Opening an agency in Japan in 2026: Requirements, permits, and costs.

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.