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Tourism business in Japan: Opportunities, requirements, and company formation procedures.

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In 2025, Japan is expected to welcome 42,68 million international tourists, nearing its target of 60 million tourists and 15 trillion yen in tourism revenue by 2030, according to statistics from the Japan Tourism Agency.

This strong growth is opening up many opportunities for foreign businesses to participate in the promising tourism market.

tourism development potential in Japan

Number of tourists visiting Japan from 2017-2026

However, to operate a tourism business legally in Japan, a company not only needs to establish a legally compliant company but also must meet requirements for travel agency licenses, professional management personnel, and operational regulations under Japanese law.

In this article, GLA experts will provide comprehensive information on:

  • The potential for tourism business in Japan.
  • Conditions to be met, required travel permits, staffing requirements.
  • Procedures for company formation and the process for obtaining operating licenses.

This allows businesses to clearly understand the implementation roadmap, mitigate legal risks, and build a sustainable business foundation in the Japanese market.

1. Why should you do business in tourism in Japan?

Japan is currently one of the fastest-growing tourism markets in the world. Following the post-pandemic recovery, the number of international visitors has continuously set new records, leading to a huge demand for travel services, experiential tours, transportation, and visitor support.

Besides market demand, the Japanese government is also implementing various policies to develop the tourism industry into one of the drivers of economic growth. This is considered a favorable time for businesses to consider establishing a travel company in Japan and expanding their operations in this market.

Japan welcomes its highest number of international visitors ever.

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.

2. Can foreigners establish travel agencies in Japan?

Foreigners can absolutely establish and own travel companies in Japan.

Japanese law does not restrict the nationality of business owners. Foreign investors can own 100% of the registered capital when establishing a Japanese company following the Kabushiki Kaisha (KK) or Godo Kaisha (GK) model.

However, establishing a company does not automatically mean being allowed to directly operate a business in Japan. For a company to operate legally, investors need to meet three sets of conditions simultaneously:

  • Establish a legal entity in accordance with Japanese regulations.
  • Register for a travel agency business license if you provide tourism services.
  • You have the appropriate residency status if you directly manage a business in Japan.

In other words, the biggest barrier is not the investor's nationality, but rather meeting legal, licensing, and visa requirements.

2.1 Can Vietnamese citizens own 100% of a travel company in Japan?

According to current regulations, foreign investors, including Vietnamese citizens, are permitted to own the entire capital of businesses established in Japan. For the travel business sector, the regulatory authority does not base its assessment on the owner's nationality but focuses on evaluating their ability to meet licensing requirements, such as:

  • The financial capacity of the business.
  • Office Practical activities in Japan.
  • The travel operations manager meets the professional qualifications.
  • The application for a business license must comply with regulations.

If all the above requirements are met, Vietnamese investors can absolutely establish and own a travel company in Japan.

2.2 What is the difference between company ownership and business management rights?

This is a common misconception among investors: A company may own a business in Japan, but it doesn't necessarily have direct control over that business.

If investors wish to live in Japan and directly manage their business operations, they need a Business Manager Visa or other appropriate residency status as stipulated by the Japan Immigration Services Agency. To obtain this type of visa, businesses need to demonstrate several factors, such as:

  • There is a viable business plan.
  • It has an independent business location.
  • Meet the investment capital requirements as stipulated.
  • Proof that the business is actually operating.

Applying for a Business Manager Visa and applying for a Travel Agency Business License are two independent procedures, but both are important requirements if a business wants to operate a travel agency long-term in Japan.

Note: Regulations regarding the Business Manager Visa may be subject to change from time to time. Businesses should stay updated on the latest regulations or consult with a visa advisor before preparing their application.

3. Do I need a visa to set up a travel agency in Japan?

Not every case requires a visa. open a company in JapanHowever, if a foreign investor wishes to live and operate a business directly in Japan, the most commonly used visa is the Business Manager Visa. This visa allows foreigners to legally reside in Japan to manage and operate a business they establish.

From October 16, 2025, Japan has implemented several significant changes to the requirements for granting Business Manager visas. Businesses should take note of these requirements when planning to establish a travel company in Japan.

Below is a summary table of the requirements for a Business Manager Visa in Japan to help businesses understand the important changes. Visa and investment experts at GLA have compiled this table based on the regulations updated on October 16, 2025:

Condition Update required Note for investors
Investment capital or total assets put into business The minimum amount is 30 million yen (up from 5 million yen previously). This is one of the important requirements for demonstrating a company's financial capacity.
Personnel We must hire at least one full-time employee. Employees must be Japanese citizens or holders of long-term residency status (e.g., permanent residents or settled residents).
True love story Visa applicants or full-time employees must have a B2 level (equivalent to JLPT N2 or higher). This condition aims to ensure effective management and communication within the Japanese business environment.
Educational level or experience Must possess a Master's or Doctoral degree, relevant professional qualification, or a minimum of 03 years of management experience. Investors need to prepare documentation proving their education or experience as required.
Business plan A business plan that has been verified by an expert is required. The expert confirmed could be a consultant for small and medium-sized enterprises, a certified public accountant (CPA), or a licensed tax accountant in Japan.
Business location There must be a separate office, appropriate to the scale of operations. In principle, do not use a home or virtual office as a business headquarters.
Transitional provisions Individuals holding a Business Manager visa prior to October 16, 2025, will be subject to the old regulations when renewing their visa until October 16, 2028. Transitional provisions apply only to renewals, not to new applications.

Note: The Business Manager Visa is a requirement for residency and business operation rights, not a travel agency license. After obtaining the visa and establishing a company, the business must still apply for a travel agency license if it provides tourism services as regulated by Japanese law.

For foreign entrepreneurs who are just starting to build a business in Japan but have not yet fully met the requirements to apply... Business Manager VisaBusinesses can consider this program. Startup Visa.

The Startup Visa is designed to support foreign founders in the preparatory phase of establishing and operating a business in Japan. The program allows entrepreneurs more time to research the market, refine their business plan, prepare facilities, recruit staff, and complete necessary procedures before transitioning to the Business Manager Visa.

4. Categories of travel agency business registration in Japan

According to the Japanese Travel Business Law (旅行業法)Businesses providing paid travel services are required to register and obtain a license from the competent authority before commencing operations. Depending on the business model and scope of services provided, businesses will be classified into different licensing categories.

Basically, the travel agency licensing system in Japan is divided into: two main groups:

  • Travel business (旅行業者 / Travel Business): These are businesses that directly design, organize, and sell tour programs to customers. Depending on their scope of operation, this group is divided into four license categories: Category 1 Travel, Category 2 Travel, Category 3 Travel, and Regional Travel Business.
  • Travel Agent (旅行業者代理業 / Travel Agent): This is a business that does not directly design or organize tours, but operates as an agent, selling tourism products on behalf of travel companies under agency contracts and earning commissions as agreed upon.

Each type of license will have differences. Business scope, licensing conditions, financial and personnel requirements, and tour organizing rights.Choosing the right type of license from the outset will help businesses build a suitable business model, optimize investment costs, and ensure compliance with Japanese law.

Registration categories for travel companies in Japan

Registration categories for travel companies in Japan (Source: mlit.go.jp)

To help businesses easily visualize and choose the appropriate type of license, GLA's investment consulting team has compiled the following comparison table based on the current regulations of the Japan Tourism Agency.

Registration category Licensing authority Permitted operating area Deposit Standard asset
1rd place Tourism Department All business operations, domestic and international, without geographical limitations. 70 million yen 30 million yen
2rd place Governor All-inclusive domestic tours nationwide; customized tours and arrangements both domestically and internationally. 11 million yen 7 million yen
3rd place Governor Domestic package tours are limited to the surrounding area; customized tours are not limited to the region. 3 million yen 3 million yen
Area restrictions Governor All operations are conducted within the vicinity of the office. 150 yen 1 million yen
Travel agency Governor Authorization services from other travel companies. Not required Not required
Travel agency limits to tourist areas. Minister of MLIT acknowledges Authorized service, limited to the tourist area, only for guests staying at the resort. Not required Not required

1rd class travel (第1種旅行業)

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.

5. Four main requirements for establishing a travel company in Japan

To establish a Japanese company engaged in tourism business, regardless of whether it is a Class 1, 2, or 3 company, limited to a specific region or a travel agency, the business must simultaneously meet four main sets of conditions: legal entity and business purpose conditions, financial conditions, personnel conditions, and eligibility conditions.

Conditions regarding legal entity and business purpose

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.

6. The process of establishing a travel company in Japan

To establish a travel company in Japan, businesses not only need to register as a legal entity but also must meet specific requirements for the travel industry before being granted an operating license. Below is a six-step process that investors need to follow.

Step 1. Determine the appropriate business model and tourism license category.

Before establishing a business, investors need to clearly define the intended scope of operations, such as organizing package tours, operating domestic tours, international tours, acting as a travel agency, etc.

Defining the business model from the outset helps businesses make the right choice. travel license category According to the regulations of the Japanese Travel Business Law (Tier 1, Tier 2, Tier 3, regional travel license, or travel agency license). This also serves as the basis for calculating the standard asset level, deposit amount, and personnel requirements that must be met when applying for a license.

After defining the scope of business, the enterprise will make a selection. Suitable legal entity types in JapanThe two most common types in Japan include:

  • Kabushiki Kaisha (KK - 株式会社): Equivalent to a joint-stock company, it boasts a high level of credibility and is often positively evaluated by banks, hotels, travel partners, or government agencies in Japan. This is a suitable option for businesses aiming for long-term growth or international travel operations.
  • Godo Kaisha (GK - 合同会社): Equivalent to a limited liability company, it has simpler establishment procedures, lower costs, and a more flexible management structure. This model is suitable for startups or small-scale companies.

For foreign investors intending to apply Business Manager VisaFrom October 2025 onwards, businesses must meet the following requirements: 30 million yen capital contribution According to visa regulations, this is a separate condition for visa application and does not replace the standard asset requirement when applying for a travel agency business license.

GLA assists businesses in analyzing their business model, selecting the appropriate legal entity type, scope of travel operations, and licensing direction from the outset, helping to minimize the risk of document changes or additional costs during implementation in Japan.

Step 2: Draft and notarize the company's articles of incorporation.

After selecting the type of business entity, the investor proceeds to draft the proposal. Company Bylaws (定款)This is an important document that specifies the basic contents of a business such as the company name, registered address, charter capital, management structure, legal representative, and scope of business operations.

For businesses operating in the travel industry, business purpose (事業目的) The regulations should clearly state the relevant content. "旅行業" or "旅行業法に基づく旅行業"If this information is not added from the outset, the business will have to go through the business registration amendment procedure later, resulting in additional time and costs.

For Kabushiki Kaisha (KK)The charter must be notarized at Notary Office (公証役場) before submitting the registration application. Meanwhile, Godo Kaisha (GK) Notarizing the articles of incorporation is not mandatory.

GLA advises businesses on preparing company charters that align with their tourism business orientation in Japan, ensuring that the content regarding business lines, business objectives, and legal documents meet the requirements for company registration and subsequent travel agency license applications.

Step 3: Register the official business address.

One of the mandatory requirements for establishing a travel company in Japan is that the business must have a physical office. The office must be a location capable of receiving clients, storing records, and facilitating inspections and supervision by regulatory authorities.

Depending on their size and budget, businesses can choose from:

  • Serviced offices are fully equipped with reception, meeting rooms, and other amenities.
  • Shared offices have their own registered business address.
  • A traditional office is ideal if the business plans for long-term expansion.

Besides rental costs, office location is also a factor to consider. Areas near major train stations such as Shinjuku, Shibuya, or Tokyo Station often help businesses build credibility with clients and partners, while also facilitating business operations.

GLA assists businesses in selecting suitable office locations in Japan, advises on office solutions that meet the legal requirements of the tourism industry, and helps prepare the necessary documents related to the business location.

Step 4: Register the legal entity at the Department of Legal Affairs.

Businesses submit their registration applications to the Japanese Legal Affairs Bureau (法務局) where their headquarters are located.

Typically, after about 1–2 weeks, if the application is valid, the business will be granted:

  • Certificate of legal entity registration.
  • Business registration number.
  • Copy of the legal entity registration book (登記簿謄本).

These are the required documents for subsequent procedures such as opening a bank account and applying for a tourism business license in Japan.

GLA accompanies businesses throughout the entire process of registering a company in Japan, from preparing documents and verifying their validity to assisting with completing procedures with Japanese authorities.

Step 5: Open a corporate bank account

After a company is established, it needs to open a bank account to facilitate transactions and financial management.

For businesses with foreign investment, this is often one of the most time-consuming procedures due to the rather strict due diligence processes of Japanese banks.

Typically, banks will require businesses to provide documents such as:

  • Business registration certificate;
  • Company charter;
  • Office lease agreement;
  • Documents proving capital contribution;
  • Business plan;
  • Information about the legal representative.

In addition to reviewing legal documents, many banks also assess the feasibility of the business model and the company's relationship with the Japanese market before deciding to open an account.

GLA assists businesses in preparing documents for opening bank accounts in Japan, advises on selecting suitable banking solutions, and supports them throughout the process with banks to increase the chances of approval.

Step 6: Appoint a Travel Operations Manager

According to Japan's Travel Agency Law, each travel agency must have at least one full-time Travel Agency Operations Manager (旅行業務取扱管理者).

This person is responsible for overseeing all of the company's travel operations and ensuring that the services provided comply with all legal regulations.

Depending on the scope of business, enterprises need to assign personnel with the appropriate certifications:

  • Managing domestic travel operations for businesses that only operate tours within Japan;
  • Comprehensive travel management services for businesses organizing both domestic and international tours.

If a business has 10 or more employees, Japanese law also requires the addition of a Travel Operations Manager at a specified ratio to ensure supervision of business operations.

Step 7: Submit the application for a tourism business license.

After fulfilling all the requirements regarding legal entity, finances, business location, and personnel, the enterprise proceeds to submit an application for a tourism business license.

In addition to basic documents such as the business registration certificate, company charter, and financial statements, regulatory authorities also consider many other factors, including:

  • The company's financial capacity
  • Feasibility of the business plan
  • Tour organization and customer service process
  • Risk management and protection plan for tourists.

All documents must be prepared in Japanese and comply with the forms of the competent authority. The review process usually takes about 2–3 months, depending on the locality and the type of business license being applied for.

Travel agency business licenses, once issued, are valid for 5 years, after which businesses must renew them if they wish to continue operating.

Step 8: Complete the deposit/membership within 14 days and receive your official license.

After the application is approved, the business will receive a license notification. Within 14 days of receiving the notification, the business must fulfill one of the following two obligations:

  • Pay the business security deposit (営業保証金) at the Legal Affairs Bureau; or
  • Join a legally recognized travel agency association (such as JATA or ANTA) and pay the required security deposit (弁済業務保証金分担金).

Upon fulfilling this obligation, the business will be granted a Travel Business License and will officially be eligible to sign contracts, organize tours, promote and provide tourism services within the scope of the granted license.

During operation, businesses need to maintain full financial and personnel requirements and comply with the Travel Business Law to ensure the license remains valid and avoid penalties from regulatory authorities.

GLA accompanies businesses through the final stages of fulfilling requirements after approval, including advising on deposit obligations and supporting businesses in preparing to operate tourism activities in Japan.

7. Mandatory procedures and registrations after company establishment in Japan

Establishing a company in Japan does not mean that the business can immediately begin operations. After completing the legal registration with the Japanese Legal Affairs Bureau (法務局), the business still needs to complete many mandatory declaration procedures with regulatory agencies such as the tax authorities, social security agencies, and labor agencies.

For travel companies in Japan, completing all post-establishment procedures is crucial for the business to operate legally, recruit personnel, fulfill tax obligations, and meet the requirements for travel agency licenses.

Below is a summary of 9 important procedures that businesses need to complete after establishing a company in Japan. Tax and legal experts at GLA have compiled this table based on current regulations from the Japanese tax and labor authorities:

Procedure name Receiving agency Deadline for payment Required / Optional Purpose
Notification of establishment of a legal entity Regional Tax Department 2 months from the date of registration Obligatory Register to pay national corporate tax (法人税), consumption tax, and withholding tax.
Notification form for opening a payroll office. Regional Tax Department  One month from the date salary payments begin (including only the director's salary). Obligatory This notice indicates that the company is subject to withholding tax on income when paying salaries/remuneration.
Application for green form tax return Regional Tax Department  Before the date immediately preceding the earlier of which of: (a) three months since the date of incorporation, or (b) the end of the first accounting period Optional Enjoy tax benefits: carry-forward losses to subsequent years, accelerated asset depreciation, reduced accounting documentation.
Application for notification of establishment/setup of a legal entity's office Provincial/City Tax Department where the office is located  15 days from the start of business (for example, in Tokyo; other prefectures may have different regulations) Obligatory Register to pay provincial business tax (法人事業税) and the portion of legal entity residence tax collected by the prefecture (法人都道府県民税).
Provincial and city-level tax notices People's Committee of the city/district where the headquarters are located  Depending on the local regulations (usually 15–30 days), the 23 inner districts of Tokyo do not require separate submission to the district. Mandatory (except for 23 Tokyo prefectures) Register to pay the legal entity residence tax collected by the city/district (法人市町村民税)
Register for labor insurance Department of Labor 10 days (insurance relationship establishment application) + 50 days (provisional premium declaration application), calculated from the date of hiring the first employee. It is only mandatory when there is a job opening. Participating in workers' accident insurance (労災保険) protects the rights of workers in case of occupational accidents or diseases.
Submit labor regulations Department of Labor  There is no fixed deadline, but the tax must be paid "without delay" (遅滞なく) as soon as the company reaches 10 or more permanent employees. It is only mandatory if the company has 10 or more permanent employees. Regulations on working conditions, hours, wages, and labor discipline; accompanied by written opinions from employee representatives.
Register for health insurance and pension. Social Insurance Agency  5 days from the date the obligation arises (usually the date of establishment) Mandatory (even if the company has only one director and no employees) Enroll managers/employees in health insurance (健康保険) and welfare pension insurance (厚生年金保険).
Register for employment insurance. Employment Agency 10 days (application for establishment) + before the 10th of the following month (application for confirmation of participant eligibility) It is only mandatory when there is a job opening. Participating in unemployment insurance (雇用保険) ensures workers are entitled to unemployment benefits.

8. Common difficulties foreigners encounter when setting up a travel company.

Legally, foreigners have the right to establish travel companies in Japan and apply for travel agency licenses similar to Japanese citizens, provided they meet all the required conditions.

However, in reality, this process is often more complicated for foreign investors due to the need to overcome numerous barriers related to visas, language, finance, and the business environment. These are also the reasons why the time required to prepare documents and get the business up and running is longer than initially planned.

Below is an overview to help businesses quickly grasp the 5 most common difficulties before delving into the details of each issue. Investment consultants at GLA have compiled this table based on their practical experience assisting businesses in establishing travel companies in Japan:

Khó khăn The main cause
Business and Management Visa Requirements Are Becoming Stricter Minimum capital requirement increases from 5 million to 30 million yen (effective October 16, 2025)
It is difficult to find certified Travel Operations Managers. According to Japanese regulations, every travel agency must appoint at least one Travel Operations Manager with a certification appropriate to its scope of operations.
Difficult to meet financial capacity requirements. Standard assets must be represented using standard Japanese accounting.
Opening a bank account is not easy. Banks conduct thorough due diligence on foreign-owned enterprises.
It's difficult to find an office that meets the requirements. Landlords often require a guarantor who is a Japanese citizen.

The requirements for applying for a Business/Management Visa are becoming increasingly stringent.

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.

9. How does GLA assist in establishing a travel company in Japan?

Establishing a travel company in Japan involves more than just business registration; it also requires businesses to simultaneously meet numerous requirements regarding travel licenses, personnel, finances, business location, and regulations related to foreign investors.

For businesses without prior experience working with the Japanese legal system, handling the procedures themselves can be time-consuming due to the need to prepare documents in Japanese, work with various agencies, and address any issues that arise during the due diligence process.

With experience in supporting businesses to invest and expand their operations in international markets, GLA accompanies clients throughout the entire process of company establishment and obtaining travel agency business licenses in Japan.

  • Consulting on business model selection and the type of travel license that suits your business plan.
  • Establishing a legal entity in JapanThis includes preparing documents, drafting company bylaws, and carrying out registration procedures at the Department of Legal Affairs.
  • Consulting on the conditions for granting tourism business licenses.This includes requirements for capital, standard assets, deposits, and personnel for each license category.
  • Assistance in preparing documents for tourism business license applications.Review for completeness and compliance with regulations of the governing body.
  • Consulting services for opening a business bank account.Registering the office address and completing the necessary procedures will allow the business to start operating as soon as possible.
  • Tax and accounting consulting and renewing registration periodically helps businesses operate stably and comply with regulations.
  • Collaboration in working with government agencies, providing support in explaining and supplementing documents when requested, and monitoring the processing progress until the business is granted a license.

10. Frequently Asked Questions about Doing Business in Tourism in Japan

1. Can Vietnamese citizens establish travel agencies in Japan?

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.

Icon gla element Highlights
  • Choosing the right travel permit category from the start is the most important decision: the 5 registration categories (category 1, 2, 3, regionally restricted, travel agency) differ completely in terms of business scope, minimum asset requirements (1–30 million yen), and deposit amount (from 150 to 70 million yen), so choosing the wrong category will require redoing the entire application.
  • Opening a bank account and finding an office that meets licensing requirements often takes longer than expected due to the strict due diligence process from banks and landlords in Japan.
  • The biggest barrier for foreigners comes from personnel and visas, not capital: it is mandatory to have someone with a Travel Management certificate, and from October 16, 2025, the Business-Management visa has been significantly tightened (minimum capital increased to 30 million yen, full-time employees required, N2 level Japanese required).
  • Don't stop after obtaining a travel permit: businesses still have to complete a series of mandatory procedures with the Tax Department, Social Insurance agency, and Department of Labor (some within just 5–15 days). Missing any of these could result in lost tax benefits or penalties right from the start of operations.

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