start a company in Japan

How to Start a Company in Japan

Diving into the business world of Japan may seem intimidating, especially if you’re a foreigner trying to enter the market. You may be asking yourself: “how to start a company in Japan as a foreigner?” or “how to open a business in Japan?” We will be breaking down the essentials by answering the crucial “how’s” of starting a company in Japan. 

This guide will go over the specifics, from understanding the current business landscape, to the intricate details of funding your company and recruiting employees. We want to empower you with the knowledge and insights needed to smoothly set the wheels of your enterprise in motion.

However, if you’re in the preliminary stages of your journey, desiring an introduction to the general overview of setting up a business, we recommend checking out our recent article on Setting up a company in Japan. It provides a bird’s-eye view on the process, priming you with a broader understanding before delving into the specifics. We also recommend checking out our Foreigner’s Guide to Japan Market Entry and Guide to Doing Sales in Japan.

To further enrich your understanding and provide you with comprehensive insights, this guide will also reference numerous other articles and resources throughout. This will offer you a wider range of information to delve into, supporting every stage of your journey in starting a company in Japan.

start a company in Japan

What are the current market and business opportunities in Japan?

Japan, the third-largest economy globally, offers a myriad of business opportunities and potential for growth. However, to truly succeed in this vibrant market, understanding its current trends, consumer preferences, and identifying potential business opportunities is crucial. In this section, we’ll delve into these aspects to equip you with the knowledge needed to make informed decisions about your business venture.

Researching and identifying potential business opportunities

Before embarking on your business journey in Japan, it is important to conduct thorough research to identify viable business opportunities. Japan is known for its technological advancements, robust manufacturing sector, and a strong service industry, which are potential areas for business.

However, it’s essential to go beyond the surface level. Start by analyzing the needs of the Japanese consumer. Keep an eye on industry reports and economic forecasts, and consider seeking advice from business consultancies that specialize in the Japanese market.

For a detailed guide on conducting effective market research in Japan, refer to our comprehensive article on Market Research in Japan. This resource will provide valuable insights into the Japanese market, aiding you in identifying lucrative business opportunities.

Looking to enter the Japanese market?

Download the free e-book from Tyson Batino, 3x founder and CEO of Scaling Your Company

Download our Japan Market Entry Guide Here

Something went wrong. Please check your entries and try again.
Background Removal (21)

Current market trends and consumer preferences

Understanding the prevailing market trends and consumer preferences in Japan is integral to any business endeavor in the country. Let’s delve into some key areas that are currently shaping Japan’s business landscape and offering promising opportunities for entrepreneurs.

Health tech

Japan’s Health Tech industry, currently undergoing a significant transformation, presents a fertile ground for Health Tech innovations. With an increased demand for remote patient monitoring, telemedicine, and AI-assisted diagnostics, the market is ripe for new and innovative solutions. Particularly, the city of Kobe is taking the lead in pushing the boundaries of medical and health technology, creating a cutting-edge healthcare environment.

city in Japan

The Japanese government is supporting this shift in preferences by actively promoting a digital transformation in healthcare. The initiatives focus on enhancing patient care and improving medical institutions’ efficiency with Electronic Health Records (EHRs) and integrated health data management platforms. This drive towards digitization is highly evident in Kobe’s robust healthcare technology ecosystem.

Innovations in areas such as robotic nursing care and home medical devices are also gaining traction. Government-led visions, like the Japan Vision Health Care 2035, aim to create an environment conducive for Health Tech growth, making Japan a promising market for both local and foreign startups in this sector. A good example is the multinational pharmaceutical and biopharmaceutical company, AstraZeneca.

Agriculture tech

Facing unique challenges such as limited arable land and an aging farming population, Japan is turning towards Agriculture Tech (AgriTech) for solutions. Consumer concerns about food safety and sustainability are driving demand for innovative farming technologies. The city of Sapporo is emerging as a thriving startup hub, especially within the AgriFood sector, signaling its commitment to innovating and improving food and agriculture, among other focus areas.

city in Japan

The government is encouraging this shift towards AgriTech with various initiatives including financial incentives for tech investments in agriculture. Additionally, trends like vertical farming and drone technology for crop management are gaining momentum, shaping the future of Japanese agriculture. In this landscape, Sapporo has positioned itself as a catalyst for startups, with many AgriTech ventures sprouting in the city.

Big government subsidies for startups

The Japanese government recognizes the value startups bring to the economy and has initiated massive support for them. Starting from 2023, the government has started offering substantial subsidies to startups.

Key support measures include funding aids, tax breaks, and the creation of startup hubs and incubation centers, facilitating a nurturing environment for startups to thrive and grow. These actions significantly alleviate financial burdens for new businesses and provide much-needed resources and mentoring opportunities.

The supportive landscape makes Japan an increasingly attractive destination for entrepreneurs, especially those venturing into tech-driven sectors. However, understanding the full scope of available resources and how to leverage them effectively can be challenging. For an in-depth exploration of the support ecosystem and practical advice on scaling your venture in Japan, refer to our comprehensive guide on Startups in Japan.

With the growing consumer demand, supportive government policies, and the emerging technological innovations, Japan’s AgriTech sector presents promising opportunities for businesses aiming to contribute to the transformation of the agricultural landscape.

Decreasing population 

Japan’s demographic trend of a shrinking population, particularly among the youth, presents unique market opportunities.The rise in the elderly population is driving demand for services tailored towards seniors, spanning healthcare, finance, and technology sectors.

However, the decreasing youth population also implies potential labor shortages. Businesses providing automation solutions to fill these labor gaps could see significant growth. In essence, understanding these demographic shifts and adjusting business strategies accordingly can be key to navigating and succeeding in the Japanese market.

Osaka Expo 2025

The Osaka Expo 2025 poses as an unprecedented business opportunity. The expo’s theme, “Designing Future Society for Our Lives”, and its sub-themes: Saving Lives, Empowering Lives, and Connecting Lives, offer a platform for companies providing innovative societal solutions. With the event set to draw millions of visitors, it can act as a launchpad for businesses, especially those aiming to penetrate or reinforce their position in the Japanese market. Businesses aligning with the expo’s vision can expect high visibility and networking opportunities, making it a vital time to strategize their involvement.

city in Japan

Smart cities

The concept of Smart Cities in Japan has gained momentum, with corporations and cities competing to create innovative urban environments. Corporations invest in IoT, AI, and Big Data analytics for smart solutions. Cities deploy advanced infrastructure and sustainable practices to enhance citizens’ quality of life, fostering innovation and business opportunities.

Public-private partnerships drive the smart city movement in Japan. Collaborating, corporations and cities integrate technology for efficient urban management. To capitalize on this trend, businesses should understand each city’s needs and tailor solutions accordingly. By leveraging advanced technologies and partnering with local governments, companies contribute to sustainable and connected urban environments, meeting market demand for smart city solutions.

Thriving industries or sectors for foreign entrepreneurs

Additionally, there is a range of thriving industries and sectors that present unique opportunities for foreign entrepreneurs to establish successful businesses. Here are some sectors particularly favorable for foreign entrepreneurs:

  • Technology and innovation: AI, IoT, robotics, cybersecurity
  • E-commerce and digital services: Online services, cross-border trade opportunnities
  • Healthcare and medical technology: Medical devices, telemedicine, innovative healtare
  • Tourism and hospitality: Travel experiences, accommodation services
  • International education and language services: Language schools, study abroad programs
  • Sustainable and green technologies: renewable energy solutions, eco-friendly products

By leveraging your international background, cultural insights, and expertise, you can bring fresh perspectives and innovative solutions to these thriving industries. With the right approach and a keen understanding of Japan’s business environment, foreign entrepreneurs can thrive in these sectors and make a significant impact in Japan’s economy.

However, understanding these trends and preferences is only one side of the equation. The real challenge lies in effectively entering the market and aligning your products or services to these trends. For more guidance on this aspect, check out our Guide to a Market Entry Specialist in Japan, as well as our Foreigner’s Guide to Japan Market Entry and podcast episode Intro to Japan Market Entry with Maor Shwartz. These resources provide invaluable strategies to effectively penetrate the Japanese market as a foreign entrepreneur, ensuring that your venture aligns with the preferences and demands of the Japanese consumer.

How do you secure funding and finance to start a company in Japan?

One of the most crucial aspects is securing the necessary funding and financing for opening your company. In this section, we will delve into the various funding and financing options that can help fuel your business’s growth.

There are numerous avenues to explore when seeking funding for your company. We will explore a range of options, including bank loans, venture capital, angel investors, crowdfunding, and grants. Understanding the benefits, requirements, and potential risks associated with each option will enable you to make informed decisions based on your specific business needs.

Available Funding and Financing Options

When it comes to funding and financing options for starting a company in Japan, there are several avenues worth exploring. Let’s take a closer look at some of the available funding options:

Bank loans: Banks in Japan offer various loan programs specifically designed for startups and small businesses. Understanding the loan application process, required documentation, and eligibility criteria will help you navigate through the banking system and increase your chances of securing a loan. Our podcast episode on Banking and Loans in Japan with Larry Greenberg will help you navigate through the process of securing loans, from necessary qualifications to repayment terms, providing insights into strategies that can improve one’s chances of loan approval.

Government programs and subsidies: The Japanese government’s support for new businesses through grants, subsidies, and loan programs serves as a critical launchpad for your venture. Identifying government initiatives specific to your industry can lead you to vital financial aids and support. Listen to our podcast episode on How to Get Japanese Government Money for Your Business with Miho Tanaka to learn more about the complexities of securing government funds in Japan. This Tokyo Startup Subsidy List is an excellent reference for available grants and subsidies.

Private financing and venture capital: Private financing, such as angel investors and venture capital have emerged as robust options for entrepreneurs looking to start a company in Japan. Our Guide To Venture Capital in Japan shows that options offer not only the necessary capital but also strategic mentorship to accelerate your business growth. In Japan’s evolving economic landscape, venture capitalists and angel investors are increasingly interested in supporting foreign founders, signaling an exciting shift towards globalized entrepreneurship. See our Japan Investor List of potential venture capital firms and angel investors.

Crowdfunding: Crowdfunding platforms are carving a niche as a viable funding route for those aiming to start a company in Japan. These platforms allow startups to gain traction by connecting with individual investors who contribute to their financial goals. Beyond fundraising, crowdfunding provides a powerful marketing tool, building a buzz and securing early validation for your venture. To get a grasp of this burgeoning space, tune into our podcast Crowdfunding in Japan with Vincent Nicol and read our article on Crowdfunding Products in Japan: How does it work?

Each funding option has its own requirements, benefits, and considerations. Understanding the specific details, application processes, and potential risks associated with each option will help you determine the most suitable financing approach for your new business venture in Japan.

Here’s a table outlining the advantages and disadvantages of each funding and financing option for your new business in Japan:

How do you set up operational infrastructure when you start a company in Japan?

As you plan to start a company in Japan, establishing a robust operational infrastructure becomes a fundamental step. This section aims to guide you through the process, offering insights and strategies on how to build a solid foundation for your business in Japan’s dynamic market. From logistical planning to relationship building, we’ll navigate you through the elements that contribute to a seamless operational structure.

Location selection and business infrastructure setup

Choosing the right location and setting up a solid business infrastructure are fundamental steps when you plan to start a company in Japan. As detailed in our Ultimate Guide to Japanese Offices, these two aspects are interlinked and have a direct impact on your company’s success. This guide offers a comprehensive overview, helping you overcome the complexities of location selection and business infrastructure setup in Japan’s dynamic market. 

Selecting an optimal location for your startup goes beyond just the physical space. You must consider factors such as proximity to potential clients or partners, access to talent, infrastructure availability, and the local business culture. Japan’s diverse regions each offer unique advantages and potential challenges, making it essential to align your choice with your business objectives and target market.

Setting up a strong business infrastructure entails planning your office space, logistics, technology, and administrative systems. Japanese offices are typically designed with efficiency in mind, reflecting the local culture’s emphasis on organization and productivity. Your business infrastructure should mirror these qualities, as well as accommodate your specific needs. You can also watch our seminar about Renting An Office In Japan Seminar with Corey Nedz of Jump Start Abroad to answer your questions about renting an office in Japan as a foreigner.

Steps for business registration and obtaining permits

Starting a company in Japan involves a structured process of business registration and obtaining the necessary permits and licenses. 

The business registration process begins with choosing a company name and structure that aligns with your business goals. Next, you’ll need to prepare the Articles of Incorporation, deposit your capital, and get your business registered with the Legal Affairs Bureau. Following registration, you will need to submit the necessary paperwork to the Tax Office. More details on the steps can be found in our article on Setting up a company in Japan.

Obtaining the required permits and licenses is crucial for operating your business legally. The specifics of these permits will depend on your industry and the nature of your business. Some sectors, such as food services, health care, and manufacturing, may require additional licenses and permits due to regulatory requirements. 

Establishing relationships with suppliers and vendors

Establishing a strong network with suppliers and vendors is a critical step when you’re looking to start a company in Japan. Understanding and aligning with the Japanese business culture can significantly enhance these relationships.

Japanese companies value responsiveness and reliability in their business partners. Therefore, as a new company in Japan, being proactive in communication and consistently delivering on your promises is essential to build trust and long-lasting partnerships with suppliers and vendors.

Further, understanding the supplier’s perspective can foster mutual respect and cooperation, ensuring a smooth business relationship. Being considerate of their business challenges, timelines, and constraints can help establish a collaborative relationship beneficial to both parties.

For a richer understanding of establishing relationships with suppliers and vendors in Japan, tune into our podcast episode Japanese Business Culture with Rochelle Kopp. This provides in-depth insights on how to navigate these unique dynamics, which can significantly aid in building strong, mutually beneficial relationships with your suppliers and vendors.

How can you effectively market your business when you start a company in Japan?

Effective marketing of your company in Japan is integral to the success of this adventure. This goes beyond having a groundbreaking product or service; it demands a deep comprehension of the cultural, societal, and economic aspects that shape Japanese consumer behaviors. In the next section, we will explore actionable strategies that respond to these complexities. When you are about to initiate the journey to start a company in Japan, this guide is designed to equip you with vital knowledge to enhance your market presence.

Doing proper market research before you enter

Before you dive into the waters to start a company in Japan, conducting thorough market research is not just advisable, it’s indispensable. In our detailed article Market Research in Japan, we emphasized that understanding the intricate fabric of the Japanese market could be the difference between a flourishing business and a failing one.

In the early stages of planning to start a company in Japan, you’ll want to have a grasp on consumer preferences, industry trends, and potential competitors. Japanese consumers have unique tastes, driven by cultural nuances that might be very different from what you’re accustomed to. Leveraging detailed market research helps in understanding these nuances and in tailoring your products or services to meet local demands.

Furthermore, comprehending the competitive landscape is crucial as you start a company in Japan. With a comprehensive competitor analysis, you can position your company strategically, differentiating your offerings and highlighting your unique selling points.

Lastly, identifying and understanding regulatory challenges early on can prevent potential hurdles once you start a company in Japan. It’s vital to understand the legal and business requirements, which vary significantly from those in Western countries.

Effective marketing strategies to reach Japanese customers

Starting a company in Japan involves creating a well-rounded marketing strategy to effectively reach Japanese consumers. Our series of articles offer in-depth insights into various tactics that can help you connect with your target audience.

Based on our Guide to Japanese Branding Agencies, building a strong brand identity is crucial when you start a company in Japan. Japanese branding agencies specialize in creating brands that resonate with local consumers, taking into account cultural nuances and societal values. They can help you position your company in a way that connects with the Japanese audience authentically.

Traditional media in Japan is likewise still relevant. we highlighted the relevance of traditional media in Japan. Despite the rise of digital platforms, newspapers, TV advertisements, and direct mail remain highly influential. Consider these channels in your marketing strategy as you start a company in Japan.

Influencer marketing also plays a big role in marketing nowadays. Influencers have substantial sway in Japanese consumer behavior, and a partnership with the right influencer can significantly boost your brand visibility and credibility.

Our article on SEO Marketing Agency in Japan details the importance of optimizing your digital content for search engines. As internet use continues to grow in Japan, a strong SEO strategy can ensure your brand stands out in the crowded digital landscape when you start a company in Japan.

We further elaborate on digital strategy in Social Media Marketing Agency in Japan. Social media platforms offer a direct and interactive way to engage with consumers. Utilizing these channels effectively can foster a strong brand community when you start a company in Japan.

Having a comprehensive digital marketing strategy is therefore crucial. From SEO to social media, effective digital marketing can help your brand reach a larger audience and convert potential customers when you start a company in Japan.

Building a strong brand presence in the Japanese market

Taking the leap to start a company in Japan demands not only an innovative product or service but also the construction of a strong brand presence that resonates with local consumers. Our comprehensive article, Branding in Japan, provides essential insights on this subject.

Creating a successful brand in Japan entails much more than just designing a catchy logo or a memorable tagline. It’s about communicating your company’s values and mission in a way that aligns with Japanese cultural norms and consumer expectations. As you start a company in Japan, this deep understanding of your audience is crucial in crafting a brand that truly connects with them.

Furthermore, consistent brand messaging across all your communication channels is key. Whether it’s your website, social media platforms, or print advertisements, consistency aids in establishing a strong brand recall. This consistency becomes particularly significant as you start a company in Japan, a market known for its brand loyal consumers.

Additionally, collaborating with local branding agencies can provide an invaluable advantage. Choosing the right partner for your digital marketing needs is vital. A good agency can offer a tailored strategy that considers all facets of digital marketing, helping your brand grow in Japan’s complex digital landscape. These agencies, deeply rooted in the local culture, can help tailor your branding efforts to better resonate with the Japanese audience, an essential step when you start a company in Japan.

Cultural considerations in marketing as a foreign entrepreneur

In your quest to start a company in Japan, cultural considerations play an integral role in your marketing strategy. Starting a company in Japan implies understanding its cultural fabric and consumer behavior. One significant aspect is the high regard for quality and durability. Japanese consumers appreciate products that promise longevity and reliability, thereby making this a compelling marketing angle.

Additionally, customer service is paramount in Japan. Businesses that provide exceptional customer experiences often thrive in this market. As you start a company in Japan, emphasizing your commitment to top-notch customer service can significantly enhance your brand’s appeal.

Japanese consumers also value tradition and innovation. Brands that can blend these aspects, offering innovative products or services steeped in traditional values, tend to resonate well with this audience. When you start a company in Japan, this fusion can provide a unique selling proposition for your business.

Furthermore, the practice of ‘omotenashi’ or hospitality is deeply ingrained in Japanese culture. It goes beyond just excellent service, focusing on anticipating and fulfilling customer needs even before they arise. Incorporating this concept into your business ethos can help form stronger customer relationships when you start a company in Japan.

Lastly, understanding local trends and preferences is crucial for successful marketing. Whether it’s the popularity of cash transactions or the preference for compact, minimalist design, tailoring your marketing strategy to these trends can yield significant benefits.

Understanding Japanese sales culture 

As you plan to start a company in Japan, a deep understanding of the Japanese sales culture is vital. Our articles and podcast episodes provide comprehensive insights into this significant aspect of doing business in Japan. In our article Guide to Doing B2B Sales in Japan and our podcast series Episodes on Sales in Japan, we dive into the subtleties of the Japanese sales landscape.

When you start a company in Japan, it’s important to recognize that sales, particularly in the B2B sector, are relationship-driven. Establishing a robust and long-lasting business relationship is often a prerequisite to making a sale. Trust and mutual respect are the pillars of these relationships, so investing time in nurturing these connections can significantly impact your sales success.

Another notable aspect of Japanese sales culture is the value placed on face-to-face interactions. Although digital platforms have increased in relevance, in-person meetings continue to be a preferred method for conducting business. These meetings, often coupled with social outings, can solidify business relationships and build trust.

Additionally, decision-making in Japanese companies is typically a consensus-driven process. It involves several layers of management and can often be time-consuming. Patience and understanding of this collaborative decision-making process can help navigate sales negotiations when you start a company in Japan.

Japanese businesses also value service and support post-sale. Offering exceptional customer service and follow-up can help build loyalty and lead to repeat business. This focus on after-sales service is an essential consideration for your sales strategy as you start a company in Japan.

Getting professional help to start a company in Japan

At Scaling Your Company, we provide an end-to-end solution for those contemplating to start a company in Japan. Our strategic advice, bespoke resources, and nuanced understanding of the Japanese business landscape position us uniquely to propel your entrepreneurial aspirations. Our promise is to navigate you effortlessly through the intricacies of the Japanese market. For those seeking tailored support, our expansive network of local partners stands ready to offer specialized assistance finely attuned to your specific requirements. Unleash your entrepreneurial potential with us, and turn your vision into a thriving Japanese enterprise.

You can reach out to us using the form below. 

How do you recruit employees?

Starting a company in Japan without recruiting skilled and dedicated employees. Building a solid team can significantly impact your company’s success in this vibrant market. This section provides key insights into the recruitment process in Japan, offering valuable guidance on finding and attracting the right talent. With these strategies in hand, you’ll be well-equipped to assemble a winning team as you start a company in Japan. Let’s explore the intricacies of Japanese recruitment to help your business thrive.

Hiring the right country manager is key

Choosing the right country manager is a critical decision when you plan to start a company in Japan. This leader’s role can make a significant difference in your company’s trajectory in the new market. Insights from our podcast episode, Strategic Leadership in Japan with Timothy Connor, emphasize the importance of this role.

The country manager is your local captain who will steer your business in the Japanese market, overseeing operations, forming strategic partnerships, and ensuring that business goals align with local customs and expectations. Having a competent and knowledgeable leader is vital as you start a company in Japan.

Connor emphasizes the necessity for a country manager to have a deep understanding of the Japanese business culture. This expertise enables them to make strategic decisions that resonate with local customers and partners. The country manager should also possess robust leadership skills to guide your local team and drive your business forward.

The country manager should be well-versed in your industry, capable of interpreting global business strategies in the local context. They should have a proven track record in business growth and be able to navigate the challenges that come with entering a new market.

Hiring the right country manager is a strategic investment in your company’s future in Japan. It’s a vital step that requires careful consideration and due diligence as you plan to start a company in Japan.

Legal Hiring Requirements

Complying with legal hiring requirements is a crucial aspect to consider when you plan to start a company in Japan. These regulations cover a wide range of aspects from contractual agreements to working hours, overtime, and statutory benefits. Ensuring your company’s compliance with these laws is crucial not only for ethical business practices but also for preventing potential legal disputes.

For instance, Japan has specific rules regarding work contracts. These must include certain stipulations, such as working hours, holidays, and wages. Adhering to these requirements while drafting employment contracts is key as you start a company in Japan.

The country also has guidelines around working hours, overtime, and holidays. For example, employers are required to grant a certain number of annual paid leave days, and there are also laws regulating overtime work and pay. 

When it comes to employee termination, Japan has strict regulations designed to protect employees from unjust dismissal, so it’s important to familiarize yourself with these rules to avoid potential legal issues.

Navigating the intricacies of Japanese employment law can be challenging, particularly for foreign entrepreneurs. To ensure your hiring process adheres to all legal requirements, it is highly recommended to seek guidance from a knowledgeable legal expert well-versed in Japanese employment law. By consulting with an expert, you can ensure full compliance and avoid potential legal pitfalls.
To help you get started on understanding Japanese Labor Law, we invite you to watch our informative seminar about Japanese Labor Law Q&A with a Japanese Sharoushi. This Q&A session provides valuable insights and practical advice to assist you in navigating the complexities of Japanese employment law.

Using “Hello Work” Agencies

As you make plans to start a company in Japan, one invaluable resource you may want to consider for recruitment is the network of “Hello Work” agencies

“Hello Work” is a government-run employment service centers spread across Japan. They cater to both job seekers and employers, making them a significant resource when you start a company in Japan. The agencies offer a wide range of services including job placement, vocational guidance, and employment insurance procedures.

For employers, “Hello Work” agencies can be a valuable partner in recruitment. They have a substantial database of job seekers from various sectors, enabling you to tap into a diverse pool of potential candidates. This can make your hiring process more efficient and effective, a critical factor as you start a company in Japan.

Additionally, “Hello Work” agencies also provide support and guidance on employment regulations. This can be particularly useful for foreign entrepreneurs unfamiliar with Japanese labor laws and hiring practices. 

Mandatory Insurance Systems

When you start a company in Japan, it’s crucial to be aware of the mandatory insurance systems in place for employees. This not only ensures your compliance with Japanese law, but it also contributes to the wellbeing of your workforce. 

In Japan, employers are required to enroll their employees in four types of insurance: Health Insurance, Employees’ Pension Insurance, Employment Insurance, and Workers’ Accident Compensation Insurance. This requirement stands regardless of the size of your company or the nature of employment contracts. Adhering to these insurance mandates is essential as you start a company in Japan.

Health Insurance covers a portion of medical costs for the insured employees and their dependents. Similarly, Employees’ Pension Insurance provides pension benefits to employees after retirement, or in the event of disability.

Employment Insurance, on the other hand, provides benefits during periods of unemployment and supports vocational training for job seekers. Workers’ Accident Compensation Insurance covers medical and leave expenses in case an employee is injured or falls ill due to work or commuting.

It’s crucial to enroll your employees in these insurance programs as soon as they start working for your company. Failure to do so can result in penalties, making it vital to understand and comply with these requirements when you start a company in Japan.

Final Thoughts

Japan offers exciting business opportunities, thanks to its robust economy and significant market trends favoring health and agricultural technology. The nation’s interest in smart cities, and strong government subsidies for startups present unique prospects. Financial backing can be secured through government programs and other conventional sources.

Setting up operational infrastructure in Japan demands thorough planning, with special attention on location, business registration, and supplier relationships. Tailoring your marketing strategy to the Japanese audience is crucial, taking into account their culture and consumer behavior. 

Hiring in Japan involves legal and insurance considerations, with the selection of a country manager being a pivotal step. Japan’s market indeed offers great potential, but success requires a deep understanding of its complexities, sound planning, and effective execution.

Stay tuned to Scaling Your Company’s upcoming articles and podcasts for invaluable insights and resources to guide you on this journey. Navigating the exciting yet complex Japanese market can be made significantly easier with the right guidance and resources. 

If you’re looking for tailored guidance on how to start a company in Japan, we’re here to assist you. Connect with us through our contact form to access expert referrals and personalized advice. Starting a successful venture in Japan begins with the right guidance – let us be your partner in this exciting journey.


Subscribe to our bi-monthly newsletter to stay updated on the latest podcast episodes, and get notified on our free monthly seminar featuring experienced entrepreneurs and experts.

Something went wrong. Please check your entries and try again.
Bottom Banner (1)

Let us help you scale your company in Japan 2x-5x with our advisory services!

Scroll to Top