulations. But this does not mean that the general process to open a business in Japan as a foreigner is inaccessible. We look at a set of advantages for foreign nationals who set up a business in the country:
- No minimum capital is required to open a branch in Japan. Other conditions apply to opening a subsidiary, which include the ones for the Business Manager visa (if the applicant is interested in this);
- The costs associated with starting a business include registration fees for entering the company in the Commercial Register, however, some required steps are free of charge;
- The median time to open a company is around 11 days, provided that all the submissions are in order and no follow-up for changing the documents is required by the authorities.
Some of the costs for those who start a business in Japan as a foreigner include:
- The company registration costs, estimated at JPY 2,000 (not including the company seal or professional fees for company registration);
- Visa costs: which depend on the type of business visa;
- Office-related costs, such as rent and the initial deposit.
Please keep in mind that the costs above should only be used for informative purposes. The overall expenses will also differ depending on the Japanese city you choose to do business in.
Contact us for more information on how you can open a business in Japan as a foreigner.