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If self-operation and cost optimization are top priorities for your business, Wyoming is a worthwhile option with the following advantages:

• Low maintenance costs: The minimum Annual Report License Tax is $60/year. This applies when the property located in Wyoming is $300.000 or less. If it exceeds that threshold, the tax is calculated at $0,0002 per dollar of property located in Wyoming.Wyoming SOS).
• Owner information is not required to be disclosed in incorporation documents: The Wyoming Articles of Organization form does not include a section for member or administrator names; it only requires information for the profile creator and registered agent.Wyoming SOS, Articles of Organization formNote: Businesses are still required to provide owner information to Amazon, banks, and tax authorities when requested.
• No state-level income tax: Wyoming does not levy corporate or personal income tax. However, if goods are stored or business operations occur in other states, the business may still have tax obligations (such as sales tax) in those states.

However, Wyoming's familiarity with large investment funds is not as prominent as Delaware's.

If you're looking to build a large private label brand and plan to raise capital from US investment funds or partners, you should consider Delaware, given its advantages:

• A globally renowned legal system: Delaware is home to many large American corporations. According to a 2024 report by the Delaware Division of Corporations, 66,7 % Fortune 500 companies are incorporated in this state. Investors are very familiar with Delaware legal entities.
• Court of Chancery: Disputes relating to internal corporate governance are adjudicated by judges specializing in corporate law, not by jury.

One of the issues that can cause the Amazon account verification process to require additional documentation is The information between the documents is inconsistent..

The legal entity name, business address, and information about the owner or representative should be checked and compared between:

• LLC formation documents
• EIN and tax records
• Business bank account
• Amazon SellerCentral
• Identification documents and address certificates

Amazon may require sellers to provide documentation to verify their identity and address. According to Amazon's Seller registration guidelines, the required address documentation must meet certain issuance requirements; for example, some types of documents must have been issued within the last 180 days.

Therefore, using expired bank statements or address documents may require the seller to resubmit the documents.

Ways to mitigate risks: From the moment an LLC is formed, the business should create a standardized set of legal information and use it consistently across banking, tax, and Amazon records. Before submitting verification documents, sellers should double-check the company name, address, representative, date of issue, and information on each document.

Forming an LLC is not the final step. After the business is incorporated, the LLC may continue to incur tax, reporting, and legal entity maintenance obligations depending on the state of registration and business structure.

Specifically, for foreign-owned single-member LLCs that are required to report, the business may need to file Form 5472 along with pro forma Form 1120 when reporting transactions occur. Failure to file Form 5472 on time can result in a $25.000 fine per violation, with additional penalties for continued violations, according to IRS regulations.

Similarly, businesses need to monitor annual reports and LLC maintenance fees as required by state regulations. For example, Wyoming stipulates that an LLC may be administratively dissolved if it fails to file its Annual Report and related fees more than 60 days after the deadline.

Therefore, sellers should create a separate tracking schedule for each obligation, instead of just focusing on when they form their LLC or start selling on Amazon.

If a seller wants to build their own brand and register it with the Amazon Brand Registry, registering the trademark in the US is a crucial step.

One point to note is that applicants with a domicile outside the U.S. must be represented by a U.S.-licensed attorney in proceedings before the USPTO. The USPTO also recommends that applicants consider using a trademark attorney to handle the registration process.

Therefore, Vietnamese sellers should not view trademark application as a simple registration procedure. The application needs to be checked from the registrability of the brand name, the class of goods/services, the owner's information, to the USPTO response process.

Inadequate documentation can lead to revision requests, objections, or delays in processing, thereby impacting branding plans and Brand Registry registration.

Once a business has proven its product and wants to build a long-term brand in the US, individuals and businesses should consider forming an LLC when:

• Stable revenue of $5.000 to $10.000 per month, and the business intends to maintain operations long-term (over 1 year).
• Businesses want to separate personal assets from business legal risks (e.g., product claims, customer lawsuits, tax debts).
• Businesses want to open a corporate bank account and obtain an EIN to work professionally with suppliers, logistics providers, and partners in the US.
• The company plans to raise capital, secure partners, or sell the company in the future.

Businesses don't need to rush if they're still in the testing phase (the first 1 to 3 months, when revenue is insignificant). At that point, they can register to sell using a personal account or a Vietnamese legal entity and establish an LLC when revenue is sufficient to cover maintenance costs (registered agent, annual report, etc.).

Small and medium-sized sellers often choose Wyoming because of its low operating costs, while businesses planning to raise capital often choose Delaware. There is no "best state" for all businesses. The decision depends on size, sales model, location, and FBA inventory. Here are some practical guidelines:

A key point that Vietnamese sellers often misunderstand.

• Choosing the state where the LLC is incorporated does not guarantee exemption from tax obligations in the state where the business actually operates. Forming an LLC in Wyoming does not automatically eliminate any tax or reporting obligations that may arise in another state.
• If the owner resides or the business actually operates in a different state.In cities like California or New York, establishing an LLC in Wyoming might require the business to register a foreign LLC.Foreign LLC) in the state where the business is operating, and this also incurs additional registration fees and ongoing reporting obligations.
• Sales tax is determined based on business activity and state regulations, not solely on the state in which the LLC is established. In the Amazon FBA model, storing goods at fulfillment centers in multiple states can impact sales tax obligations in those states. Businesses need to assess this. Sales Tax Nexus and the Marketplace Facilitator regulations of each state instead of the default assumption that forming an LLC in one state applies to the entire United States.

Absolutely. Amazon doesn't require sellers to be U.S. citizens, permanent residents (Green Card holders), or have a U.S. visa to sell on Amazon USA. Many international sellers can still do business on this marketplace from their country of residence.

However, to build a stable and professional sales operation and minimize risks during the account verification process, sellers should prepare appropriate business profiles and information from the outset.

For Vietnamese sellers, there are two possible approaches:

• Register to sell goods using personal or business information in Vietnam.
• Establish an LLC in the US and use US business information to conduct sales operations on Amazon.

Establishing an LLC in the US provides the seller with a separate legal entity to manage their business operations, making it easier to work with banks, suppliers, and partners in the US, and creating a foundation for long-term business expansion.

It's possible. Selling on Amazon USA doesn't mean Vietnamese sellers are exempt from tax obligations in Vietnam. Tax obligations depend on the business model, the seller's name, place of residence, and source of income.

• If the individual resides in Vietnam Individuals directly engaged in business and earning income from sales on Amazon must consider their personal income tax obligations and related duties as stipulated by Vietnamese regulations.
• If business operations are conducted through a business located in Vietnam.Businesses need to consider their tax obligations regarding revenue and income generated from cross-border business activities.
• If the seller establishes an LLC in the United States, Having an LLC does not automatically eliminate tax obligations in Vietnam. If the owner remains a resident of Vietnam, regulations regarding taxes on foreign income and regulations related to cross-border transactions must be considered.

Note: Specific tax obligations depend not only on where the Amazon account is registered but also on the business entity, place of residence, cash flow, and business organization. Sellers should define their business model from the outset to ensure they meet their tax obligations in Vietnam and the US, if applicable.

Contact the GLA team of experts for advice and support on tax obligations when doing business on Amazon and managing cross-border business operations.

Foreign investment procedures may be required, depending on the method of capital contribution and the scale of the investment. If a Vietnamese citizen uses capital from Vietnam to establish and contribute to an LLC in the US, this may fall under the scope of foreign investment activities.

Currently, this activity is guided at Decree 103/2026/ND-CP on overseas investment, effective from June 1, 2026.

According to the new regulations, overseas investment projects with an investment capital of less than 7 billion VND and not belonging to sectors or professions subject to conditional overseas investment are not required to go through the procedure of obtaining an Overseas Investment Registration Certificate. Instead, investors must register foreign exchange transactions in accordance with the regulations on foreign exchange management.

Therefore, Vietnamese sellers planning to establish an LLC in the US should clearly define their funding sources, investment amounts, and capital contribution methods to choose the appropriate procedures before transferring funds to the US.

Current Information Certificate (現在事項証明書) This is a document issued by the Legal Affairs Bureau of Japan (LAB), showing the currently valid registration information of the business at the time of issuance.

The current information certificate only reflects the current registration status of the business, helping relevant parties understand the legal information that is valid at the time of the search.

Current information certificates are commonly used for:

• Verify the current registration information of the business.
• Provide supporting documents when carrying out procedures with government agencies.
• Provide proof of business information to banks and partners.
• To facilitate transactions or other procedures that require confirmation of current registration status.

Current Information Certificate Template (Source: Ministry of Justice of Japan (MOJ))

Certificate of Complete Information History (履歴事項証明書) This document shows the business registration details recorded in the Japanese commercial register, including the business's current registration information and any information that has been changed or deleted within the three years prior to the issuance of the certificate.

A distinctive feature of this document is its ability to retrieve the business registration history. When a registration detail is changed and the change procedure is completed, the previous information is shown in the history section of the Certificate of Complete Information History.

This document is often used when needed:

• Check the business registration change process.
• Provide proof of legal history in transactions or procedures where required.
• Compare the registration information at each stage when conducting business verification.
• Provide records to the bank, partner, or competent authority when requested, showing documentation of your registration history.

The certificate shows the company's current name and address, as well as any company names that have been used in the past. (Source: Japan's Ministry of Justice (MOJ))

Certificate of Representative Information (代表者事項証明書) This document focuses on the registration information of the legal representative of the business.

A certificate of representative information is used to verify the representative status of a registered individual, especially when a business conducts transactions or procedures where the receiving party needs to verify who is authorized to represent the company.

The main contents of the certificate include:

• Business name and address: Record the company name and the address of its head office.
• Representative: Confirmation of the individual holding the representative position and the scope of their representative capacity as per the commercial filing.
• Confirmation from the registration authority: There is a certificate/confirmation from the registration authority certifying the content of the issued document.

Certificate of Closed Information (閉鎖事項証明書) This document records the registration details that have been transferred to Japan's closed register.

A closed information certificate allows you to look up old business registration information that is no longer shown in current registration records.

To help businesses easily identify when registration information has been transferred to a closed register, GLA experts have compiled three common scenarios in the table below:

Businesses can request a Japanese Company Incorporation Certificate immediately after the company registration process is completed by the Japanese Legal Affairs Bureau.

While the registration process for a Japanese company is still underway, the Certificate of Registration will not be issued.

The certificate of company registration in Japan does not have a fixed expiration date.

However, government agencies, banks, or partners often require the company to have a certificate issued for a specific period of time.

For example, some procedures of the Japanese Ministry of Justice require that a Certificate of Registration Information be issued within 3 months. This regulation only applies to the corresponding procedure and does not mean that the Certificate is only valid for 3 months.

The Japanese Ministry of Justice's requirements regarding the timeframe for a Certificate of Incorporation (Source: MY)

Yes. Foreign nationals or partners not affiliated with the company can still independently request a Japanese company registration certificate, even if they are not directors, shareholders, members, or representatives of the company.

When a company changes its registered information such as its legal representative, company name, or registered office, the business must register the change. within 2 weeks since the change occurred.

However, businesses do not need to update the information directly on the issued certificate.

After the registration change procedure is completed, the new information is updated in the company's registration file. If a certificate reflecting the new information is needed, the business can request a new registration information certificate.

The Tax Identification Number (TIN) for individuals in Hong Kong does not exist as a single, distinct number.

Instead, the personal Tax Identification Number (TIN) is the Hong Kong Resident Identification Number (HKID). This is the only identification card that allows the Hong Kong Revenue Department to verify an individual's identity.

HKID has a structure consisting of 1–2 uppercase letters, 6 digits and 1 check character in parentheses, for example: A123456(7) or AB123456(A).

The HKID structure consists of three main components:

• Alphabetical prefix: Consists of 1 or 2 uppercase letters.
• Identification number: Consists of 6 digits, assigned to each individual.
• Check digit: Consists of a single digit or the letter A, enclosed in parentheses, to check the validity of the code.

According to the Immigration Department (IMMD)The characters in parentheses are not part of the ID card number but are used for data processing purposes. However, when using HKID as TIN, IRD requires including these characters and omitting the parentheses.

Location of TIN display in Hong Kong (Source: OECD)

To help individuals correctly read each component on the card before filling out the form, GLA experts have analyzed the sample HKID number below.

Example of Hong Kong Resident Identification Number (HKID): A123456(7)

When individuals perform procedures such as filing personal income tax returns, submitting tax documents, submitting CRS/AEOI reports at banks, or updating information with the Hong Kong Internal Revenue Service (IRD), their HKID number is used. used according to the principle Officially as follows:

Keep all the letters and numbers of HKID, including the check digit, and remove only the parentheses surrounding it.

The table below helps individuals correctly convert HKID format to tax and banking forms. This is the rule GLA experts apply when reviewing Hong Kong tax returns for GLA clients.

Important note: IRD requires the TIN equivalent code to include the character in parentheses. Missing this character indicates an incorrect declaration number, and the financial institution may request additional information.

When an HKID is used as a personal TIN in Hong Kong, the individual must enter the correct identifier structure as required by the IRD.

Errors in characters, spacing, or coding may cause TIN information to be incorrectly recognized by tax systems or financial institutions.

• Include the check character: When declaring HKID as TIN, keep the check character at the end of the code, but remove the parentheses.
• Do not arbitrarily change the HKID structure: Do not add leading zeros, do not insert spaces between letters and numbers, and do not change the order of the code's components.
• Enter only the required identifier: If the form requires a TIN, the individual only needs to fill in the HKID code in the specified format, without adding the word "TIN" or any symbols that are not part of the identifier.
• Verify the format before submitting: Compare the HKID on your identification document with the information you have declared to minimize errors when filing taxes, opening accounts, or providing information to financial institutions.

When an individual receives their Tax Return or Notice of Assessment from the Hong Kong Internal Revenue Service (IRD), they will see a series of numbers labeled "TIN (for eTAX login)". This series of numbers... not NEWS Used for declarations in international tax filings, banking records, or CRS/AEOI.

"TIN for eTAX" is a login code for the IRD's electronic tax system, not a tax identification number used to identify individuals in procedures requiring TIN. When identifying the TIN of a Hong Kong tax resident, the HKID is the TIN equivalent.

From July 22, 2025, individual eTAX accounts will be migrated to the Individual Tax Portal (ITP). Therefore, individuals should not confuse the TIN for eTAX login with the TIN/HKID code when completing bank applications or forms related to CRS/AEOI.

The table below helps differentiate between two types of codes that are often confused when filing tax and financial documents:

According to GLA experts: "The most common mistake we encounter is customers copying the TIN number printed on the Notice of Assessment into the CRS self-confirmation form. That number is only for logging into eTAX. For AEOI purposes, individuals need to enter the full HKID number, including the check digit."

GLA assists individuals with tax filing procedures in Hong Kong, including verifying and standardizing Hong Kong Resident Identification Number (HKID) information, and supporting the preparation and submission of tax returns within the required deadlines.

The tax identification number (TIN) of a business in Hong Kong is: Business Registration Number ("BRN"))This is a mandatory identification number for authenticating the commercial activities and related financial transactions of a Hong Kong company.

BRNs are issued by the Business Registration Office ("BRO"), which is a unit of the Hong Kong Internal Revenue Service (IRD).

Note: The Business Registration Office (BRO) and the Companies Registry are two different agencies.

The Companies Registry is the agency that issues the Company Registration Number ("CRN"), not the Business Registration Number (BRN). When the form requests a TIN, you must provide the BRN, not the CRN.

For businesses established from December 27, 2023, BRN is recorded directly in the "No." section of the Companies Registry. on the Certificate of Incorporation.

Businesses established from this point onwards can identify their BRN directly on their Certificate of Incorporation. Confusion between CRN and BRN often occurs with businesses established before December 27, 2023, due to the way codes were issued and displayed before Hong Kong implemented UBI.

Regulations regarding TIN numbers in Hong Kong and notes

A business in Hong Kong is typically required to provide its Business Registration Number (BRN) in the following situations:

• Submit your Corporate Income Tax (Profits Tax) report and other taxes.
• Register a user account and log in to the eTAX system.
• Open bank accounts, checking accounts, and other financial services.
• Implement the Know Your Customer (KYC) business verification process.
• Submit international financial information exchange reports according to CRS standards or AEOI (Automated Exchange of Financial Information) regulations.

Note: As of December 27, 2023, the current BRN number will automatically become [BRN number]. Unique Enterprise Identifier (UBI), serving as a unique identifier for Hong Kong companies throughout the entire administrative and tax system in Hong Kong.

For businesses that have not yet been assigned a BRN, the authorities will issue a temporary BRN with a letter prefix, for example C0012345, to be used as a UBI.

This code is for business identification purposes only and does not replace the registration number shown on the Business Registration Certificate (BRC).

The Business Registration Number (BRN) is the official identifier of a business in Hong Kong's business registration and tax administration system.

Specifically, the structure of the Business Registration Number (BRN) includes:

• Structure: Including 8 digits at the beginning of the number on the Business Registration Certificate.
• Issuing authority: Inland Revenue Department ("IRD").

For example, on a Business Registration Certificate, the number may be displayed in full format as follows:

12345678-xxx-xx-xx-x

However, A company's information is just the first 8 digits. Therefore, the business's BRN/TIN code is: 12345678.

BRN position on the Hong Kong Business Registration Certificate

Several key features of the Business Registration Number (BRN) help ensure business identification within Hong Kong's regulatory system, including:

• Each company in Hong Kong is issued a unique, non-duplicate certificate within the business registration system.
• It is used throughout the entire operation of a business, from its establishment to its closure.
• It appears on the Business Registration Certificate issued by the Hong Kong Tax Department.

When a Hong Kong company declares its Business Registration Number (BRN) in tax forms, bank records, or business verification systems.

Businesses need to adhere to certain data entry rules to ensure accurate information and avoid confusion with other codes. Important considerations include:

• Do not use the Company Registration Number (CRN) instead of the Business Registration Number (BRN).
• Enter the exact 8 digits of the Business Registration Number (BRN), without adding any unnecessary parentheses, hyphens, or spaces.
• If the form asks for Value Added Tax ("VAT"), the business should select "Not applicable" if the business is not subject to this tax.

When opening a business bank account, the bank will compare the BRN on the form with the valid Business Registration Certificate. A single digit error or the wrong old CRN number can result in a request for additional information on the KYC application. - GLA Expert.

GLA assists businesses in registering for a Business Registration Number (BRN) in Hong Kong from A to Z, including procedural advice. business establishmentPrepare business registration documents and complete the process with the Hong Kong Internal Revenue Service (IRD).

The Hong Kong Resident Identification Number (HKID) is a personal identification data and is security as per regulations Regarding the protection of personal information in Hong Kong, for this reason, there is no publicly available lookup tool for HKID.

HKID verification is only performed in systems with legitimate access rights, including:

• Government agencies: State agencies use the population database to verify HKID information in administrative procedures.
• Banking system: Banks use HKID to perform Know Your Customer (KYC) procedures when opening accounts or conducting financial transactions.
• Hong Kong Revenue Department (IRD): The IRD uses HKID to verify taxpayer identity in individual tax filings and the AEOI (Automated Exchange of Financial Information) process.

Individuals can check their tax record information themselves by logging into the portal. eTAX (Individual Tax Portal ("ITP")) of IRD.

Unlike HKID, a business's business registration number (BRN) can be looked up online through Business Registration Number Inquiry, the official tool provided by the Hong Kong Internal Revenue Service (IRD) on the GovHK portal.

This service is free and open to all individuals and companies, including residents and companies in mainland China. The tool allows you to look up BRN based on business name and business address area.

Interface for the Business Registration Number (BRN) lookup tool in Hong Kong.

To check your business's BRN/UBI, follow these steps:

1. Access the Business Registration Number Enquiry tool on the official Hong Kong Government portal.
2. Enter the full business name as registered.
3. Select the Business Address Area corresponding to your business: Hong Kong, Kowloon, or New Territories.
4. Enter the verification code in the order shown in the image.
5. View the search results and identify the matching business based on the displayed address, then record the BRN.

If a copy of the business registration information is required, the company can apply online in the next step and pay the fee according to IRD's fee schedule.

The Tax Identification Number (TIN) is not the same as the Company Registration Number (CRN).

These two types of codes have different functions:

• Business Registration Number (BRN): Used in the tax system and is often referred to as the tax identification number (TIN) of a business.
• Company Registration Number (CRN): Issued when a business registers its establishment at the company registration authority (applicable to companies established before December 27, 2023).

When the form requests a tax identification number (TIN), businesses need to provide the Business Registration Number (BRN) instead of the Company Registration Number (CRN). From December 27, 2023, newly established companies use the BRN as the number on their Certificate of Incorporation.

Yes, but the company needs to have the right understanding of... What type of information needs to be provided?.

The Common Reporting Standards (CRS) is an international mechanism developed by the OECD, under which financial institutions (banks, securities firms, etc.) are responsible for collecting customer account information and reporting it to the tax authorities of their respective countries. The tax authorities then automatically share this information with the tax authorities of the countries involved.

In the CRS process, foreign businesses need to provide information according to the following principles:

• If the business is a tax resident in Hong Kong (either incorporated in Hong Kong, or incorporated overseas but normally governed or controlled in Hong Kong): provide the Hong Kong BRN.
• If the business is a tax resident in another country but has an account at a Hong Kong financial institution: provide the TIN issued by the business's tax resident country, not the Hong Kong BRN.
• If the business has multiple tax residences: it is necessary to declare the tax dates (TINs) of all relevant countries.

Yes. TIN is one of the mandatory pieces of information that banks collect during the Know Your Customer verification process when opening an account. However, TIN is only... a part In the application package, banks often request additional documents depending on the applicant.

To help individuals and businesses proactively prepare all necessary documents from the first submission, GLA experts have compiled a list of documents commonly requested by banks:

Note: Each bank in Hong Kong may have its own document requirements. The list above is for reference only; actual requirements may include additional documents depending on the account type, business sector, and risk level assessed during the KYC process.

GLA assists individuals/businesses in preparing documents for opening bank accounts in Hong Kong, including checking tax identification number (TIN) information, preparing legal documents, and guiding them through the application process as required by the bank.

According to IRD, HKID is simply the TIN equivalent code for Hong Kong tax residents.

Individuals who are tax residents in other countries must file a TIN issued by that country using the CRS self-certification form. If they are tax residents in multiple locations, they must file TINs for all those locations.

No. IRD confirms that the "TIN" number printed on the Individual Tax Return and Tax Assessment Notice is not the TIN equivalent for AEOI purposes. This number is only for eTAX login. Individuals must provide their full HKID number, including check characters.

Hong Kong allowing foreign investors to own 100% of the capital in the company. without requiring local shareholders or partners.

The tax system in Hong Kong is relatively simple, with three main tax categories related to income and business activities.

To help businesses easily identify their tax obligations and proactively plan their finances, GLA's International Tax and Accounting Consulting experts have compiled the following list of taxes that businesses need to be aware of:

The favorable ownership structure and relatively simple tax system make it easy for foreign investors to establish and operate travel companies in Hong Kong.

For travel companies, these factors help businesses proactively organize their operations and manage costs in accordance with their operating model.

The advantage of connectivity with China is one of the outstanding opportunities when establishing a travel company in Hong Kong. Its geographical location and international transportation system make it easy for Hong Kong companies to develop multi-destination tours between Hong Kong and China.

From September 11thChina is expanding its 240-hour visa-free transit policy, applying it to five more border crossings in Guangdong province, including two that directly connect with Hong Kong: the Hong Kong-Zhuhai-Macau Bridge and the West Kowloon Railway Station (China Government Information Portal, 2025).

This policy creates more favorable conditions for international tourists to combine visits to Hong Kong with destinations in China, thereby opening up opportunities for businesses to develop international tours and multi-destination travel itineraries.

Hong Kong hosts numerous international events in sports, arts, culture, and entertainment, contributing to a steady stream of tourists year-round.

Some notable events include Hong Kong Sevens, LIV Golf Hong Kong, Art Basel Hong Kong, and Art Central, along with many other large-scale festivals and programs.

International and cultural events diversity in Hong Kong

Besides international events, tourism products related to Hong Kong's culture and cinema also attract a large number of visitors. The exhibition "Kowloon Walled City: A Cinematic Journey," which opened on May 24, 2025, has attracted more than 49,9 million visitors.

The exhibition "Yau Ma Tei Police Station: A Cinematic Journey," which opened on January 2, 2026, also received great interest, with over 11.000 tickets for January 2026 selling out within two weeks.

Yau Ma Tei Police Station Exhibition in Hong Kong

For companies operating in the tourism sector in Hong Kong, the city's diverse ecosystem of events and cultural experiences creates many different customer segments and service demands, ranging from event-based tours, cultural and arts tours, and film tours to accommodation, transportation, and experiential services.

Hong Kong is an international financial and business hub, with a thriving business environment and extensive networks connecting to numerous markets around the world.

This is a factor that helps businesses build a professional image and increase brand recognition when operating in the international tourism sector.

By establishing a travel company in Hong Kong, businesses can build commercial relationships with numerous partners in the travel service chain, such as airlines, hotels, transportation companies, event organizers, and experience providers. Businesses can also utilize their Hong Kong legal entity to sign contracts, conduct transactions, and expand their network of partners in international markets.

Not necessarily. Foreign nationals who are not residents of Hong Kong can still establish companies in Hong Kong without needing to be residents there.

However, The right to establish a company and the right to enter the country to work or operate a business are two different issues.If investors wish to directly participate in business operations in Hong Kong, they need to... visa application, entry permit The scene is appropriate.

One of the applicable categories is entry for investment as entrepreneurs under the General Employment Policy ("GEP").

The Immigration Department reviews entry permits based on the specific conditions of each application.

A company does not need to register for a Travel Agency Business License (TAL) if its actual operations do not fall within the scope of travel agency business (TAB) as defined in Section 4 of the Travel Industry Ordinance (Cap. 634).

Whether a company needs to register for a Travel Agency Business License (TAL) is determined based on its actual business operations, not solely on the registered business sector.

The costs of setting up a travel agency in Hong Kong typically include company registration fees, business registration fees, and travel licensing fees if the activities fall within the scope requiring licensing. Fees related to travel-related activities include:

• Application fee for Travel Agent License.
• Fees for issuing or renewing a Travel Agent License.
• A fee will be charged for a copy of the Travel Agent License if needed.
• There is a fee for amending information on your Travel Agent License if there are any changes.
• Fees apply for a Business Permit and fees apply for issuing or renewing the Business Permit, depending on the case.
• Fees may apply for issuing copies or amending information on the Business Permit.

No. If the business falls within the scope of travel agent business, the company must obtain a Travel Agent License before conducting any activities within its licensed scope.

Company formation and obtaining a Travel Agent License are two separate procedures. Businesses can complete company registration first, but company formation does not automatically mean permission to operate as a travel agency.

Hong Kong's tax system is built on the principles of low tax rates, simple and transparent administration, and high predictability, aiming to create a favorable environment for domestic businesses and international investors.

One of the highlights of the Hong Kong tax system is the Corporate Profits Tax (PIT), which is applied according to Two-tiered Profits Tax Rates Regime:

• 8,25% on the first 2 million HKD of taxable profit.
• 16,5% for the portion of taxable profit exceeding HK$2 million.

Besides its low tax rates, Hong Kong is also notable for its simple tax system based on a scheduled tax model.

Under this model, the Hong Kong Internal Revenue Service (IRD) applies tax rates to specific income groups, including:

• Income from business, professional, or commercial activities (Profits Tax).
• Income from employment (Salary Tax).
• Income from renting properties in Hong Kong (Property Tax).

In addition, Hong Kong Some common taxes are not applied. in many other countries, including:

• Value Added Tax (VAT).
• Sales Tax.
• Capital Gains Tax is the tax on profits resulting from the appreciation of capital assets.
• Withholding tax on dividends and interest paid to recipients outside Hong Kong.

Thanks to its simple tax policy, competitive tax rates, and limited tax scope, businesses in Hong Kong can easily predict their tax obligations, optimize their financial planning, and more easily conduct international business operations.

Common Hong Kong taxes do not apply.

Thanks to its strategic geographical location, international business environment, and close economic ties with China, Hong Kong is considered one of the important gateways for international businesses to access the Chinese market and expand their operations in Asia.

Business & Investment Incorporating a company in Hong Kong There are many advantages to leveraging to connect with regional markets, including:

• Leverage the CEPA agreement to access the Chinese market with preferential tariffs and trade.
• Global connectivity is achieved through more than 40 double taxation avoidance agreements (DTAs).
• Expanding business operations into major markets such as China, the US, the UK, Japan, etc.

Gateway to the Chinese market 

The holding company model helps Hong Kong companies effectively control risk by separating ownership structures and assets among legal entities.

By separating the legal entities, the Hong Kong Holding Company will

• Separate the parent company's assets from the subsidiary's financial and legal risks.
• Protecting the owner's assets through a limited liability mechanism.
• Separating and managing intellectual property (IP) across separate legal entities helps to minimize risk.

The holding company model in Hong Kong establishes a centralized management structure while maintaining flexibility in operating subsidiary companies within the same system.

Through a single holding company, the Hong Kong company will:

• Managing and controlling multiple subsidiaries through share ownership and overall strategic direction.
• Coordinate business strategies among member companies, while each company maintains its own independent legal status.
• Allocate resources and manage internal cash flow among units within the group according to the established structure, complying with relevant legal regulations and tax obligations.
• Develop a suitable corporate structure for international fundraising and cross-border business expansion.

The holding company structure is suitable for businesses that own multiple subsidiary companies, operate in multiple markets, or are implementing an international expansion strategy.

The holding company model allows businesses to centrally manage their capital contributions, shares, and assets in subsidiary companies, and to separate business operations for each legal entity.

This structure is particularly suitable for businesses that own multiple brands or products, or are expanding their operations into multiple markets.

For example: One Businesses operating in the gaming industry. Owning three brands with three different levels of development, the company could establish a holding company in Hong Kong and have each subsidiary responsible for one brand.

Holding Company

Subsidiary Company A: Owns and operates Game A.

Subsidiary Company B: Owns and operates Game B.

Subsidiary Company C: Owns and operates Game C.

This structure allows the company to easily track the performance of each brand and allocate resources accordingly. When expanding Game B, the company can raise capital directly through the subsidiary responsible for Game B, allowing investors to focus on evaluating a specific project rather than the entire group's operations.

Separating legal entities helps businesses manage assets and risks according to each activity, but it does not mean that all risks between subsidiaries are completely eliminated.

Based on shareholding ratios and voting rights, the structure between holding companies and related types of companies is clearly illustrated in the following table:

Based on the role and scope of operations of the parent company, holding companies in Hong Kong are typically categorized into the following models:

In addition to their operational functions and ownership structure, holding companies in Hong Kong are also classified based on the type of assets they hold and manage.

Each model serves a different investment and asset management objective.

Holding companies in Hong Kong are not regulated as independent business entities; this designation is based on the company's operational function.

In fact, a company is only called a Holding company when it holds shares in, manages, or controls a subsidiary, rather than directly producing or selling services.

Holding companies still need to register under a standard business type, the most common being: Private Limited Company.

Hong Kong holding companies are widely used in many sectors, particularly those requiring centralized asset management, diversified investments, and international market expansion.

• Focus on owning stakes in multiple businesses across sectors such as trade, manufacturing, and services, while also coordinating the overall strategy.
• Managing patents, trademarks, copyrights, and licensing agreements for subsidiaries to optimize operations.
• Managing investments or companies operating in the financial, fund, or insurance sectors under the supervision of a regulatory authority.
• Acting as the legal entity managing research and product innovation projects within the business system.
• Centralized management of multiple stores or branches aims to optimize operational efficiency and control business activities.

Holding companies and ordinary companies in Hong Kong can register under the same legal form, but differ mainly in their operational purposes and revenue generation methods.

Yes. Except in cases where the company has registered and been approved as a Dormant Company under Hong Kong regulations, the holding company is still required to fulfill all annual compliance obligations.

Typically, businesses need:

• Maintain accounting records in accordance with regulations.
• Have your financial statements audited by a Certified Public Accountant (Practicing) (CPA) in Hong Kong (if required to be audited).
• Submit the Profits Tax Return (PTR) to the Hong Kong Internal Revenue Service (IRD).
• Submit the Annual Return (Form NAR1) to the Companies Registry by the deadline.

Japan is currently the world's fourth-largest economy with a consumer market of over 120 million people and stable purchasing power.

According to data from the Japanese Cabinet Office, nominal GDP in 2025 is projected to reach approximately 662,79 trillion yen, a 4,5% increase from the previous year and marking the fifth consecutive year of growth.

The large scale of the economy means that businesses in Japan always have a need for support services such as marketing, management consulting, human resource recruitment, software development, digital transformation, and tourism services.

This foundation gives the agency model more opportunities for long-term growth instead of just following short-term trends.

Japan not only has a transparent business environment but also has many support programs for foreign investors.

Through the Japan External Trade Organization (JETRO) and the Investment and Business Support Center (IBSC) system, businesses can access consulting services on company formation, investment, visas, and partner networking right from the initial stages.

These policies help reduce barriers to market entry and create favorable conditions for agencies providing consulting and support services to international businesses to expand their operations in Japan.

One of the biggest drivers behind the growth of the agency model in Japan is the strong digital transformation process coupled with a persistent labor shortage.

According to Japan's Ministry of Health, Labour and Welfare (MHLW), the number of job openings has consistently exceeded the number of job seekers for many years, reflecting the high demand for recruitment from businesses. In the information technology sector alone, Japan's Ministry of Economy, Trade and Industry (METI) forecasts a potential shortage of approximately 790.000 IT professionals by 2030.

In addition, online advertising budgets are also increasing rapidly. According to Dentsu (2025), internet advertising spending in Japan will for the first time account for more than 50% of total advertising spending in the entire market. These trends create significant demand for agencies in the fields of marketing and digital marketing, software development and IT outsourcing, recruitment, and digital transformation consulting.

Advertising costs in Japan (Source: Dentsu Report)

Following the post-pandemic recovery period, Japan's tourism industry continues to record strong growth.

According to the Japan National Tourism Organization (JNTO), the number of international visitors to Japan has consistently set new records in recent years. Vietnam is one of the fastest-growing source markets in Southeast Asia.

The development of the tourism industry not only creates opportunities for travel businesses but also boosts demand for many related services such as:

• Tourism marketing.
• Travel agency and tour operator.
• Translation and tour guide services.
• Event organization and MICE.
• Investment consulting in the tourism sector.

This is a potential market for agencies looking to target international clients and businesses operating in the tourism sector.

Vietnamese businesses have significant advantages when developing operations in Japan. According to the Japan Immigration Bureau (2025), by the end of 2025, the Vietnamese community in Japan will... reached 681.100 peopleThey rank second among foreign nationalities. This group represents both a source of human resources and a potential customer and partner group for newly established businesses.

In addition, Vietnamese businesses have many advantages such as:

• Understanding the culture and needs of both the Vietnamese and Japanese markets.
• It facilitates easy connection between customers, partners, and human resources in both countries.
• There are opportunities to develop specialized services for Vietnamese businesses and the Vietnamese community in Japan.

These advantages help businesses shorten the time to market entry and create a favorable foundation for expanding agency business operations in Japan.

According to data from the Japan National Tourism Organization (JNTO), released by the Vietnam National Administration of Tourism, nearly 678.500 Vietnamese tourists will visit Japan in 2025, more than double the previous year and marking the third consecutive year of record-breaking numbers.

In the first six months of 2026, the number of Vietnamese tourists continued to reach approximately 396.500, an increase of 8,7% compared to the same period, making Vietnam the 9th largest source market for Japanese tourists and the 3rd largest in Southeast Asia.

The tourism market in Japan still has much room for growth. The majority of Vietnamese tourists visiting Japan for the first time still choose the familiar itinerary of Tokyo, Mount Fuji, Kyoto, and Osaka. This presents an opportunity for businesses to develop specialized tourism products and explore new destinations.

In addition, the community of 681.100 Vietnamese people in Japan is also a target customer group for domestic tourism services and tours for visiting relatives, business trips, or a combination of study and work.

Depending on their development direction, businesses can choose from various business models, such as:

• Organizing and operating all-inclusive tour packages.
• Travel agency selling airline tickets, making hotel reservations, and providing other travel services.
• We provide land tour services for international groups visiting Japan.
• We provide tour guide services, transportation, and assistance for tourists.
• Engaging in specialized tourism products combined with study abroad programs, trade promotion, or labor export.

Unlike many other agency fields, businesses wishing to operate travel services in Japan need more than just a few things. Establishing a travel company in Japan Furthermore, they must obtain a travel agency business license in accordance with the Japanese Travel Agency Law (旅行業法).

According to the Japan Tourism Agency, businesses that directly organize or sell tours, arrange transportation, accommodation, and other paid tourism services must complete registration procedures before operating. Some important conditions that businesses need to meet include:

• Choosing the right type of travel business license In accordance with the scope of operation, Japan currently has five types of travel agency business registration, including first-class, second-class, third-class travel agencies, regional travel agencies, and travel agents.
• Meeting financial requirementsThis includes standard asset requirements and security deposits or contributions specific to each license type.
• Appointment of Travel Operations Manager (旅行業務取扱管理者) Each business office has the appropriate certification.
• The business location meets the regulations., serving practical purposes and qualifying for inspection by regulatory authorities when necessary.

According to GLA experts' experience in assisting with the establishment of travel companies in Japan: "A common mistake made by Vietnamese travel businesses is establishing the company first and then researching the licensing requirements. In reality, choosing the right registration category from the start optimizes deposit costs and avoids the need for mid-way upgrades."

According to the report "Survey of IT workforce supply and demandAccording to a study conducted by Japan's Ministry of Economy, Trade and Industry (METI), Japan could face a shortage of up to... Approximately 790.000 IT professionals by 2030. If labor productivity does not improve significantly, the reason stems from a declining working-age population, while the demand for digital transformation (DX), cloud computing, AI, and cybersecurity among Japanese businesses is rapidly increasing.

In addition, the growth of e-commerce has also led to a significant demand for IT services. According to the Japanese Ministry of Economy, Trade and Industry (METI, 2025)In 2024, the retail e-commerce market (B2C-EC) in Japan reached 26,1 trillion yen, while the business-to-business (B2B-EC) market reached 514,4 trillion yen.

This growth has created demand for website development, store optimization on platforms like Amazon Japan and Rakuten, and cross-border sales solutions. In particular, cross-border e-commerce between Japan and other countries, including the sale of Japanese goods to Vietnam, opens up further opportunities for IT companies to support operations and system connectivity.

Beyond serving the domestic market, IT companies can also capitalize on the demand for cross-border e-commerce between Japan and international markets. For example, Japanese businesses selling products to Vietnam or other markets may need solutions for website development, order management, system integration, data management, and optimizing sales operations on international platforms such as Amazon, etc. This presents a significant opportunity for IT companies providing e-commerce solutions and cross-border operational support.

This supply-demand gap opens up huge opportunities for foreign IT companies, especially Vietnamese businesses, a country that has had a strong position in the field of software outsourcing (offshore development) for the Japanese market for more than a decade.

Opening a company directly in Japan, instead of just working remotely, allows businesses to get closer to customers, build trust, and bridge the cultural and language barriers that are major obstacles in business cooperation with Japanese companies.

When establishing an IT company in Japan, businesses can choose one or a combination of different business models depending on their resources and development goals.

• Software Outsourcing (IT Outsourcing/SES – System Engineering Service): Receiving software and system development projects from Japanese companies, implementing them using a team of engineers in Japan or in collaboration with a team in Vietnam (offshore/hybrid model).
• Develop your own SaaS/application products.: Develop and market the company's own software products, targeting the Japanese or international market.
• Digital transformation consulting (DX Consulting): To support Japanese businesses (especially SMEs) in the process of digitizing operations and integrating systems.
• IT Engineer Supply and CoordinationConnecting engineers (including foreign engineers) with Japanese projects/companies that are experiencing manpower shortages.

A major advantage of the IT/software sector is that it doesn't require a separate specialized business license like some other sectors in Japan.

Businesses only need to follow the company formation procedures stipulated by Japanese law, including registering the business with the Legal Affairs Bureau of Japan and fulfilling all related tax and labor obligations.

However, when opening an IT company in Japan, businesses need to pay special attention to several important legal issues:

• Visa for the engineering teamForeign engineers working at the company need a visa.Engineer/Humanities/International Services or Japanese Engineer Visa as per regulations Japan Immigration Bureau (ISA)This is the most common work visa for software engineers and systems engineers. This visa is separate from the Business/Management visa for company founders/executives.
• Obligations to employeesWhen recruiting personnel (including foreign engineers), businesses must fully comply with regulations regarding labor contracts, social insurance, health insurance, and pension insurance as stipulated by Japanese labor law.
• If a business owner plans to apply for a Business - Manager visa, the business must simultaneously meet the following conditions: Japan Business Registration OfficeThe registered capital and personnel have been mentioned in the legal conditions section above in this article.

Additionally, if a business owner wishes to live and operate a company in Japan through a Business-Management Visa, the business must meet the current regulations regarding business office, investment capital, and personnel structure.

The IT/software business in Japan is considered one of the industries with lower barriers to entry due to several advantages:

• No specialized licensing barriers For businesses like tourism (travel agency registration) or human resources (employment agency license), simply registering the company allows you to start implementing the project.
• Flexible startup is possible.Businesses can start with a small team in Japan, combining resources from Vietnam in the initial phase, before expanding and recruiting more local staff.
• Authentic, long-term market demandUnlike industries dependent on consumption cycles or trends, the IT workforce shortage in Japan is projected to last at least until 2030, according to METI data, ensuring stable market demand in the medium to long term.

This is also why IT/software is often the preferred "entry point" for many Vietnamese businesses when first expanding into the Japanese market, before considering investing in sectors requiring more complex licensing such as tourism or human resources.

According to the report "Advertising costs in Japan in 2025" According to Dentsu, a leading Japanese advertising group, total advertising spending in Japan reached... 8,0623 trillion yen, continued its growth for the fourth consecutive year and set a new record high.

Remarkable, Internet advertising spending reached 4,0459 trillion yen., up 10,8% year-on-year and for the first time accounting for over 50% of the total advertising budget of the entire market.

This figure also exceeds the combined cost of four traditional media outlets: newspapers, magazines, radio, and television.

Advertising costs in Japan are rising (Source: Report from Dentsu)

This shift reflects a key trend: Japanese businesses are increasingly prioritizing digital marketing channels to reach customers, measure effectiveness, and optimize advertising costs.

In particular, small and medium-sized enterprises (SMEs) in Japan have a great need to find partners who can provide support:

• Develop an online marketing strategy.
• Increase your visibility in search engines.
• Reach customers through social media.
• Building a brand in the digital environment.

Besides domestic demand, the increase in cross-border business activity also creates more opportunities for international digital agencies. Japanese businesses expanding into Southeast Asian markets need partners who understand the local market, while foreign businesses (including those in Vietnam) wanting to reach Japanese customers also need agencies capable of bridging the gap in language, culture, and consumer behavior.

When establishing a Marketing Agency in Japan, businesses can implement various service models depending on their strengths and development direction, including:

• SEO / SEMSearch engine optimization (SEO) and keyword advertising for Japanese businesses or foreign businesses wanting to reach Japanese consumers.
• Optimizing display using AI tools (GEO)Optimizing content so that the brand is mentioned and cited in AI search engine results is crucial. As users increasingly search using AI assistants, the demand for this service is rapidly growing and represents a significant area of ​​growth.
• Social Media MarketingContent management and advertising on social media platforms are areas experiencing double-digit growth, according to the Dentsu figures mentioned above.
• Multilingual content productionVideos, images, and articles serving both the Japanese domestic market and cross-border communication needs (inbound tourism, trade promotion).
• Multilingual advertising and PR: To assist foreign businesses in building their brand image when entering the Japanese market, or vice versa.

Marketing - Digital is also a field No specialized business license required. To begin operations, businesses only need to complete the standard company registration procedures. However, there are two important legal frameworks governing advertising content that agencies must understand to avoid violations when providing services to clients:

• Law on Prevention of Illicit Labeling and Gifting (Act against Unjustifiable Premiums and Misleading RepresentationsThis law is administered by the Japanese Consumer Affairs Agency. It strictly prohibits exaggerated or misleading advertising regarding product quality/price ("misleading advertising"), and limits the value of promotional gifts included with products. This is a regulation that agencies need to pay particular attention to when advertising in sensitive sectors such as cosmetics, dietary supplements, and medical/beauty services.
• Law on Protection of Personal Information (Privacy Policy), is overseen by the Personal Information Protection Commission. When an agency collects and processes client data from its partners (email marketing, targeted advertising, CRM management), it must comply with regulations regarding the lawful collection, storage, and transfer of personal data.

Violating these two legal frameworks not only affects the clients the agency serves, but the agency itself, as the advertising entity, may also be held jointly liable. Therefore, this is a point that needs to be included in the internal content review process from the outset.

Compared to local Japanese agencies, Vietnamese marketing agencies have several significant advantages when entering this market:

• Bilingual, multicultural services: The ability to simultaneously serve Japanese clients looking to expand into Southeast Asia and Vietnamese/international clients seeking access to the Japanese market.
• More competitive operating costsIf a company organizes its content production and design team using a hybrid model (partially in Japan, partially in Vietnam), it can optimize costs compared to a purely Japanese agency.
• Understanding Vietnamese consumer behavior: A clear advantage is serving Japanese businesses exploring the Vietnamese market, or businesses wanting to reach the community of over 630.000 Vietnamese people living in Japan.

Overall, this industry has similarly low barriers to entry to IT, but requires agencies to invest more in building portfolios, brand reputation, and networks with Japanese businesses—factors that take time to accumulate in a market that values ​​stability and long-term security like Japan.

According to the report "Overall job placement situationAccording to data periodically released by the Japanese Ministry of Health, Labour and Welfare (MHLW), the labor supply-demand ratio (有効求人倍率 - the ratio of job openings to job seekers) in Japan has remained above 1,0 for many consecutive years.

This means that the number of job openings is consistently higher than the number of job seekers, reflecting a persistent labor shortage across the market.

This situation is particularly evident in manufacturing, construction, nursing care, information technology, specialized engineering, and industries employing skilled workers (Tokutei Ginou).

With Japan's population continuing to age and its domestic workforce shrinking, the demand for foreign workers is projected to continue increasing in the long term.

The groups of foreign personnel with high recruitment demand in Japan include:

• Specified Skilled Worker (特定技能 - Tokutei Ginou)
• Thực tập sinh kỹ năng (technical training)
• Foreign engineers are eligible for the Technical - Humanities - International Professional visa category.
• Highly skilled professionals in the fields of technology, engineering, and management.

This presents a great opportunity for international recruitment agencies, especially Vietnamese businesses, as Vietnam currently has one of the largest numbers of workers living and working in Japan.

Establishing a recruitment agency in Japan not only helps businesses connect directly with Japanese employers but also creates an advantage in building recruitment, training, and support processes for employees throughout their employment.

When opening a human resources agency in Japan, businesses can choose one or a combination of the following business models:

• Paid job placement services: Connecting candidates with businesses that need to hire, charging a service fee when the candidate is successfully hired.
• Labor dispatch: The business signs a labor contract directly with the employee, then sends them to work at the partner business (the client hiring the labor).
• Headhunting/Senior Recruitment: Searching for and introducing management personnel and experts to Japanese companies or foreign companies in Japan.
• Human resources consulting for foreign companies newly entering Japan.: Assisting in developing human resource policies and initial recruitment for newly established foreign companies (including Vietnamese businesses) in Japan.

This is the biggest difference in the HR industry: businesses Simply registering a company is not enough.. According to Employment Stability Act (職業安定法) and procedural guidelines published by the Japanese Ministry of Health, Labour and Welfare in "Handbook of procedures for obtaining a business license for employment agencies."Businesses wishing to operate paid job placement services must obtain prior permission, subject to the following main conditions:

• Basic asset requirementsminimum net assets (total assets minus total liabilities) 5.000.000 JPY per office.
• Cash/Deposit Request: businesses must own at least 1.500.000 JPY in cash or bank deposits in the company's name. (plus 600.000 JPY for each additional office).
• Mandatory appointment of a Job Placement Officer (Job referral officer), a person who has completed the mandatory training course organized by the designated agency, with a minimum ratio of 1 officer for every 50 employees engaged in job referral services.
• Office requirementsPrivacy must be ensured during candidate/client interviews, and clear policies for managing personal information must be in place.

Minimum net assets of 5.000.000 JPY per office.

Job placement officer: 1 person/50 operational staff

Businesses need to clearly define their business model before implementation because these two activities require two completely different types of licenses.

If a business wants to implement both models in parallel, it needs to apply for both types of licenses separately and comply with the requirements for separate data management between the two business areas.

One of the clearest examples of the need for support for foreign businesses in Japan is the existence and scale of operations of the Japan External Trade Organization (JETRO).

This is a Japanese government agency established to promote international trade and investment. JETRO currently operates a system of Invest Japan Business Support Centers (“IBSC”) in several major cities, including:

• Tokyo
• Osaka
• Nagoya
• Yokohama
• Kobe
• Fukuoka

In addition to providing market information, JETRO also supports foreign businesses in issues such as:

• Learn about the business environment in Japan.
• Guide to business registration procedures
• Provide information about visas.
• Connect with local partners

The fact that the Japanese government is building a dedicated investment support ecosystem for foreign businesses shows that there is a huge need for access to information, advice, and support for entering the Japanese market.

However, JETRO's support programs are mainly general in nature, providing basic information and guidance, and are not yet able to delve into solving the specific problems of each business.

This is precisely the gap that private enterprise consulting agencies, especially those with the expertise to understand:

• Japanese business culture
• Challenges faced by foreign businesses when entering the market.
• Characteristics of each profession
• The specific needs of Vietnamese businesses

Instead of simply providing information, business consulting agencies can create value by partnering throughout the entire process, from strategy development to connecting businesses with the necessary resources to implement their operations in Japan.

When opening a business consulting firm in Japan, an agency can build its services in various directions based on its expertise and partner network, including:

• Comprehensive business establishment consulting servicesWe provide support from the planning stage, selecting the type of company, to connecting you with specialized units to handle the procedures.
• Market expansion strategy consultingMarket research, business plan development, connecting with partners/distributors in Japan.
• M&A and investment partnership consulting.: Assisting foreign businesses in finding opportunities for mergers, acquisitions, or partnerships with Japanese businesses.
• Operations and Human Resources Consulting: To assist foreign businesses in establishing operational structures that align with Japanese business culture during their initial stages of operation.

Compared to the human resources or tourism sectors, Business Consulting does not require a general type of consulting business license to begin operations in Japan.

However, this is an industry with very important legal boundaries, because some specialized practices in Japan are under the exclusive right of certified professionals.

Therefore, when opening a business consulting agency in Japan, businesses need to clearly distinguish the scope of services they are permitted to provide.

• Drafting and submitting administrative documents on behalf of clients. (Company registration, visa applications, business license applications, etc.) are the exclusive services of Administrative Clerks (行政書士) - individuals holding professional certifications as prescribed by regulations.
• Providing advice and representation in handling legal disputes and negotiating dispute-related matters. is a proprietary business of LawyerAccording to the provisions on illegal legal practice (非弁行為) in the Japanese Lawyers Act, individuals/organizations without a lawyer's license who engage in dispute-related legal activities for the purpose of remuneration may be considered to be in violation of the law.
• Auditing and verifying financial statements. This is the exclusive service of certified public accountants (公認会計士).
• Tax filing and consulting This is the exclusive service of Tax Consultants (税理士).

In other words, a foreign business consulting agency, even without personnel holding the aforementioned certifications, can still provide strategic consulting, business networking, and market research services, but is not permitted to directly draft legal documents, represent clients in administrative filings, handle disputes, conduct audits, or file taxes on their behalf. This is a clear distinction that businesses need to understand from the outset to avoid legal risks when expanding their service scope.

To find their first customers or partners in Japan, businesses should combine networking channels supported by reputable organizations with face-to-face meetings at industry events and trade fairs.

Leverage business networking organizations and platforms:

• Connect through JETRO (Japan External Trade Organization) and the J-Bridge program to access Japanese businesses that match your business field.
• Leveraging J-GoodTech, a platform connecting Japanese small and medium-sized enterprises (SMEs) with international partners.
• Join chambers of commerce and foreign business associations in Japan, such as ACCJ or EBC, to expand your network and seek opportunities for collaboration.

Actively participate in trade fairs and business events:

• Attend specialized trade fairs such as CEATEC, FOODEX JAPAN, etc., to meet potential customers and partners in person. For the Japanese market, face-to-face meetings can help businesses build credibility and trust more effectively than simply contacting them via email.
• Attending just once isn't enough. Maintain a presence at events, proactively follow up, and build long-term relationships to gradually establish a business network in Japan.

Not mandatory. According to current regulations of the Japanese Ministry of Justice (as of 2015), foreigners can hold the position of Representative Director (代表取締役 – Daihyō Torishimariyaku) of a Japanese company of the Kabushiki Kaisha (KK) or Godo Kaisha (GK) type without residing in Japan or holding Japanese citizenship.

However, businesses need to be aware of two points:

• If opened as a branch office instead of establishing a legally registered entity (KK/GK), the aforementioned exemption does not apply; in this case, at least one representative residing in Japan is still required.
• In fact, although not legally required, many businesses still need someone present in Japan to facilitate practical operational procedures such as opening bank accounts and signing office lease agreements, as banks/landlords in Japan often prefer working with representatives residing in the country.

If the representative wishes to live and manage the company directly in Japan, the representative needs to apply for a Business Manager Visa in Japan.

Typically, the process of registering a company in Japan takes about 3-6 weeks, depending on:

• Choose your preferred business type (KK or GK).
• Level of completeness of the application.
• Preparing the office address.
• The process of opening a bank account.
• The specific legal requirements of each profession.

For agencies operating in fields that don't require specialized licenses, such as IT, Marketing, or Consulting, the implementation time is usually faster.

Meanwhile, sectors such as tourism or human resources may take longer due to the need to go through separate business licensing procedures after company formation.

No single profession is prioritized for Business/Management visas over others.

Japanese regulatory agencies primarily base their assessments on: feasibility of the business planpractical operational capabilities and the extent to which visa requirements are met.

However, in reality, fields such as IT/software, digital marketing, and business consulting often make it easier to build a business profile because:

• Initial operating costs are relatively flexible.
• It doesn't require many specialized licenses.
• A clear revenue model can be demonstrated.

The important thing is not the industry name, but what the business needs to demonstrate:

• They have a physical business office.
• There is a viable business plan.
• There is sufficient funding.
• It has the potential to generate revenue in Japan.

To operate a paid job placement service in Japan (有料職業紹介事業), businesses need to meet the financial requirements as stipulated by regulations.

Some basic requirements include:

• Minimum net worth of 5 million yen per office.
• There must be a minimum of 1,5 million yen in cash or bank deposits in the company's name.
• An additional 600.000 yen will be added for each additional office.

In addition to capital requirements, businesses also need:

• Applying for a business license to operate an employment agency.
• Appointing a person in charge of job placement (職業紹介責任者).
• Meets standards for office operations and candidate information management.

If a business wants to implement a labor dispatch model (労働者派遣), it needs to apply for a separate license as required by regulations.

A traditional office is a type of business where a company leases a private office space in a commercial building under a medium- or long-term contract.

When renting a traditional office, businesses have independent workspace and can arrange furniture and work areas according to their needs.

However, all renovation, construction, or structural modification activities must comply with the building owner's regulations and Japanese law.

Before signing a traditional office lease agreement in Japan, businesses should carefully review the terms and conditions related to:

• Cost of restoring to its original state (Genjō Kaifuku).
• Regulations regarding office renovation and construction.
• Fire safety requirements.
• Expenses incurred during the rental period.
• Conditions for termination, renewal, and obligations under the contract.

Businesses should request that the building owner or landlord provide all relevant documents, quotations, and regulations to proactively assess the total investment cost and avoid unexpected expenses during operation or at the end of the lease agreement.

In Japan, a virtual office is not a physical office space but rather a service that provides a business address along with supporting amenities such as mail receiving, parcel forwarding, and other additional services as needed.

Essentially, a business does not rent a fixed workplace but uses a provided address for transactions, receiving mail, and in some cases, may register its business according to the provider's terms and conditions.

Services typically included in a virtual office package:

• Provide a business address: Provide a recognized physical address for company registration at the Japanese Legal Affairs Bureau if all address usage requirements are met.
• Mail and parcel reception: The provider receives mail, documents, or parcels sent to the virtual office address on behalf of the business.
• Mail forwarding: Assists in resending letters and documents to the company's physical address or a designated address.

However, a virtual office does not include a fixed physical workspace, unless the business subscribes to additional services.

This is a cost-effective solution suitable for startups, small and medium-sized enterprises (SMEs), freelancers, or foreign companies surveying the Japanese market before investing in a physical office.

Important note: If your company plans to apply for a Business Manager Visa, a virtual office will not meet the requirements of the Japan Immigration Bureau (ISA).

According to ISA regulations, visa applications must demonstrate that the business has an independent business location with a physical workspace separate from the residence and appropriate to the scale of operations.

Therefore, in this case, businesses should choose either a Traditional Office or a Serviced Office with independent workspaces from the outset to avoid incurring costs and time switching office types midway through the visa application process.

Serviced offices are a type of private office space that is fully equipped with facilities and support services, allowing businesses to use the office immediately without further investment in furniture or office infrastructure.

This is a suitable option for foreign businesses that want to:

• Establish a company or open a representative office.
• Launching a business within a short period of time.

Compared to traditional offices, serviced offices help businesses shorten preparation time and significantly reduce initial investment costs.

However, before choosing a service office in Japan, you need to consider the following:

• Check if the office address is permitted for use in company registration.
• Verify that the office meets the business location requirements if the business intends to apply for a Business Manager Visa.
• Clarify which services are included in the rental fee and any additional charges such as meeting room use, parking, printing, or overtime work.
• Review the lease term, renewal conditions, contract termination, and related fees.

Coworking spaces are a shared office model where multiple individuals/businesses share a workspace with common amenities such as desks, internet access, meeting rooms, printers, reception areas, and a pantry.

This is a popular option for startups, freelancers, and foreign businesses looking to quickly establish a presence in Japan at a reasonable cost.

Common seating types in Coworking Spaces:

• Flexible seating (Hot Desk): You can choose any empty seat in the shared workspace.
• Dedicated Desk: They use a fixed desk, often accompanied by a personal locker for storing documents and equipment.
• Phone Booth or Focus Booth: Soundproof space for online meetings, phone calls, or work requiring concentration.

According to the Official announcement regarding the revision of the provincial regulations on the "Business - Management" residence status. Under ISA, the standards for capital, personnel, and office space have changed significantly:

Two changes that directly affect office selection are:

• Increase investment capital requirements sixfold;
• Recruitment of full-time employees is mandatory.

These changes mean that businesses not only need a registered business address but also an office that meets their actual operational needs, with suitable space and facilities to arrange workspaces for managers and employees.

Follow the instruction Clarify the residency status standards for foreign businesspeople. According to ISA, businesses applying for a Business Manager Visa must demonstrate that business and management This is done in reality, through a physical business location (事業所の確保・存在), and not just on paper.

Virtual offices and free-address coworking spaces (without a fixed private room) do not meet this requirement for two reasons:

• There is no fixed physical workspace.A virtual office only provides an address for receiving mail; it does not have a physical workplace for authorities to verify business operations.
• No guarantee of exclusive use.With free-address coworking, businesses don't have a fixed, separate workspace, while from October 16, 2025, the office must also have enough space to accommodate at least one full-time employee, something that the flexible seating model (Hot Desk) cannot provide.

Therefore, if a business plans to apply for a Business Manager Visa, it should rule out these two models from the outset, opting instead for a serviced office or a traditional office with independent workspaces.

In principle, the ISA regulates the use of private residences as business premises. Not accepted, both before and after the 2025 reforms. The main reason:

• It is difficult to separate personal life from business activities.Authorities find it difficult to verify whether that address is actually used for business operations or is simply registered to legitimize visa applications.
• Failing to meet the standards of appropriate business scale.With the new requirements for full-time employees and a minimum registered capital of 30 million yen, a typical apartment or house would find it difficult to demonstrate sufficient operational capacity for the scale of business required.

A rare exception might be considered if the property has a completely separate area exclusively for business use (e.g., with a separate entrance, space entirely independent from living quarters), but in practice very few such applications are approved, so businesses should not bet on this option.

Based on the above regulations, an office that meets the requirements to register a company and apply for a Business Manager Visa in 2026 must simultaneously satisfy the following criteria:

• There is a valid address for registration at the Department of Justice.: Meeting the requirements for registering the company's registered address (本店所在地) according to the procedure Commercial registration - legal entity at the Legal Affairs Bureau of Japan.
• A separate workspace with clearly defined boundaries.: Separate from personal living spaces or shared spaces with other businesses.
• Used continuously and for a long period of time.This does not mean the meeting room is rented by the hour or that it is for short-term use.
• Sufficient space to accommodate a manager and at least one full-time employee.: Meeting the mandatory recruitment requirements under the new regulations.
• This can be proven by a valid lease agreement.Registered under the company name (not an individual), clearly stating the purpose of use as a business office.

With these standards, Traditional office , and The service office has private rooms. These are the two most suitable options for businesses planning to apply for a Business Manager Visa.

The Japan Immigration and Residence Management Agency (ISA) has stated that using a private residence (Home Office) as a business location is, in principle, not permitted.

According to ISA regulations, businesses wishing to apply for a Business Manager Visa must have an independent business location that is appropriate to their size and actual operations.

If a business plans to apply for a Business Manager Visa, it should choose a Traditional Office or a Serviced Office with a separate office space to meet business premises requirements and minimize risks during the application process.

ISA regulations on business formation (Source: ISA)

If your business operates remotely and doesn't yet need to apply for a Business Manager Visa or go through procedures requiring a physical business location, renting a physical office is unnecessary in the initial stages.

However, if the business plans to establish a company, apply for a Business Manager Visa, open a corporate bank account, or conduct business activities that require demonstrating a presence in Japan, having a suitable office will be crucial.

Businesses should also note that models such as:

• Virtual Office;
• Seating in a coworking space;
• This address is for company registration purposes only.

These models often do not meet the independent business location requirement for a Business Manager Visa application.

Guarantor Company A guarantor company is a company that undertakes to fulfill the tenant's financial obligations to the building owner, including rent and other contractual obligations.

Not every case requires a guarantor company. However, many building owners in Japan require businesses, especially foreign or newly established businesses, to have a guarantor company to guarantee payment of rent and other contractual obligations.

If the building owner does not require a guarantor company, the business may be required to use a personal guarantor or meet other conditions as per the landlord's policy.

Renting a virtual office is a legal practice in Japan and is often chosen by foreign businesses when:

• Register your contact information and receive mail;
• There is no immediate need for office space.
• We want to optimize costs during the initial operating phase;
• Build a strong corporate image by having your business address located in a prime location.

However, a Virtual Office is not always suitable for every purpose.

For businesses planning to apply for a Business Manager Visa or needing to demonstrate a physical business location, presence, and business operations in Japan for certain administrative procedures or transactions, virtual offices often fail to meet the requirements due to the lack of independent workspace and physical business premises.

It's possible, but it depends on the lease agreement. If the agreement stipulates that the return of the premises must be carried out by the building owner or a unit designated by the building owner, the business must comply with this provision.

Unless otherwise specified in the contract, the business may perform the restoration itself or hire another entity, but must obtain the lessor's approval and ensure that the premises are restored to the condition required by the contract.

According to the data of Japan National Tourism Organization (JNTO)In 2025, Japan is expected to welcome 42,68 million international visitors, a 15,8% increase compared to 2024, and the first time the number has exceeded 40 million in a single year.

This is the highest number since Japan began tracking international visitors, demonstrating the country's growing appeal to tourists worldwide. The sharp increase in visitor numbers also translates into a greater demand for businesses providing travel services, tour bookings, guides, transportation, and specialized tourism products.

Not only did the number of visitors increase, but the total spending of international tourists in Japan also reached a new record high.

According to the Consumer trend research According to data released by the Japan Tourism Agency, total spending by international tourists in 2025 is expected to reach approximately 9.455,9 billion yen, a 16,4% increase compared to the previous year.

This shows that the Japanese tourism market is not only expanding in scale but also has increasing economic value. For newly established travel companies in Japan, this is a positive sign because tourists tend to be willing to pay more for quality services, experiential tours, and personalized travel products.

The growth of the tourism industry is not a short-term trend but is part of the Japanese government's long-term development strategy.

According to the National Tourism Promotion Basic Plan approved by the Japanese Cabinet in 2026, the government aims to achieve the following by 2030:

• Attract 60 million international visitors each year.
• Tourism revenue reached 15.000 trillion yen.

Compared to the 2025 figures, the number of international visitors is still approximately... 40% growth potential to achieve the target by 2030. This shows that the tourism industry will continue to receive investment and support from the Government for many years to come, creating more opportunities for new businesses to enter the market.

One notable aspect of Japan's tourism industry is the relatively diverse composition of its international visitors.

According to the JNTO statisticsIn 2025, the largest source markets for tourists to Japan will include:

• Korean
• Chinese
• Taiwan
• Mỹ
• Hong Kong

In addition, the number of visitors from many other countries is also growing strongly. By 2025, Uc surpassing the milestone for the first time. 1 million visitors, while Mỹ first time crossing 3 million visitors.

Not being overly dependent on a single market allows the Japanese tourism industry to be more resilient to economic fluctuations or policy changes in individual countries. At the same time, it also provides an opportunity for businesses to develop a wider range of products tailored to different international customer groups.

In addition to the goal of increasing the number of international visitors, the Japanese government is shifting its focus to Improving the quality of tourism industry growth.

According to the guidelines in the National Tourism Promotion Master Plan, policies in the coming period will focus on:

• Developing sustainable tourism.
• Increased spending by international tourists.
• Attracting tourists to areas outside of traditional tourist centers.

This orientation opens up many opportunities for businesses to establish travel companies in Japan, especially those developing experiential tourism products, community tourism, themed tours, or exploring new destinations in local areas.

Instead of competing directly with large businesses in Tokyo, Osaka, or Kyoto, new businesses can choose niche segments with lower competition levels but still benefit from the government's tourism promotion policies.

This is the highest category, allowing for all types of business activities, including organizing all-inclusive tours abroad.

• Licensing authority: Minister of Tourism Department (観光庁長官)
• Limit: International package tours, domestic package tours, customized tours, tour arrangements.
• Margin (営業保証金): 70.000.000 yen, if joining a travel association (弁済業務保証金分担金): 14.000.000 yen
• Minimum benchmark assets (基準資産): 30.000.000¥
• Mandatory appointment of a travel operations manager.

Category 2 participants are not allowed to organize their own all-inclusive overseas tours, but they are free to organize all-inclusive domestic tours nationwide (without regional restrictions).

• Licensing authority: Governor of the province where the headquarters is located (主たる営業所の所在地を管轄する都道府県知事)
• Allowed: We organize and sell all-inclusive domestic tours (no regional restrictions, applicable nationwide); accept tour orders both domestically and internationally; and provide travel arrangement services both domestically and internationally.
• Deposit: 11.000.000 yen if you join the association: 2.200.000 yen
• Minimum benchmark assets: 7.000.000¥
• Mandatory appointment of a travel operations manager.

Tier 3 only allows organizing all-inclusive domestic tours within the vicinity of its office location (not nationwide like Tier 2), but customized tours and arranged services are not limited by region.

• Licensing authority: Governor of the province where the headquarters are located
• Allowed: The company organizes and sells all-inclusive domestic tours, but only within the city where its office is located and surrounding areas; it accepts tours on order and provides travel arrangement services without geographical limitations (both domestic and international).
• Licensing authority: Governor of the province where the headquarters are located
• Deposit: 3.000.000 yen if you join the association: 600.000 yen
• Minimum benchmark assets: 3.000.000¥
• Mandatory appointment of a travel operations manager.

This category has the lowest financial requirements, making it suitable for startups focusing on local experiential tourism. Unlike category 3, all three types of services (domestic package tours, customized tours, and arranged services) are limited to the area surrounding the office location.

• Allowed: They offer all-inclusive tour packages, accept tour orders, and provide travel arrangement services, but all three types of services are limited to the city where their office is located and surrounding areas.
• Licensing authority: Governor of the province where the headquarters are located
• Deposit: 150.000 yen if you join the association: 30.000 yen
• Minimum benchmark assets: 1.000.000¥
• Mandatory appointment of a travel operations manager.

Travel agencies do not organize tours themselves but only perform services authorized by another travel company (旅行業者から委託された業務).

• Allowed: Performing travel services as authorized by another travel company, not organizing tours independently.
• Licensing authority: Governor of the province where the headquarters are located
• Minimum margin/standard assets: Not required
• The appointment of a travel operations manager remains mandatory.

This applies to accommodation establishments (hotels, ryokan, etc.) that are recognized in the tourism development plan.

• Allowed: Performing services authorized by other travel companies, but limited to the recognized tourist area and only for guests staying at the establishment.
• Margin / Standard Assets: Not required
• Person in charge: They can be replaced by someone who has completed the training course; they do not necessarily have to be an official travel operations manager.

Before applying for a travel agency business registration, the company must have already established a company in Japan, usually a joint-stock company (株式会社) or a limited liability company (合同会社).

In the company's charter (定款) and legal entity registration certificate, the business purpose must clearly state whether it is tourism business or travel agency business in accordance with the Law on Travel Business. If this information is missing, the application will be rejected, and the business must amend its charter and re-register before submitting the application for a license.

This is the condition that the licensing authority checks most carefully, to ensure that the company has the capacity to compensate customers should any problems arise. It consists of two elements:

• Minimum required assets: calculated using the formula: total assets minus non-performing assets (bad debts, intangible assets such as trademarks), minus total liabilities, minus the deposit amount. The required amount varies depending on the registration category, from 1.000.000 yen to 30.000.000 yen;
• Business deposit or alternative contribution if joining a travel association (equal to 1/5 of the original deposit).

When establishing a travel company in Japan, businesses need to meet the requirements for personnel managing travel operations. According to Japanese law, each... business office Each travel company or travel agency must appoint a qualified Travel Operations Manager to oversee and manage its business operations.

Travel agency managers are responsible for ensuring that office operations are conducted in accordance with regulations, including explaining terms and conditions, providing necessary information to customers, processing travel service contracts, and controlling service quality.

The person appointed to this position must pass the national certification exam for travel industry professionals organized by the Japan Tourism Agency. Depending on the scope of operations, the company needs to select personnel with the appropriate certification:

• Comprehensive Travel Business Management Certificate (総合旅行業務取扱管理者): for businesses operating both international and domestic tours;
• Domestic Travel Agency Management Certificate (国内旅行業務取扱管理者): applicable to businesses that only operate tourism products within Japan;
• Regional Travel Service Management Certificate (地域限定旅行業務取扱管理者): suitable for businesses that only organize tours within a specific region, city, or locality.

Therefore, before establishing a travel company in Japan, businesses need to clearly define the type of tourism business they intend to operate—international, domestic, or regional—in order to select management personnel with appropriate certifications, ensuring compliance with licensing requirements and legal operation in Japan.

Here are some points businesses should keep in mind:

• If the office handles international tours, the appointed person must possess a comprehensive certificate.
• A person can only be listed as the manager for one entity. a single office, not allowed to manage multiple branches simultaneously.
• Offices with 10 or more employees responsible for travel services must appoint at least two travel operations managers.
• After being appointed, the manager must attend a training course organized by the travel association every five years.

This is usually biggest barrier For newly established companies, especially those owned by foreigners, the exam is conducted entirely in Japanese and requires in-depth knowledge of travel law, geography, and transportation operations.

The Law on Travel Business stipulates 11 cases in which registration applications are subject to mandatory rejection, the most common of which include:

• Previously had their travel agency or tour operator license revoked, and less than 5 years have passed since the revocation date.
• Previously convicted of imprisonment or fined for violating the Travel Business Law, and less than 5 years have passed since completing the sentence.
• Being a member of a violent organization (according to the Law on Prevention of Unlawful Conduct by Members of Violent Organizations), or having left such an organization less than 5 years ago.
• Having committed fraudulent acts in the travel industry within the 5 years prior to submitting the application.
• Minors who lack full legal capacity may have legal representatives who fall into one of the above categories.
• Individuals with limited capacity due to mental/physical issues as defined by the Ministry of Land, Infrastructure, Transport and Tourism, or individuals who have been declared bankrupt and have not yet had their rights restored.
• For legal entities: if any member of the management board falls under the above-mentioned categories.
• It is not possible to demonstrate that a valid Travel Operations Manager can be appointed to each office.

In addition to the legal, financial, personnel, and eligibility requirements mentioned above, businesses need to prepare the following practical conditions to ensure their application is approved and the company operates legally in Japan:

• Fixed business office (営業所): has a physical addressRegistration is not permitted at virtual addresses or regular residential apartments (depending on provincial regulations).
• Appropriate residency status If the representative is a foreigner: a valid Business/Management visa (経営・管理) is usually required, separate from the travel agency registration procedure, but mandatory for legally operating the company in Japan.
• Price list and terms and conditions of travel contracts (旅行業約款) The license must be publicly displayed at the office after it is granted.

For foreign investors wishing to directly manage businesses in Japan, a Business/Management Visa (経営・管理ビザ) is one of the most important requirements.

Since 16/10/2025The Japanese Immigration Bureau has implemented new standards to curb the practice of establishing businesses solely for the purpose of obtaining residency status. Compared to before, the requirements for this type of visa have been significantly tightened.

Of these changes, the requirement to raise the capital threshold from 5 million yen to 30 million yen is considered the most significant. Although the Travel Business Act only requires a lower standard asset level for some types of licenses, foreign investors must still meet the capital requirement if they need to apply for a Business-Management Visa to directly operate a business.

Therefore, many businesses choose to appoint a Japanese national or a long-term resident as their legal representative, while the foreign investor holds the role of shareholder or capital contributor.

According to regulations, each business office Travel agencies must have at least one full-time Travel Agency Operations Manager (旅行業務取扱管理者).

To obtain this certificate, candidates must pass a national examination conducted entirely in Japanese, covering travel law, tourism geography, transportation operations, and various other specialized knowledge areas.

For foreigners new to Japan, obtaining certifications on their own is often not feasible in a short period of time. Therefore, most businesses have to recruit personnel who already have certifications or collaborate with experienced professionals in the industry. This is one of the biggest challenges regarding personnel when establishing a travel company in Japan.

When applying for a travel agency business license, enterprises must demonstrate that they meet the required standard asset level (基準資産額).

Determining the standard asset value is not based solely on the registered capital but must also be reflected in the balance sheet prepared according to Japanese accounting standards. Certain types of assets or receivables may not be accepted by regulatory authorities when calculating financial capacity.

For newly established businesses or investors unfamiliar with the Japanese accounting system, preparing financial documents in accordance with regulations often requires the assistance of an accountant or local expert.

After establishing a company, businesses need to open a bank account to conduct financial transactions and complete various subsequent procedures.

However, Japanese banks typically conduct thorough due diligence on newly established businesses, especially those with foreign investment.

In addition to legal documents, banks also consider many other factors such as:

• The duration of residence of the representative in Japan.
• Physical office address
• Business plan
• The long-term viability of the business

If the account opening process is delayed, it can also affect the business's progress in depositing funds, paying fees, and completing the application for a travel business license.

One of the key requirements for establishing a travel company in Japan is that the business must have a physical business location.

And according to the official guidelines of the Japan Immigration Bureau on the revised Business-Management visa standards (effective from October 16, 2025), businesses must have suitable office Given the scale of operations, using a residential property as a business office is, in principle, not permitted.

Meanwhile, the commercial real estate market in Japan has many unique characteristics. Many landlords require businesses to have a guarantor who is a Japanese citizen or legal entity, and to demonstrate financial capability before signing a lease agreement.

For foreign investors unfamiliar with the local market, finding an office that meets legal requirements, is cost-effective, and conveniently located often takes considerable time.

Yes. Vietnamese citizens can establish and own travel companies in Japan without needing Japanese citizenship. The deciding factors are the residency status that allows for business operations and the completion of travel business registration. Those from Vietnam often also need a Business Manager Visa.

It's not advisable. Both the regulations for registering a tourism business and the regulations for Business-Management visas (after the 2025 amendments) require a physical, independent office location. Virtual offices often fail to meet this requirement and are likely to result in applications being rejected during the initial assessment phase.

There are no regulations regarding the minimum registered capital required to establish a travel company in Japan. However, to obtain a travel business license, businesses must meet standard asset and deposit requirements, with specific amounts varying depending on the license category, specifically:

If a foreign investor intends to apply for a Business Manager Visa to directly manage a company in Japan, it should be noted that the visa application may require the business to meet a minimum capital contribution requirement as stipulated by current regulations. This is a visa requirement and does not replace the standard asset and deposit requirements when applying for a travel agency business license.

In addition to financial requirements, businesses also need to budget for company formation, office rental, personnel recruitment, accounting, and operating expenses. Therefore, the total capital required will depend on the size and business model of each enterprise.

GLA assists businesses in consulting on financing options suitable for each type of travel license, helping them prepare the necessary financial resources and optimize costs right from the start.

Yes. Businesses typically need a clearly defined business location to register as a legal entity and meet operational requirements.

A company's address in Japan serves not only the purpose of business registration but also affects:

• Application for a license.
• Opening a bank account.
• Reputation with partners.
• The possibility of obtaining a business management visa.

Some newly established businesses may opt for small offices or shared offices (depending on the case), but they need to ensure compliance with legal regulations and tourism industry requirements.

Yes. Japan requires each business office Travel agencies must have a designated Travel Operations Manager responsible for overseeing tour business operations, ensuring compliance with legal regulations, managing contracts with customers, and handling any arising issues.

Businesses can utilize internal staff or recruit individuals with appropriate certifications in Japan.

Businesses can handle the procedures themselves if they have a good understanding of Japanese law and a local team. However, for foreign investors, using professional support services can help:

• Shorten the time it takes to set up a company.
• Minimize errors in documentation.
• Understand the licensing requirements for the tourism industry.
• Support is provided in accounting, tax, and operational matters after establishment.

Especially for industries with specific requirements, such as tourism, proper preparation from the outset will help businesses avoid incurring modification costs in the future.

With experience in supporting businesses to expand their international operations, GLA provides comprehensive consulting and support services for company formation in Japan, helping businesses optimize the process from initial preparation to actual operation.

An excellent business operating in a market that is too small will still struggle to deliver attractive returns for investors. Therefore, before considering the product or revenue, investment funds usually assess market potential.

According to the CB Insights43% of startups fail due to a lack of market demand (poor product-market fit), making it the most common cause of failure.

43% of startups fail because they lack market demand.

Investors often ask questions such as:

• Is the target market large enough?
• How much is this industry growing each year?
• Can the business expand into regional or international markets?
• What will market trends be like in the next 5–10 years?
• Do the company's products meet market demand?

Investors also need to pay special attention to the level of market acceptance of the product (Market Traction).

A product is considered to have potential when the number of users or customers grows steadily over a short period of time.

For example, the user rate increased by approximately 10% per week, maintained consistently for 4–5 weeks. This is a positive sign, indicating that the product is gradually achieving Product-Market Fit and has the potential for future expansion. At the same time, it's an impressive indicator that convinces investors to invest in the company.

Investors don't buy current results, they buy... future growth potentialThey want to know if the business can increase revenue many times over without increasing costs at a corresponding rate.

A scalable business model typically possesses the following characteristics:

• Revenue has grown steadily year after year.
• Profitability improves as scale increases.
• It is possible to expand into multiple markets without having to rebuild the entire system.
• The cost of maintaining the company's sustainability until it recoups its investment or reaches the next funding round (Important).

For many venture capital funds, the amount of money they want to raise is less important than what milestones that money will help the company achieve in the next 12–18 months.

For example, two startups are both seeking $1 million in funding. Startup A only states that the capital will be used for "expanding operations".

Meanwhile, Startup B clearly outlined its plan to use the capital to sustain an 18-month runway, expand its product development team, achieve a $2 million ARR (Annual Recurring Revenue) and increase its number of paying customers fivefold before its Series A funding round.

Clearly, Startup B will inspire greater confidence because investors can see a concrete growth roadmap, measurable goals, and the ability to use capital efficiently, rather than just seeing the need to raise funds.

Ideas may change, but the leadership team is the deciding factor in whether a business can adapt and grow.

First Round CapitalThe venture capital firm, which has invested in brands like Notion/Roblox, clearly states its investment criteria: the competence of the company's leadership team.

First Round Capital shares the common traits of outstanding founders.

This is one of the major barriers that many SMEs face when Establishing a foreign-owned company in Vietnam Unable to raise international capital.

According to the PwC Global Investor Survey94% of investors said they value the quality and reliability of company information when making investment decisions.

The PwC Global Investor Survey 2023 on factors influencing investment decisions.

Investors look not only at revenue but also want to understand the overall financial health of a business, including:

• The financial reports are complete and accurate.
• Stable cash flow.
• Tax obligations have been fulfilled in accordance with regulations.
• The accounting system is transparent.
• The ability to audit and retrieve data when needed.
• The ability to maintain sustainability

If a business cannot account for its financial data or has many opaque transactions, the due diligence process for investment (through a certified auditing firm) can halt fundraising even if the business is experiencing strong growth.

International investors assess not only the potential for profit but also the level of risk involved in an investment.

According to the PwC Global Investor Survey 2023, more than 70% of investors believe that governance and sustainability factors have a direct impact on the long-term value of a business.

The sustainability of a company is a key factor in an investor's decision.

Before investing, they usually check:

• The legal structure of the business.
• Is the ownership of the shares clearly defined?
• Status of trademark, patent, and intellectual property registrations.
• Job Comply with tax regulations, AML/KYC and related regulations.
• Corporate governance and risk management policies.
• Comply with ESG and sustainability regulations..

Many businesses believe that successful fundraising depends on a well-designed pitch deck or the ability to present effectively to investors.

However, the reality is that most deals fail before reaching the negotiation stage because the businesses are not ready in terms of legal structure, finance, governance, and growth strategy.

According to the Harvard Business Review In the topic of Engaging with Your Investors, investors are not just investing in an idea; they are investing in a business that has the potential for growth, is well-managed, and is well-equipped to scale.

Similarly, Y Combinator, A guide to seed fundraising It was also emphasized that startups should only raise capital when they can tell a compelling story based on data, demonstrate growth, and have a credible business structure to secure funding.

Advice from Y Combinator, a well-known American venture capital fund.

Besides meeting criteria such as business model, founding team capabilities, growth rate, and expansion potential, there is one crucial factor that is often underestimated by businesses: the corporate structure.

In fact, many international investment funds not only assess whether a business is worth investing in, but also consider whether Can they invest in that business in a way that is favorable, transparent, and legally secure?

That is why the majority of startups and high-growth businesses in Southeast Asia choose to establish their parent companies in international financial centers such as Singapore or Hong Kong to raise capital, while the operating company continues to operate in the host country.

This model makes it easier for investors to execute investment transactions, manage share ownership, implement ESOPs, conduct subsequent funding rounds, and prepare for future IPOs or M&A plans.

To help founders better understand these two financial centers, GLA experts have prepared the following data table:

The success of a fundraising deal depends not only on the quality of the business but also on the level of compatibility between the business and the investor (Investor-Founder Fit).

In fact, every investment fund develops an Investment Thesis – a set of principles regarding the industry, investment period, size, geographic area, and level of risk they are willing to invest in.

This means that a seed-stage AI startup might be highly valued by one fund, but not suitable for another fund that only invests in growth-stage businesses.

Similarly, a traditional manufacturing business would likely not attract attention from funds specializing in SaaS or DeepTech.

Therefore, before preparing a pitch deck or scheduling investor meetings, businesses need to answer one crucial question: Which investor is truly the right fit for my business?

First Round Capital's investment trends

SEEDS Capital is an investment platform under SG Growth Capital, operated by Enterprise Singapore (EnterpriseSG) and the Singapore Economic Development Board (EDB).

SEEDS Capital focuses on supporting early-stage technology startups in Singapore with the potential to expand internationally through a co-investment model with Venture Capital funds and private investors.

There are many different forms of international fundraising, depending on the stage of development, business model, and goals of the enterprise. Common forms include:

• Equity Financing: Investors contribute capital in exchange for a stake in the business. This is the most common form of investment for startups and growth businesses, often used in pre-seed, seed, Series A, and subsequent funding rounds.
• Debt Financing: Businesses raise capital through loans from banks, financial institutions, or investment funds without sharing ownership. This form of financing is suitable for businesses that already have stable cash flow and the ability to repay debt.
• Convertible Note and SAFE: These are common funding tools for early-stage startups. Investors provide capital upfront, and the investment can be converted into equity in subsequent funding rounds under agreed-upon terms.
• Revenue-Based Financing: The business receives capital and repays the investor with a percentage of revenue until the contractual obligations are fulfilled. This model is suitable for businesses with recurring revenue but which do not want to dilute their shareholding.
• Strategic Investment: Funding comes from large corporations or businesses with the goal of establishing partnerships, expanding markets, accessing technology, or developing value chains.
• Government funding and innovation funds (Grant & Government Funding): Businesses can access support programs from the government, international organizations, or innovation funds for areas such as technology, research and development (R&D), digital transformation, or sustainable development.

Founders who are able to successfully raise capital typically possess three key qualities:

• The ability to choose the right opportunity.
• Exceptional ability in a specific field
• Deep understanding of the market, customers, and products.

Investors are not just looking for people with good ideas; they want to invest in founders who have a clear vision, the ability to see big opportunities, solve complex problems, and the commitment to turn their ideas into sustainable, growing businesses.

Permanent residents (永住者), settled residents (定住者), spouse visa holders of Japanese citizens, or spouses of permanent residents are free to open and operate restaurants just like Japanese citizens. These residency statuses do not restrict business activities. Therefore, you only need to focus on... establishing a Japanese company and apply for a F&B industry license.

If you are coming from Vietnam to Japan to open a restaurant, this is the residency status you need. According to the Japan Immigration and Residence Bureau (2025), From October 16, 2025, the conditions for this visa have been significantly tightened.Applicants for a visa must currently meet the following conditions simultaneously.

New regulations for applying for a Business Manager visa.

• Capital size of 30 million yen or more: The capital has been increased from 5 million yen to 30 million yen, a six-fold increase compared to before. For legal entities, this is the actual capital contribution paid; for individual business households, this is... Total investment in premises, annual employee salaries, and equipment..
• Hire at least one full-time employee: The hiring at least one full-time employee This is now mandatory, no longer an alternative to capital. This employee must be a Japanese citizen, a special permanent resident, or a foreigner with a status such as permanent resident, spouse of a Japanese citizen, or permanent resident.
• Japanese language proficiency equivalent to JLPT N2: A business person or a full-time employee needs to have Japanese language proficiency Level B2 or higher, equivalent to JLPT N2.
• Education or management experience: What business people need Master's degree, doctoral degree, professional qualification, or a minimum of 3 years of management experience..
• Business plan reviewed and approved by experts: The business plan must be an expert Regarding management and feasibility studies, for example, small and medium-sized enterprise diagnosticians, certified public accountants, or tax attorneys.
• A de facto independent office: Businesses must have independent business establishment, and, in principle, residential buildings should not be used as offices.

In terms of time, the Business Manager Visa application process takes 3 to 4 months. The average processing time is 124,5 days as of December 2025.

If you hold an Engineer/Humanities/Intellectual Visa (技術・人文知識・国際業務), you are not allowed to own and operate a restaurant. This type of visa is for individuals employed by businesses and does not permit them to establish and operate their own companies.

To become a restaurant owner, you need to switch to a Business - Management status and meet all the conditions mentioned above.

If you already held a Business Manager Visa before the reform, you are entitled to a three-year transition period. until October 16, 2028During this period, your renewal will not be denied simply because you haven't met the new standards. Instead, the agency will consider your business performance and prospects of meeting the new standards in the next renewal.

Furthermore, with each renewal, the authorities always check compliance with tax obligations and mandatory contributions (公租公課). Therefore, even during the transition period, you still need to maintain stable business operations and fulfill all tax obligations.

According to GLA experts, in reality, many applications are rejected because they were prepared based on the old capital threshold of 5 million yen. After the reforms effective October 16, 2025, misestimating the capital threshold of 30 million yen is the biggest risk that Vietnamese businesses need to avoid.

The food service industry in Japan maintains a steady growth rate, creating many opportunities for new investors.

According to the Japan Foodservice Association, the size of the food service industry in 2023 reached 24,1 trillion yenIf we include revenue from takeaway services, the total market size reaches 31,8 trillion yen.

The growth momentum continued into 2024, with industry-wide revenue increasing by 8,4% year-on-year. This marks the third consecutive year that the F&B industry has recorded positive growth, primarily driven by recovering consumer demand and a strong increase in international tourist arrivals.

The record increase in international tourists is becoming a major driver of revenue for restaurants in Japan.

In 2025, Japan is expected to welcome approximately 40 million international tourists, with total spending exceeding 9,4 trillion yen – the highest level ever recorded. Notably, spending on food and beverages will account for about 22–23% of total tourist spending, equivalent to approximately 5 trillion yen.

This means that restaurants, eateries, and cafes have the opportunity to reach not only domestic customers but also a large number of international visitors who want to experience local cuisine and international dishes.

Consumer trends in Japan are creating many opportunities for foreign restaurant models, including Vietnamese cuisine.

Japanese people have a habit of eating out frequently and are increasingly fond of new culinary experiences. Besides traditional dishes, consumers are also paying more attention to:

• International cuisine and local dishes from many countries.
• Healthy menu
• Plant-based dishes
• Takeaway and delivery services.

This trend gives Vietnamese restaurants more opportunities to reach Japanese customers and expand revenue through various sales channels.

The large Vietnamese community is one of the biggest advantages when opening a restaurant in Japan.

According to the Japan Immigration Bureau, by the end of 2025, There are 681.100 people. Vietnamese people living in Japan rank second among foreign communities.

At the same time, the total number of foreigners in Japan has reached 4.125.395 people, surpassing the 4 million mark for the first time and increasing by 9,5% compared to the previous year.

For Vietnamese restaurants, this community offers many advantages, such as:

• A stable customer base right from the start of the business.
• We are looking for personnel who are fluent in Vietnamese and knowledgeable about Vietnamese culinary culture.
• Word-of-mouth effect and brand promotion within the Vietnamese community in Japan.

Tokyo and Osaka remain the two most vibrant F&B markets, but many other cities in Japan also offer attractive investment opportunities at lower costs.

If you want to optimize your initial investment costs, cities like Fukuoka , and Sapporo These are worthwhile options to consider. Compared to Tokyo, these locations often offer:

• Lower rental costs
• More reasonable operating costs
• Policies to support startup businesses
• Support programs for foreign entrepreneurs, including Startup Visas in certain locations.

Choosing the right city from the start will help you balance your budget, reach the right target customer group, and create a favorable foundation for future expansion plans.

According to GLA experts, many Vietnamese businesses tend to prioritize Tokyo when opening restaurants. However, for some F&B models targeting local customers or aiming to optimize operating costs, cities like Fukuoka, Sapporo, or other developing areas may offer higher investment returns. The choice of business location should be based on the restaurant model, target customer group, and investment budget, rather than focusing solely on major cities.

You need to have legal status to be allowed to operate a restaurant in Japan.

If you are a foreign investor and want to operate a restaurant as a business, you need to establish a company in Japan. Two common business types leaves Godo Kaisha (GK) , and Kabushiki Kaisha (KK).

If you directly manage a business in Japan, you will also need to meet the residency requirements or apply for a visa. Business Manager Visa if you are eligible to apply for a visa.

Restaurants must have a fixed business location and comply with regulations regarding the use of premises.

The business address will be used for:

• Registering a business
• Applying for a food service business license
• Tax registration
• Implement fire safety procedures (if applicable).

Before signing a lease agreement, you should check the land use plan (用途地域), renovation requirements, and the ability to meet food safety standards.

This is a mandatory requirement for all restaurants, eateries, and cafes serving food and drinks in Japan.

The license is issued by the Public Health Center (保健所) after the business establishment fully meets the standards for hygiene, processing area, and equipment.

Businesses are only permitted to operate restaurants after obtaining the necessary permits.

Every food service establishment in Japan must have at least one Food Safety Officer. This individual does not necessarily have to be the owner or manager, but must be a permanent staff member and not simultaneously manage multiple establishments.

This person is responsible for overseeing the storage of raw materials, processing procedures, kitchen hygiene, and compliance with food safety regulations.

If you do not have the appropriate certification, you or your designated staff member must participate in training as required by local regulations.

Businesses must meet hygiene and design standards before being granted an operating license.

Depending on the location, restaurants often have to meet requirements such as:

• The preliminary processing and processing areas are arranged logically.
• There are separate sinks for washing hands and for washing utensils.
• The water supply and drainage system meets standards.
• Suitable food storage equipment
• The ventilation and waste disposal systems ensure hygiene.

Authorities will conduct on-site inspections before issuing business licenses for food and beverage services.

Depending on your business model, you may need to complete some additional procedures before opening your restaurant.

For example:

• Fire safety procedures for facilities subject to these regulations.
• Declare business activities involving the sale of alcoholic beverages after midnight if the primary activity is serving alcoholic drinks.
• Tax registration and payroll reporting
• Register for social insurance and labor insurance if you employ staff.

Note: Although all of the above conditions are important, Food service business license This is a mandatory requirement that all restaurants in Japan must meet before officially opening. Other procedures will depend on the size, type of business, and operating methods of each restaurant.

All restaurants, eateries, and cafes serving food and drinks in Japan must obtain a Food Service Business License before opening.

You will submit your application for a license to the Public Health Center (保健所) where your business is located. After receiving the application, the center will conduct an on-site inspection to assess food safety and hygiene conditions, processing areas, equipment, and layout before deciding whether to grant the license.

Since June 2021, Japan has merged the Beverage Shop License (喫茶店営業許可) with the Food Service Business License. This means that cafes that serve customers on-site now also have to register for the same type of license as restaurants and eateries.

The application for a license typically includes:

• Application for a license
• Business premises floor plan
• Information about the person in charge of food hygiene and safety.
• Business registration certificate (if established as a legal entity)
• Documents required by each locality

What will the authorities be checking?

• Food preparation and processing area
• Water supply and drainage system
• Food preservation equipment
• Handwashing and sanitation area
• Conditions for ensuring food hygiene and safety.

Only when the facility fully meets these standards will a license be granted.

Every restaurant in Japan must have at least one Food Hygiene Supervisor.

This person is responsible for establishing and overseeing food hygiene procedures, ingredient storage, controlling processing conditions, and instructing staff to comply with food safety regulations.

If you or the staff in charge do not have the appropriate certification, you must participate in a training course organized by the local authorities before the restaurant opens.

Some restaurants are required to complete fire safety procedures before opening.

If the establishment has a capacity of 30 or more people, including both guests and staff, or is subject to regulatory management, you need to:

• Appointing a person in charge of fire prevention and control.
• File a report with your local Fire Department.
• Complete the requirements for fire safety equipment and emergency exits.

Additionally, for some buildings with high traffic, you must also complete the procedure for declaring the building open for use before officially opening.

If the restaurant's main activity is serving alcoholic beverages after midnight, you must register with the police.

This regulation typically applies to:

• Bar
• Izakaya
• Lounge
• Pub

The application must be submitted to the local police department no later than 10 days before the opening date and can only be processed after you have obtained your Food Service Business License.

Conversely, restaurants whose primary activity is serving food, even if they sell beer or wine alongside the meal, are generally not required to follow this procedure.

Operating a business without proper registration can result in fines of up to 500.000 yen. This type of business is generally prohibited in residential areas, so it's necessary to check the area's zoning plan (用途地域) before signing any contract.

After establishing your Japanese company, you need to complete the tax registration procedures before opening your restaurant.

Some important procedures include:

• Declaration of establishment of a legal entity
• Registering a payroll payment facility
• Register for taxes as required.
• Perform accounting duties and maintain accounting records.

Completing these procedures in full helps businesses operate in accordance with regulations and minimize tax risks during the course of business.

Before opening your restaurant, you should keep the following points in mind:

• Check the area's zoning plan before signing a lease, especially if you plan to sell alcohol after midnight.
• Prepare the necessary permits right from the site renovation stage to avoid delays in the opening date.
• Establishing facilities that meet hygiene standards from the outset will minimize the need for repairs after inspections by authorities.
• If you lack experience working with Japanese authorities, you should use a consulting service to receive assistance in preparing your application and completing the necessary procedures in accordance with regulations.

The Japanese government maintains very strict regulations regarding tax, accounting, and labor compliance. For businesses with foreign owners or representatives, tax authorities or other relevant agencies may conduct regular or unannounced inspections to verify:

• Accounting records, invoices, and supporting documents.
• Tax declarations and payments are made in accordance with regulations.
• The actual operating status of the business.
• Employment practices and compliance with visa regulations (if applicable).

Therefore, from the outset, businesses should establish a transparent accounting system, maintain complete records, and utilize professional accounting services to minimize risks during audits.

In the F&B industry, location directly impacts revenue. Before renting a space to open a restaurant, you should conduct a survey:

• High pedestrian traffic during peak hours.
• Target customers in the area.
• The prices and business models of competing restaurants.
• Rental costs compared to projected revenue (rent should account for approximately...) 10% of revenue).

In addition, many regions in Japan also have policies to support new businesses, like:

• Preferential interest rate loans are available through local Chambers of Commerce and Industry (Japan Chamber of Commerce and Industry (“JCCI”), for example, through programs such as Marukei Loan (マル経融資) JCCI and JFC are collaborating on the implementation.
• Startup support program.
• Tax incentives or subsidies vary by province and city.

Understanding and leveraging these policies can help businesses significantly reduce investment costs and improve cash flow during the initial stages of operation.

Support policies and preferential interest rate loans from the local Chamber of Commerce and Industry.

Yes. Foreigners can absolutely open restaurants in Japan if they meet the regulations regarding business establishment, business licenses, and residency status under Japanese law.

If you directly manage and operate a restaurant in Japan, you may need to apply for a Business Manager Visa if you are eligible for one.

The cost of opening a restaurant in Tokyo varies considerably, depending on the business model, location, and size.

• For a small restaurant with 10 to 20 seats, the total startup capital typically ranges from 4 to 15 million yen.
• For a model with an average capacity of 40 to 80 seats, the cost can range from 15 to 75 million yen.

This is just an estimated cost. The actual cost depends heavily on the district you choose and the condition of the property, so you should create your own budget for your business model.

You should budget for six main expense categories:

• The initial cost of a business premises includes a security deposit, key money, and brokerage fees. This is usually the largest expense and can be equivalent to 3 to 10 months' rent, depending on the area.
• Costs for interior design and kitchen equipment.
• Licenses and processing fees.
• Raw materials and initial inventory.
• Working capital for the first 3 to 6 months of operation.
• Professional and contingency costs should typically add 10 to 20% of the total budget.

This cost structure is for reference only. For a more realistic estimate, you can contact the GLA expert team for advice based on your specific model.

There are several directions you might consider:

• Choosing a location with existing furniture from the previous establishment significantly reduces construction costs and improves ventilation.
• Rent or buy used kitchen equipment for low-risk projects.
• Start with a small-scale model or a delivery kitchen to test your idea before opening a larger restaurant.
• Consider partnering with a contractor to provide funding for the construction phase.

Each approach has its own advantages and disadvantages, so you need to consider them based on your business goals.

In most cases, yes. Establishing a business allows you to register for a food service business license, open a business bank account, sign a lease agreement, and fulfill tax obligations. The two most common types of businesses are Godo Kaisha (GK) and Kabushiki Kaisha (KK).

Contact the GLA team of experts for advice on the company formation process in Japan for restaurant and F&B businesses, tailored to the scale and goals of each enterprise.

If you want to optimize costs and operate flexibly, a Good Key Business (GK) is often the right choice. If you plan to build a brand, open a chain of restaurants, or raise capital in the future, a Limited Liability Business (KK) will provide an advantage in terms of reputation and scalability. The choice of business type should be based on the scale of your investment and your development direction.

Contact the GLA team of experts for advice on the right company structure for your business.

If you are familiar with legal regulations and proficient in Japanese, you can handle the procedures yourself. However, many foreign investors choose a consulting firm to assist them from business establishment, document preparation, license application, to post-establishment compliance consulting. This saves time, minimizes errors, and ensures a smooth opening schedule.

GLA accompanies businesses throughout the entire process of opening a restaurant in Japan, from advising on the choice of business type (GK or KK), company formation, preparing legal documents, assisting with obtaining food service business licenses, advising on opening bank accounts, tax registration, to post-establishment procedures.

Yes, but it depends on the worker's residency status. To qualify for a Business Manager Visa, full-time employees must be Japanese citizens, special permanent residents, or foreigners with status such as permanent residents, spouses of Japanese citizens, or permanent residents. Not all types of work visas are considered.

Yes. After establishing your company, you can open additional branches. However, each new location will still need to obtain its own food service business license and appoint its own person in charge of food hygiene. If you plan to expand with many branches from the start, a KK (Know Your Own) business model is usually more suitable than a GK (Good Customer) model.

One effective strategy is to collaborate with others. travel company established in Japan Alternatively, companies with tourism products in Japan, travel agencies, or tour operators in Japan can refer customers to your store. 

Through partnership agreements, stores can become a stop on tourists' sightseeing and shopping itineraries. This helps businesses reach a stable customer base without investing heavily in direct advertising.

After being granted by the Legal Affairs Bureau of Japan. Business registration certificateGK officially became an independent legal entity with full rights as follows:

• Signing a commercial contract.
• Open a corporate bank account.
• Hire staff.
• Owning property.
• Conduct business activities in accordance with Japanese law.

At the same time, GK must fully comply with all tax, accounting, labor, and related legal obligations throughout its operation.

One of the outstanding advantages of GK is its simpler establishment process and shorter registration time compared to KK.

After preparing all the necessary documents, businesses typically take about 7–10 working days to complete the registration process at the Department of Legal Affairs. Meanwhile, KK (a type of business registration) usually requires about 14–21 working days, due to the additional step of notarizing the company's charter before submitting the registration application.

Note from GLA: The above timeframe only applies to the legal entity registration step. After the company is established, businesses still need an additional 2–6 weeks to complete the procedures for opening a corporate bank account. This step often takes longer than expected and can affect the progress of business operations.

According to Japan's Corporate Law, GK does not specify a minimum registered capital. Legally, a company can be established with a registered capital of as little as 1 yen. This regulation has also applied to Kabushiki Kaisha (KK) since the Corporate Law was amended in 2006.

However, the actual registered capital level should be considered based on business objectives rather than simply meeting legal requirements.

According to GLA experts, businesses should consider the following three factors when determining their charter capital:

• Ability to open a bank account: Many banks will view applications more favorably if businesses have a reasonable level of registered capital.
• Reputation with partners: Registered capital is publicly available information in a company's records and can affect the level of trust when working with clients or suppliers.
• Plan for applying for a Business Manager Visa: If the representative intends to apply for this type of visa, the registered capital is also a factor to consider because the Japanese government needs to assess whether the company owner is truly working and contributing to Japan, and capital is an initial scoring criterion.

One key difference of GK is that it does not require the representative or contributing member to reside in Japan.

As a result, foreign businesses can establish companies without needing to find a resident director just to meet legal requirements. This helps reduce costs and provides flexibility during the initial investment phase.

However, businesses should note that The fact that there is no requirement to have a resident representative in Japan does not mean that the representative can immediately travel to Japan to manage the business.

If the representative wishes to directly manage the company, sign contracts, work with partners, or supervise employees in Japan, They still need to have the appropriate visa or residence status as required by Japanese law.

Similar to other types of limited liability companies, members of GK are only liable to the extent of the capital they have contributed to the business.

This helps limit financial risks to personal assets should the company incur debt or other financial liabilities during its operation.

One of the prominent legal features of GK is that members can proactively negotiate many aspects of the company's charter.

Besides specifying management and voting rights, the charter may also stipulate a profit-sharing ratio different from the capital contribution ratio, if all members agree.

For example:

• Member A contributes 70% of the capital but receives 50% of the profits.
• Member B contributes 30% of the capital, directly manages the business, and also receives 50% of the profits.

This mechanism is particularly suitable for businesses with multiple founders or a collaborative model between investors and those directly operating the business.

Therefore, businesses should carefully draft their Articles of Association right from the start. Amendments are necessary.

GK is suitable for businesses that are in the startup phase or want to test the market before scaling up.

You should consider establishing Godo Kaisha (GK) if you fall into one of the following categories:

• You are investing or starting a business in Japan for the first time and want to reduce setup costs.
• You open restaurant, cafe, or retail store on a small or medium scale.
• You want to complete the company registration process quickly so you can get your business up and running as soon as possible.
• You do not plan to raise capital from investors or issue shares in the near future.
• You want to directly manage and run the business with a simple organizational structure.
• You prioritize optimizing operating costs in the initial phase rather than building a complex management system.

For many Vietnamese businesses new to the Japanese market, GK represents a balanced choice between cost, flexibility, and the ability to meet legal requirements for doing business.

GK might not be the right choice if your business is looking to scale up or needs to build brand image from the outset.

You should consider your options. Kabushiki Kaisha (KK) instead of GK if:

• Do you have a development plan? restaurant chain or multiple branches in Japan.
• You intend raising capital from investorsinvestment funds or strategic partners.
• You frequently work with large corporations, banks, or listed companieswhere a company's reputation can influence the collaboration process.
• You want to build a professional business image right from the start.
• Do you plan to expand your operations into more markets or transfer shares in the future?

In these cases, KK often offers advantages in terms of reputation, governance structure, and long-term growth potential.

Optional.

If a business is small, has few transactions, and its manager has knowledge of Japanese accounting, it can certainly handle bookkeeping and tax filing itself using popular accounting software.

Conversely, if a business is unfamiliar with accounting and tax regulations in Japan or wants to reduce the risk of errors, it should hire an accountant or service company for assistance.

• Record the accounting entries.
• Prepare financial statements.
• Tax settlement.
• Legal compliance advice.

Hiring an accountant saves businesses time and ensures that financial records are properly maintained.

The cost of establishing a Godo Kaisha (GK) will depend on whether the business handles it itself or uses a consulting service.

Typically, the cost includes:

• Business registration fees.
• Costs for engraving and registering a seal.
• Translation and notarization fees (if applicable).
• Legal or accounting consulting fees (if services are used).

In addition to the above fees, the registered capital is not considered a cost of establishment because this amount remains the property of the company and can be used for business operations after the business is registered.

Opening a bank account depends on each bank's credit assessment policy.

Some banks in Japan may require businesses to provide additional information about:

• Business model.
• Representative.
• Operating address.
• Customers and projected revenue streams.

For newly established businesses or those with foreign investment, the approval process may take longer. Therefore, businesses should prepare complete documentation and a clear business plan to increase their chances of approval.

While legally sound, it's not straightforward in practice. The process requires drafting new articles of association, notarization, updating tax registrations, and potentially renegotiating with banks or partners.

GLA recommends planning the type of legal entity with a 3–5 year roadmap from the outset.

Businesses can own a coffee shop and receive profits from Hong Kong without residing there. Business owners are not required to apply for a visa if they do not work directly in Hong Kong.

In this case, the business needs to have an on-site operational management team and meet the business compliance requirements stipulated by Hong Kong regulations.

If you plan to live and directly operate a coffee shop in Hong Kong, you will need to apply for the appropriate visa before entering the country for work or business purposes.

Below are the three most common visa options, depending on your personal profile:

Employment Visa (General Employment Policy) This is the most suitable option if the individual is appointed to a CEO position or a senior management role in a Hong Kong company. This visa requires a specific employment contract with a market-appropriate salary and qualifications relevant to the position.

Top Talent Pass Scheme (TTPS) Suitable if the individual belongs to one of the following three groups:

• having an annual income from HKD 2,5 million or more in the year prior to filing the application (Category A);
• Graduated from a top 100 university worldwide and have at least 3 years of work experience in the last 5 years (Category B);
• or graduated from a top 100 university in the world within the last 5 years with less than 3 years of experience (Category C, according to the annual quota).

The advantage is that this type of visa... No prior employment in Hong Kong is required before applying.and the initial stay can be up to 36 months.

Quality Migrant Admission Scheme (QMAS) This is for highly qualified individuals, assessed through a points system based on qualifications, experience, age, and special achievements. Similar to TTPS, prior employment in Hong Kong is not required to apply.

Note: If a Hong Kong company plans to hire foreign staff to operate the restaurant, each employee will also need a separate Employment Visa appropriate to their job position.

In Hong Kong, the tax levied on businesses is called... Profits Tax (Profit tax), not Corporate Income Tax as in many other countries. This is the only tax that a coffee shop operating in Hong Kong has to pay directly on its business profits.

The tax authority is the Hong Kong Revenue Department.Inland Revenue Department ("IRD")), and Profits Tax only applies to profits generated in Hong Kong.

Hong Kong applies a two-tiered profits tax system as follows:

Here's a real-world example:

If a coffee shop in Hong Kong makes a taxable profit HKD 1.500.000 over a fiscal year. The entire profit falls within the first HKD 2 million threshold, so the Profits Tax payable is:

HKD 1.500.000 x 8,25% = HKD 123.750

For comparison, if the profit margin is the same in some Southeast Asian countries with a corporate tax rate of 20% to 25%, the tax payable would range from HKD 300.000 to HKD 375.000. This difference is very significant for the operating cash flow in the initial phase of the restaurant.

This is what gives Hong Kong a distinct competitive advantage over most other Asian and international markets. When running a coffee shop in Hong Kong, businesses... Not Pay the following taxes:

For every cup of coffee you sell in Hong Kong No additional VAT will be charged.The listed price is the price customers pay; there are no hidden surcharges. This is a major difference compared to operating under the same model in Singapore, Vietnam, or Australia, where VAT/GST taxes significantly increase costs and complicate accounting.

Mandatory Provident Fund (MPF) It is a mandatory pension fund system under Hong Kong law, applicable to all businesses with employees. This is a mandatory expense that every coffee shop owner needs to factor into their operating budget before opening.

How MPF works:

Practical implications for a coffee shop: If your restaurant has 6 employees with an average salary of HKD 18.000/month each, the business owner's MPF cost would be:

6 employees x HKD 900 (5% x HKD 18.000)/month = HKD 5.400/month

This is a fixed monthly expense that needs to be factored into the operating budget from the outset, alongside employee salaries.

Yes. Hong Kong allows 100% foreign ownership, with no residency or local partner requirements. The first mandatory step is to establish a Private Limited company in Hong Kong before proceeding with any further procedures.

GLA provides full support for the entire company formation process in Hong Kong, from document preparation to obtaining the Certificate of Incorporation.

To open a coffee shop in Hong Kong, you will need at least: a Business Registration Certificate and an F&B license from FEHD (General Restaurant Licence or Light Refreshment Restaurant Licence, depending on the model).

If the establishment serves alcoholic beverages, the business needs to obtain a Liquor License from the Liquor Licensing Board.

GLA provides consulting services to help businesses choose the appropriate license type and guide them in preparing the necessary documents according to FEHD's requirements, helping them avoid common mistakes that lead to application rejection.

Hong Kong applies a two-tiered profit tax: 8,25% for the first 2 million HKD of profit and 16,5% for any amount exceeding that. Hong Kong has no VAT, no dividend tax, and no capital gains tax.

GLA provides consulting services to help F&B businesses determine appropriate tax structures, and also offers accounting and annual tax settlement services in accordance with the regulations of the Hong Kong Inland Revenue Department.

No visa is required if you only own and operate your business remotely. A visa is only necessary if the business owner plans to live and work in Hong Kong.

The three most common visa types are: Employment Visa, Top Talent Pass Scheme (TTPS), and Quality Migrant Admission Scheme (QMAS).

• Duration: Within 42 days of the company's founding anniversary.
• Form: Submit online via e-Registry or in hard copy.
• Fee: HK$105 if submitted on time, increasing to HK$3,480 if more than 9 months late.
• Note: Businesses are not allowed to ignore NAR1, even though The Hong Kong company is not operating.. 

The company secretary is responsible for maintaining and updating statutory registers, including:

• Register of directors and secretaries (current and former).
• Register of members and shareholders.
• Significant Controllers Register (SCR): one of the most important legal requirements for companies in Hong Kong.

Note: Authorities have the right to request an inspection of these records at any time. Failure to update or omission of these records will result in violations.

Whenever there is a change in personnel or company information, the Hong Kong company secretary must make a formal notification to the Companies Registry within 15 days.

The most common changes include the appointment or dismissal of directors and secretaries (Form ND2A), changes to the registered address (Form NR1), as well as updates to shareholder information and charter capital.

Hong Kong company secretaries are responsible for the procedural aspects of formal meetings, from drafting meeting notices and preparing documents and resolutions to recording meeting minutes.

This may seem like a simple task, but any formal oversight can affect the validity of business decisions.

The company secretary monitors and handles the renewal of the Business Registration Certificate with Hong Kong Inland Revenue Department, either annually or every three years, depending on the company's choice.

In addition to routine administrative duties, company secretaries also advise the board of directors on legal obligations, ensuring the company operates in accordance with its charter and complies with applicable regulations.

Businesses are required to have a company secretary from the outset. The company was incorporated in Hong Kong..

According to Section 474 of the Companies Ordinance (Cap. 622), this regulation applies immediately and without any extension or exception, even to newly incorporated companies.

Yes, but that individual must meet the condition of being an "ordinarily resident in Hong Kong".

Therefore, foreigners residing in Vietnam or other countries will not be eligible to assume this role, even if they possess a valid HKID.

Yes. According to Section 475(2) of Companies Ordinance (Cap. 622), the sole director of a Hong Kong company is not permitted to simultaneously hold the position of company secretary.

In this case, the business is required to appoint another individual who is a qualified resident of Hong Kong or use services from a valid TCSP license holder.

Yes. Being dormant does not mean a company is exempt from legal obligations. The business must still maintain a valid company secretary until the deregistration process with Companies Registry is complete.

According to Companies Registry regulations, businesses that submit their NAR1 late will be subject to a penalty fee starting from HK$870 if the delay is less than 3 months, and this can increase to HK$3,480 if the delay is more than 9 months.

Furthermore, in cases of prolonged violations, the Hong Kong company also risks criminal prosecution with a maximum fine of HK$50,000, plus HK$1,000 for each day of continued violation.

Yes. These are two completely different services with separate responsibilities.

In which:

• The company secretary is responsible for legal filings, annual reports, business change notifications, and administrative obligations with the Companies Registry.
• The accounting service is responsible for bookkeeping, financial reporting, and tax filing with the Inland Revenue Department.

Because each service has different procedures and compliance deadlines, businesses should not confuse or overlook either of these two important obligations.

According to legal regulations, the Hong Kong company must pay Form ND2A Register this with the Companies Registry within 15 days of the official effective date of the change of company secretary.

In fact, if the files and documents are fully prepared, the conversion and handover process usually only takes about 1–3 business days.

Federal corporate income tax is administered by the Internal Revenue Service (IRS), at a rate of fixed 21%, effective beginning in 2018 under the Tax Cuts and Jobs Act.

Previously, the highest federal tax rate was 35%, reducing it to 21% helps the US attracting foreign investment, while increasing global competitiveness.

This adjustment has brought the US corporate tax rate down to a more competitive level compared to many other countries.

Each state in the US has the right to set its own corporate income tax, independent of federal tax and not subject to IRS management.

• 44 states apply tax rates ranging from 1% to more than 10%, depending on the specific regulations of each state.
• Some states like Nevada, South Dakota, Texas, etc. no corporate income tax, but other taxes such as sales tax and franchise tax apply.

C-Corp is the only type of business entity in the US subject to direct corporate income tax at the corporate level. 

Businesses must pay taxes on profits after deducting eligible expenses, before distributing them to shareholders. Tax obligations for C-Corp include:

• Tax declaration by form Form 1120 (US Corporation Income Tax Return) with the IRS.
• Pay federal corporate income tax with 21% flat tax rate.
• Pay state corporate income tax according to the regulations of the state where the company is registered.
• Pay additional local business taxes if the city or county where you operate has specific regulations.

Note: Businesses may be taxed twice (double taxation) – once in corporate level, once when shareholders receive dividends, which could result in the actual total tax liability exceeding 30%

S-Corp businesses enjoy a special tax regime, not subject to federal income tax at the corporate level (meaning the business does not have to pay 21% tax like a C-Corp).

• Allocation mechanism:S-Corp passes all income, losses, deductions and credits to shareholders in proportion to ownership. 
• Tax declaration responsibility: Each shareholder must report the income received from the S-Corp on their personal income tax return.
• Applicable tax rates: The personal income of each shareholder is taxed under the pass-through tax mechanism.

Note: The S-Corporation type of business is only allowed for individuals who are US citizens and permanent residents in the US. Foreign investors will not be able to establish a company in the US under this type.

To qualify to operate under the S-Corp model, a business must meet the following two conditions: 

• Limit on the number of shareholders under 100 people.
• Ensure all shareholders are US citizens or permanent residents.

LLC is a type of business with a flexible tax mechanism, often chosen by small and medium-sized businesses when establishing a company in the US. In principle, LLCs are not subject to corporate income tax, unless the business voluntarily registers to be taxed as a C-Corp.

For a 1-member LLC, a US business needs: 

• Declare all income , and cost of the business on the owner's personal tax return by April 15 each year.
• Conduct reporting of foreign owner information through BOI report (Beneficial owner information report). 

For LLCs with 2 or more members:

The IRS considers this a type of partnership, however the company will not be subject to corporate income tax, instead each member will declare and pay personal income tax based on capital contribution or profit ratio divided within the company.

Businesses need to send tax return information regarding profit allocation by March 15th of each year, and each member will receive a Schedule K-1 to file with their individual tax return, due by April 15th.

GLA supports and advises businesses in determining the type of US company, optimizing income tax in the US during business operations, helping businesses operate their companies in the US effectively and sustainably.

There is no single formula for calculating federal corporate tax in the United States that applies to all types of businesses. 

Each model such as C-Corp, S-Corp, LLC has different tax calculation and filing methods depending on the IRS tax classification.

However, to determine the amount of corporate income tax payable, the following general formula can be used to calculate federal taxable income:

Taxable income = Total revenue – Eligible expenses – Tax deductions – Tax incentives

• Gross Income: Includes all sources of income such as sales, services, investments, interest, royalties, dividends, etc.
• Deductible Business Expenses: Allowable deductions include salaries, office rent, advertising costs, depreciation, legal fees, etc.
• Tax Deductions: Special deductions such as medical expenses, charitable contributions, student loan interest (applies to individuals or small businesses).
• Tax Credits: Direct tax reductions, such as R&D tax credits, clean energy credits, and special employment credits.

Note: The formula is commonly applied to the C-corp model, but can be adjusted to better suit LLCs and S-Corps depending on the chosen business taxation method.

Businesses can absolutely pay US corporate income tax, without having to be physically present in the US to pay taxes. The IRS allows remote tax payment through the following methods:

• EFTPS (Electronic Federal Tax Payment System): Businesses log in online and pay taxes directly to the IRS.
• Authorized tax agent or accountant: Enterprises can authorize an agent to declare and pay on their behalf.
• International Payments: Some cases may be subject to IRS-accepted international bank payments.

GLA supports businesses in the US to fully fulfill their tax obligations, helping the tax payment process take place quickly and in compliance with IRS regulations.

Yes. US-resident businesses are generally required to report worldwide income. However, there are tax treaty exemptions and foreign tax credits.

Not required, but recommended. The US tax system is complex, multi-layered, with many forms and regulations that change frequently. Hiring a CPA (Certified Public Accountant) or tax agent helps:

• Submit on time, correct form
• Tax cost optimization
• Avoid the risk of penalties or audits from the IRS

GLA advises and supports businesses in choosing suitable tax solutions in the US, helping businesses pay taxes accurately, legally and most cost-effectively.

Not the same, these are two completely different types of taxes in nature, subject of application and calculation.

• Corporate Income Tax: Calculated on the net profit of the business after deducting eligible expenses
• Employment Taxes: Taxed on employee wages and contributed or deducted by the business

Japan is facing one of the biggest challenges of the 21st century: a rapidly aging population and a shrinking workforce. This is a national problem that Japanese businesses, government and society must find a way to solve.

In that context, AI has become a strategic solution to automate, optimize processes and reduce dependence on traditional human resources. This urgent need has opened up a large market for international technology companies.

Japan is globally renowned for its strengths in robotics, IoT, and smart manufacturing. Its tech ecosystem is increasingly integrating AI into areas such as manufacturing, finance, logistics, healthcare, and self-driving cars.

This is a favorable platform for international AI companies to cooperate, test and deploy products right in a highly applicable market.

The Japanese government has placed innovation and digital transformation at the heart of its economic development strategy. Many preferential policies, support funds and international cooperation programs have been implemented to attract foreign technology enterprises, especially in the field of AI. 

This helps international companies when opening branches or subsidiaries in Japan not only be welcomed but also have access to financial and research resources.

Japan is home to many of the world's leading corporations such as Panasonic, Rakuten, SoftBank, Toyota, Honda, etc. These are all business-to-business (B2B) customers with strong demand for AI applications in manufacturing, e-commerce, telecommunications, and financial services. 

For international AI companies, having a presence in Japan makes it easier to access global partners, expand business scale and affirm prestige in the Asian market.

anthropic, the famous American AI company with the Claude app, has officially announce plans opened its first Asian branch in Tokyo. The new office focuses on serving Japanese corporate customers and also cooperates with large corporations such as Panasonic and Rakuten Group to deploy products.

It can be said that this move not only helps Anthropic get closer to Japanese customers, but also affirms that Tokyo is becoming Anthropic's strategic "gateway" to penetrate deeper into the Asian market.

Before Anthropic, OpenAI – the name associated with ChatGPT – also took a similar step. In April 2024, OpenAI chose Tokyo as the location for its first office in Asia. Not only simply expanding its presence, OpenAI also revealed plans to “localize” the GPT model for Japanese – a move that shows its seriousness in this market.

Not staying out of the game, Microsoft – the American technology giant – also stepped up its investment with a $2,9 billion package in cloud computing infrastructure and GPUs in Japan. At the same time, the company also established the Microsoft Research Asia research center in Tokyo, focusing on pioneering areas such as embodied AI, social AI and neuroscience.

Microsoft's goal is clear: to bring AI from the lab into practice, accompanying Japanese businesses on their digital transformation journey.

Another bright spot is the SB OpenAI Japan joint venture, a collaboration between SoftBank and OpenAI. With an investment budget of up to billions of dollars per year, this joint venture not only provides AI solutions for the Japanese market, but also sends a strong message: Japan wants to play a central role in the Asian AI map.

Not only is Japan riding the international wave, it is also witnessing its own rise. Sakana AI, a startup founded by two former Google engineers in Tokyo, has reached a valuation of $1,5 billion just one year after its launch.

Sakana AI focuses on collective intelligence research, a different direction that demonstrates a very "Japanese" creative spirit: when AI is not just technology, but also a philosophy of connecting people.

Besides global corporations, Vietnamese enterprises are also asserting their position in the Japanese market:

• FPT Software: more than 20 years of presence, with thousands of employees and many AI projects for Japanese corporations.
• CMC Technology: open an office Third in Tokyo (2024), becoming a member of Keidanren – Japan’s leading economic organization.

Additionally, companies like NashTech, VSII are also entering the market with AI and digital transformation services.

Japan is one of the countries investing heavily in AI with many application areas: healthcare, automated manufacturing, finance, logistics, retail. The Japanese government and businesses are willing to spend large budgets to deploy AI solutions, opening up abundant cooperation opportunities for startups and international companies.

Big names like Sony, SoftBank, Rakuten, and Panasonic are always looking for technology partners to increase their competitiveness. New businesses can take advantage of this ecosystem to collaborate on research, product development, or expand distribution channels.

The Japanese government is promoting Digital Transformation (DX) and Society 5.0, with AI as the focus. Preferential policies on tax, research funds, and support for international startups help foreign businesses reduce risks and accelerate development.

Owning an office in Tokyo or Osaka – the two largest economic and technological centers in Japan – helps businesses enhance their reputation in the eyes of international partners, while easily attracting high-quality human resources in the technology industry.

A branch is a direct extension of a parent company overseas. Businesses can use the branch to conduct business, sign contracts, and provide AI services right in Japan.

• Advantages: Quick establishment procedures, lower operating costs compared to subsidiaries.
• Limitations: The parent company is directly legally and financially responsible for all activities of the branch.

A subsidiary is an independent legal entity, usually established as a Kabushiki Kaisha (KK) or Godo Kaisha (GK) in Japan. This is the form chosen by many large corporations in the AI ​​field for long-term development.

• Advantages: Independent legal entity, increased reputation with Japanese customers, easy to sign large contracts.
• Disadvantages: Requires charter capital, more complicated establishment and maintenance procedures.

Representative offices are suitable for new businesses exploring the market. These offices are not allowed to conduct revenue-generating business activities but only focus on research, surveys, marketing or communications.

• Advantages: Easy to set up, low cost.
• Restriction: No direct revenue generation in Japan.

This is a form of cooperation with a Japanese partner to establish a joint venture company. This model is suitable for AI businesses that want to take advantage of the resources, available customers, and local knowledge of the Japanese partner.

• Advantages: Cost savings, risk reduction, easy access to Japanese customer network.
• Limitations: Clear agreement on equity ratio, control rights and development strategy is required.

Yes. Japan allows foreign investors to own 100% of the company's capital. You can choose to establish Kabushiki Kaisha (KK) or Godo Kaisha (GK) without having to have Japanese shareholders or members.

AI companies often choose Kabushiki Kaisha (KK) because this type is highly regarded for its reputation, easy fundraising, and cooperation with large corporations. If you want simpler procedures and lower costs, Godo Kaisha (GK) is also a suitable choice.

Yes. The Japanese government and local governments such as Tokyo and Osaka often have programs to support AI and high-tech startups through:

• Tax breaks and financial assistance.
• Connect with venture capital funds and R&D centers.
• Business Manager Visa for foreign founders.

Contact GLA for advice and support on policies to support your business when establishing a company in Japan. 

Not required. Foreign companies can open branches or subsidiaries in Japan without a local partner. However, having a Japanese partner will help facilitate access to the local market, customers, and business networks.

Google Play Console is an application management platform provided by Google that helps game and application developers publish, track and optimize their products on the Google Play Store. This is an important tool that helps businesses and individuals control the entire application lifecycle, from publishing, updating, managing users to tracking revenue performance.

Google Play Console is not only a tool to support application publishing but also helps businesses optimize products, reach customers and effectively increase revenue. Below are 5 important reasons why game and app businesses should register for a Google Play Console account:

• Build high quality apps and games: Google Play Console provides tools to help businesses improve the quality of their apps, from content, user experience to technical performance, ensuring products run smoothly and meet the highest standards.
• Publish secure and professional applications: Application testing, validation, and deployment tools help businesses release products with confidence, minimize the risk of technical and security errors, and optimize global distribution processes.
• Expand your user base and optimize growth: With in-depth analytics tools and optimized reports, businesses can understand user behavior and market trends to build appropriate growth strategies, helping to expand their reach on Google Play.
• Make money easily from apps: Google Play supports multiple monetization models such as paid apps, in-app purchases, and subscriptions, helping businesses generate stable revenue and maximize revenue.
• Increase user engagement and retention: Engagement tools, user behavior analytics, and customer retention strategies help businesses build loyal communities, improve app retention rates, and increase user lifetime value (LTV).