when the set up company in japann, the factor that many people are interested in is choosing the type of business that suits the needs and capabilities of the owner. In order for the business to run smoothly in the future, the owner needs to clearly understand the characteristics, advantages and disadvantages of each type.
List of selected articles by
Japanese
Godo Kaisha (GK) is a type of business entity that is often chosen by foreign investors when set up company in japan thanks to low costs, simple procedures, and a flexible management structure.

The number of newly established limited liability companies in Japan is projected to reach 44.991 by 2025. (Source: Tokyo Shoko Research)
According to Tokyo Shoko Research, by 2025 Japan will have 44.991 newly established companies under the GK model, representing a 6,8% increase and accounting for 28,6% of all new legal entities – the highest level ever. Statistics show that GKs continue to grow steadily and are becoming the main driving force behind the increase in new businesses in Japan. Even foreign corporations like Apple Japan and Amazon Japan are operating under this model.
However, many businesses still wonder whether GK is suitable for their business model, whether they should choose GK or Kabushiki Kaisha (KK), and how this choice will affect their Business Manager Visa, opening a bank account, or ability to collaborate with partners.
In this article, GLA experts will help you understand what Godo Kaisha (GK) is, its advantages and disadvantages, the establishment process, and compare GK and KK to choose the model that best suits your business goals in Japan.
1. What is Godo Kaisha?
Godo Kaisha (GK) (合同会社) is a limited liability company in Japan, established according to Japanese Companies Act.
This business model has a simple management structure, low setup costs, and is favored by many small businesses, startups, and established companies. Establishing an agency company in Japan. Choices to make when starting a business.
In essence, GK shares many similarities with the Limited Liability Company (LLC) model. In the US, contributing members are only liable to the extent of their capital contribution to the company, which helps limit the risk to personal assets during business operations.
Currently, Godo Kaisha is widely used in many fields such as:
- Restaurants, cafes, and F&B models.
- Trade and import/export.
- Information technology (IT).
- E-commerce.
- Travel services.
- Consulting services for small and medium-sized enterprises.
Thanks to its simple establishment process and reasonable costs, GK is often a suitable choice for businesses looking to quickly enter the Japanese market before scaling up operations.
Major brands are operating under the GK model in Japan.
A common misconception is that GK (Gross Market) is only suitable for small businesses or those lacking the credibility to deal with large partners. In reality, many leading global corporations have proactively chosen GK as their legal entity structure in Japan.
- Apple Japan合同会社 (Technology)
- Amazon Japan合同会社 (E-commerce)
- Google合同会社 (Technology)
- Cisco Systems合同会社 (Network & Technology)
- Caterpillar Japan合同会社 (Industrial machinery)
- P&G Max Factor合同会社 (Consumer goods)
- Universal Music合同会社 (Entertainment)
- Warner Bros. Japan合同会社 (Media)

Apple Japan合同会社 (Image: ja.wikipedia.org)

Amazon Japan合同会社 (Image: ja.wikipedia.org)

Google合同会社 (Image: ja.wikipedia.org)

P&G Max Factor合同会社 (Image: ja.wikipedia.org)
The presence of corporations like Apple, Amazon, and Google in the form of GK (General Contracting Companies) has gradually changed how the Japanese market views this type of entity. According to Tokyo Shoko Research, by 2025 Japan will have 44.991 newly established GK companies, a 6,8% increase and accounting for 28,6% of all new legal entities—the highest level ever, indicating a growing acceptance within the Japanese business community.
However, each business has its own starting point and goals, so the choices of large corporations are only for reference. Whether GK is truly suitable depends on the specific situation of each business.
2. Key legal points regarding Godo Kaisha that businesses need to remember.
Godo Kaisha (GK) is a type of company with a simple legal structure but is still an independent legal entity under Japanese Corporate Law. Before choosing to establish a GK, you should understand the following important regulations to assess its suitability for your business model.
Below is a summary to help businesses quickly understand the core legal regulations of Godo Kaisha before making a decision. Japanese company typesGLA experts have compiled the following table and important information:
| Write comment here... | Godo Kaisha (GK) |
| Legal status | An independent legal entity, authorized to sign contracts and conduct business activities. |
| Founded time | Approximately 7–10 business days after submitting all required documents. |
| Authorized capital | No minimum level is stipulated by law. |
| Representative | Permanent residency in Japan is not required. |
| Member responsibilities | Limited within the scope of capital contribution. |
| Company charter | There can be flexible regulations regarding governance and profit distribution. |
Godo Kaisha has independent legal status.
After receiving its Business Registration Certificate from the Legal Affairs Bureau of Japan, GK officially became an independent legal entity with the following rights:
- 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.
The establishment time was faster than that of Kabushiki Kaisha (KK).
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.
No minimum registered capital requirement is specified.
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.
Having a resident director in Japan is not mandatory.
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.
Limited liability for contributing members
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.
The company's articles of incorporation are highly flexible, including the profit-sharing mechanism.
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.
3. When should you choose the GK business model when doing business in Japan?
Godo Kaisha (GK) is a suitable choice for many foreign businesses due to its low incorporation costs, simplified procedures, and flexible management structure.
However, GK is not the optimal choice for every business model. Before deciding to establish a company, you should consider your short-term and long-term growth goals.
Who is Godo Kaisha a good match for?
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.
Who shouldn't choose Godo Kaisha?
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.
Advice from GLA experts before choosing a goalkeeper:
Don't just look at the setup costs when deciding whether to choose GK or KK. Choosing the right business model not only saves you initial costs but also supports sustainable business growth in the years to come.
Before making a decision, you should answer the following questions for yourself:
- Is your business goal to operate a single store or to build a chain of restaurants?
- Do you have plans to raise capital in the future?
- Are your target customers and partners individuals, small and medium-sized enterprises, or large corporations?
- Do you prioritize minimizing initial costs or building your company's image from the outset?
- Does your business plan to expand in the next 3–5 years?
According to GLA experts, The majority of Vietnamese businesses making their first investment in Japan choose this option. GK To quickly enter the market at a reasonable cost.
However, if the business already has a strategy for future expansion, branding, or fundraising, establishing a new business is advisable. KK from the beginning This can help save time and minimize future conversion procedures. GLA will provide advice based on each business's business model, budget, and development goals to help you choose the most suitable type of business entity.
4. What are the main differences between GK and KK?
Godo Kaisha (GK) and Kabushiki Kaisha (KK) are both common types of limited liability companies in Japan. However, these two models differ in terms of establishment costs, management structure, fundraising capabilities, credibility, and development orientation. The choice between GK and KK should be based on the scale of your investment and your long-term business plan.
To help you consider and choose the right business type for your goals in Japan, GLA experts have compiled the core differences between GK and KK in the comparison table below:
| Criteria | Godo Kaisha (GK) | Kabushiki Kaisha (KK) |
| Cost of establishment | Lower | The price is higher due to the need for notarization of the Articles of Association and higher registration fees. |
| Founded time | Faster | It takes longer because there's an additional step of notarizing the Articles of Association. |
| Management structure | Simple, flexible | Strict, with clear management procedures. |
| Decision-making power | The direct contributing member makes the decision. | According to the company's shareholding ratio and governance structure. |
| Capital raising capacity | Limited access to loans from banks. | Easier to raise capital and attract investors. |
| Level of credibility | Suitable for small and medium-sized enterprises | Highly regarded by many partners, banks, and investors. |
| Development orientation | Stable business, small or medium scale | Suitable for businesses that have |
| Limit |
|
|
| Most suitable |
|
|
Here are some specific scenarios to help you decide whether to choose a GK or KK type company in Japan:
| Situation | Suitable type | Reason |
| Open your first restaurant, cafe, or shop in Japan. | GK | Low setup costs, simple procedures, suitable for starting a business quickly. |
| Small and medium-sized enterprises want to optimize operating costs. | GK | Flexible management structure, fewer internal procedures, and lower initial costs. |
| Startups or businesses looking to test the Japanese market with a limited budget. | GK | Suitable for testing the business model before scaling up investment. |
| Businesses need to establish a legal entity within a short period of time to commence operations. | GK | Since the company charter doesn't need to be notarized, the establishment process is usually faster than with a notarized copy. |
| The parent company overseas wants to establish a subsidiary in Japan to manage its business operations. | GK | Suitable for various subsidiary company models due to its simple structure, low management costs, and ease of operation. |
| Vietnamese businesses frequently work with large corporate clients or participate in bidding processes. | KK | Legal credibility and a professional governance model help build trust with partners and large organizations. |
| The business plans to build a chain of restaurants or open multiple branches. | KK | In line with long-term development strategy and business expansion. |
| The company plans to raise capital from investors or investment funds within the next 18–24 months. | KK | Having a clear shareholding structure facilitates fundraising and attracting investors. |
| Businesses aim to collaborate with banks, corporations, or financial institutions. | KK | A higher level of credibility makes it easier to negotiate and sign large-value contracts. |
| Businesses prioritize building a professional brand and image right from the start. | KK | This model is chosen by many large businesses in Japan, creating an advantage in terms of brand recognition and credibility. |
The comparison table and case studies above are for general guidance. The final decision should be based on a comprehensive assessment of the industry, ownership structure, financial plan, and specific development roadmap of each business. GLA is ready to provide detailed advice for each case; contact GLA's team of experts for support.
5. The Process of Establishing a Godo Kaisha: A Step-by-Step Guide
Establishing a Godo Kaisha is considerably simpler than establishing a Kabushiki Kaisha, but it still requires thorough preparation from the outset. Most delays or rejections stem from incomplete documentation, invalid company names, or failure to meet the technical requirements for business registration in Japan.
GLA summarizes below all the prerequisites and practical step-by-step procedures, including practical considerations that are often overlooked in standard guidance documents.
5.1 Prerequisites for establishing a GK in Japan
Godo Kaisha (GK) is a type of business with relatively simple establishment requirements compared to many other countries. Japanese law does not require businesses to meet a minimum registered capital requirement or have a representative who is a Japanese citizen.
However, for the company to be established and operate smoothly, you still need to meet some important conditions below:
However, for a company to be established and operate smoothly, it still needs to meet several important conditions. To help businesses thoroughly review the requirements before starting the process and avoid having to submit additional documents multiple times, GLA experts have compiled the prerequisites in the table below:
| Condition | Specific requirements |
| Contributing member | There must be at least one contributing member (individual or legal entity), not required to be a Japanese citizen or resident. |
| Head office address | Having a registered office address in Japan is necessary to carry out the incorporation procedures and receive notifications from government agencies. |
| Company charter | Prepare the Articles of Incorporation with complete information: company name, business lines, registered capital, contributing members, and management structure. |
| Authorized capital | Determine the appropriate capital level for the scale of your business. While the law doesn't specify a minimum amount, consider a level sufficient to build credibility with banks and partners, and to support your development plan. |
| Legal representative | There must be at least one representative to act on behalf of the business in conducting transactions and legal procedures. |
| Business seal | Prepare your official seal (if you will be using it) for transactions with banks, partners, and government agencies. |
| Business plan and company profile | Prepare to assist with the process of opening bank accounts, applying for specialized licenses, or carrying out post-establishment procedures. |
| Conditional business sectors | Meet any specific requirements, such as food service licenses, fire safety permits, or other specialized licenses. |
Note from GLA: Meeting legal requirements is only the first step in the incorporation process. GKTo ensure your business can quickly become operational, you should prepare all necessary documents, including bank account opening documents, business plan, and procedures related to taxes, labor, and social insurance, right from the company's establishment phase. This will save time and minimize potential problems during operation.
5.2 The process of establishing Godo Kaisha (GK) in Japan
Step 1: Identify the company's basic legal documents.
Before drafting any documents, businesses need to identify and agree upon all of the following foundational information:
- Company name (including the characters 合同会社)
- Head office address in Japan
- Business Purpose (事業目的): This needs to be listed specifically and completely, as it is the legal basis for the company to sign contracts and apply for business licenses later.
- List of founding members, their capital contribution ratios, and their roles.
- Representative Executive Officer
- Fiscal year (usually 12 months, with the business choosing its own start date)
- Authorized capital

Photo: Checking if the business name already exists. Japan Legal Entity Identification Number Portal
The business purpose (事業目的) needs to be carefully drafted from the outset. If the company wants to add business lines after registration, it must amend the Articles of Association and pay the registration fee for the additional changes.
Step 2: Draft the Articles of Incorporation (定款)
The Company Charter is GK's most important legal document, stipulating the entire organizational structure, rights, and obligations of its members.
- The GK regulations do not require notarization at a Japanese notary office, which is a fundamental difference compared to KK regulations, saving on notarization fees and stamp duty.
- The articles of incorporation must be drafted in Japanese. If the company does not have personnel fluent in Japanese, it should utilize the services of a Judicial Scrivener (司法書士) or a lawyer specializing in Japanese corporate law.
- Key provisions that need to be clearly stipulated in the Charter include: profit-sharing mechanism, voting mechanism, conditions for transferring capital contributions, and procedures for admitting new members.
The company charter is a document that is drafted once but has long-lasting effects. Any omissions in the charter can lead to legal risks or internal disputes later on, especially with multi-member structures. GLA recommends against using default charter templates and instead advises consulting legal counsel to customize it to the specific structure of each business.
Step 3: Register and have the company seal engraved (会社実印 / Corporate Seal)
The company seal (hanko/印鑑) plays a crucial legal role in Japan – equivalent to a representative's signature in the Western legal system.
- Businesses need to prepare an official round seal (代表者印) before submitting their registration application.
- The company seal must be custom-made with the company name and officially registered with the Legal Affairs Bureau (法務局).
- After registration, the business will receive Seal registration certificate (印鑑証明書) - Required documents for many subsequent procedures, including opening a bank account.
Step 4: Submit the registered capital.
The contributing members will transfer their committed capital to the designated bank account.
For foreign investors who do not yet have a company in Japan, the registered capital is usually transferred to the personal bank account of the representative or founding member who is legally residing in Japan before completing the business registration procedures.
After transferring the capital, the business needs to retain the following:
- Bank transfer confirmation slip.
- Bank statement.
- Documents proving the capital contribution.
These documents will be used in the company registration application.
Note: Japanese law currently does not specify a minimum registered capital requirement for Godo Kaisha. However, businesses should choose a capital level appropriate to their scale of operations to enhance their credibility with banks, partners, and regulatory authorities.
Step 5: Submit your application to the Legal Affairs Bureau (法務局).
This is the official step in establishing GK's legal entity.
The submitted documents include: The application for company formation, signed Articles of Association, documents confirming capital contribution, authorization letter from the representative, seal registration certificate, and other documents depending on the ownership structure (individual or foreign legal entity).
The Japanese Legal Affairs Bureau does not provide support services in English. All documents must be prepared in Japanese. Errors in the documents will lead to requests for additional information and significantly prolong processing time. GLA assists businesses in translating documents to ensure accuracy from the first submission.
Step 6: Receive the Business Registration Certificate (登記簿謄本)
After the Department of Legal Affairs completes the processing, the business receives:
- Certificate of Registered Matters (登記簿謄本 / Certificate of Registered Matters): Confirms that the legal entity GK officially exists. This is a mandatory document for most subsequent procedures.
- Seal Registration Card (印鑑カード / Seal Registration Card): Used to apply for a Seal Registration Certificate when necessary.
- Corporate Number (法人番号): A unique 13-digit identification code for a company within the Japanese government's administrative system.
Step 7: Open a corporate bank account
After Godo Kaisha (GK) receives its business registration certificate, the next step is to open a corporate bank account to support business operations. This is almost mandatory if you want to receive payments from customers, pay suppliers, pay employee salaries, or conduct other company financial transactions.
However, opening a corporate bank account is often one of the most difficult steps for foreign businesses in Japan. The fact that a company has already been established does not automatically mean the bank will approve the account.
Japanese banks typically conduct thorough reviews of new business profiles to prevent money laundering, financial fraud, and limit other illicit activities. shelf company There is no actual business activity.
For Godo Kaisha (GK), the approval process can sometimes be stricter than for Kabushiki Kaisha (KK). This is because GK has lower incorporation costs and simpler procedures, so banks will scrutinize the transparency and practical operational viability of the business more closely.
To increase your chances of successfully opening a bank account, you should prepare all the necessary documents proving that your business has a clear business plan and is operating in practice, including:
- The business plan, written in Japanese, clearly outlines the company's business model and development direction.
- Physical office address. Most banks prefer or require businesses to have their own office; using a virtual office may affect the approval process.
- Documents proving business operations, such as contracts, quotations, invoices, or customer transactions (if any).
- A reasonable level of registered capital is necessary to build trust during the appraisal process.
- A company website or profile helps banks better assess its industry and scale of operations.
Being fully prepared from the start will reduce the time spent on supplementing documents and increase the chances of bank approval.
Step 8: Register for tax, labor, and social insurance.
After completing the establishment procedures for Godo Kaisha (GK), the business needs to fulfill its registration obligations with government agencies before officially commencing operations. This is a crucial step to ensure the business fully complies with Japanese laws and regulations regarding taxation, labor, and social security.
Depending on your business operations, you will need to complete declaration procedures with the tax authorities, pension agencies, and labor agencies. Some procedures have quite short deadlines for filing, so delays or omissions can lead to risks such as administrative penalties, tax arrears, or affecting the renewal of your Business Manager Visa in the future.
One point that businesses need to pay particular attention to is:
- Social insurance (including health insurance and pension insurance) This is a mandatory obligation for all legal entities, even if the company has only one director and has not yet hired any employees.
- Bảo hiểm lao động This only arises when a business begins recruiting and employing workers in accordance with Japanese law.
GLA assists businesses in completing all post-establishment procedures, including tax registration, initial tax declaration, labor and social insurance registration, and provides regular accounting and tax services, helping businesses comply with regulations and operate stably from the very beginning.
6. How does GLA assist you in establishing Godo Kaisha Company in Japan?
Establishing Godo Kaisha in Japan is not simply a matter of completing a registration application. Language barriers, the complexity of the Japanese legal system, and constant legal changes, especially after the October 2025 reforms, require businesses to have partners with a deep understanding of the practical realities.
Global Links Asia, with its experience in advising and assisting with company formation in Japan, will accompany businesses throughout the entire process:
- We advise on selecting the appropriate legal entity type based on business objectives, ownership structure, and specific development roadmap.
- We provide full support throughout the GK establishment process: drafting the charter, preparing the necessary documents, handling the seal procedures, and submitting the application to the Department of Legal Affairs.
- We advise on the appropriate capital structure to align with the bank's objectives, commercial reputation, and Business Manager Visa requirements, if applicable.
- Connecting with and assisting in opening a corporate bank account in Japan is the most challenging step in practice for foreign businesses.
- Business Manager Visa consultation under the 2025–2026 regulations, including capital requirements, business plan requiring expert verification, and other requirements. physical office.
- Connecting with a network of experienced legal secretaries (司法書士), lawyers, and tax accountants (税理士) who have worked with foreign companies.
- We assist with post-establishment tax, labor, and social insurance registration, ensuring compliance within deadlines.
7. Frequently Asked Questions about Godo Kaisha in Japan
1. Is it mandatory to hire an accountant after establishing Godo Kaisha (GK)?
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.
2. How much does it cost to establish Godo Kaisha (GK) in Japan?
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.
3. Is it difficult to open a corporate bank account when establishing Godo Kaisha (GK)?
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.
4. Is it possible to switch from GK to KK later?
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.
- Godo Kaisha (GK) is a type of limited liability company in Japan, suitable for businesses that want to establish a legal entity quickly, optimize costs, and operate flexibly.
- GK has full legal capacity to enter into contracts, open bank accounts, recruit personnel, and conduct legitimate business activities in Japan.
- GK does not require a minimum registered capital amount as stipulated by law; however, businesses should choose a capital level that is appropriate for their business plan, ability to open a bank account, and visa application goals (if any).
- The choice between GK and KK should be based on the company's development strategy. GK is suitable for new or small and medium-sized businesses, while KK is generally a better choice if there are plans to raise capital or expand in the future.
- Establishing a GK (Gross Country) is just the beginning. Businesses still need to complete post-establishment procedures such as opening a bank account, registering for taxes and accounting, and complying with legal regulations to operate smoothly in Japan.
Opening a company in Japan to export handicraft products is the desire of many Vietnamese enterprises, especially when the Japanese market is famous for being strict but also full of potential. However, many enterprises are struggling with a series of questions:
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.

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.
Tourist spending continues to rise sharply.
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 Japanese government continues to prioritize the development of the tourism industry.
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.
A diverse range of international tourists reduces the risk of dependence on a single 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.
Experiential tourism and local tourism are becoming a trend.
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.
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 (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.
2rd class travel (第2種旅行業)
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.
3rd class travel (第3種旅行業)
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.
Limited area travel (地域限定旅行業)
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 agency (旅行業者代理業)/ Travel agent
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.
Travel agency limited to the tourist area (special format)
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.
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.
Financial requirements
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).
Personnel requirements: Appointment of a Travel Operations Manager
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.
Eligibility requirements: not subject to licensing refusal
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.
Other practical conditions that need to be prepared when starting a tourism business.
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.
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.
It is difficult to find certified Travel Operations Managers.
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.
Difficult to meet financial capacity requirements.
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.
Opening a business bank account is not easy.
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.
It is difficult to find offices that meet the licensing requirements.
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.
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.
2. Is it possible to use a virtual office to register a travel company?
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.
3. How much capital is needed to open a travel company in Japan?
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:
| Type of license | Minimum benchmark assets | Business deposit |
| Third-class travel | 30 triệu yên | 70 triệu yên |
| Third-class travel | 7 triệu yên | 11 triệu yên |
| Third-class travel | 3 triệu yên | 3 triệu yên |
| Regional Travel | 1 triệu yên | 150.000¥ |
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.
4. Is it mandatory to rent an office when opening a travel company in Japan?
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.
5. If I want to start a tourism business in Japan, do I need a travel operations manager?
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.
6. Should I start my own travel agency in Japan or use a support service?
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.
- 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.
By the end of 2025, total foreign direct investment in Japan is projected to reach 61,2 trillion yen, a 14,8% increase year-on-year and the highest level ever recorded. The Japanese government aims to raise this figure to 120 trillion yen by 2030, according to the plan. Data from the Ministry of Finance and the Bank of Japan.

This influx of capital and a series of investment-attracting policies are opening up many opportunities for foreign businesses. Among these, agency business models are particularly noteworthy, as they typically require less fixed capital and are easily scalable.
However, not every agency field is suitable to start in. To run a successful and legal business, companies need to choose the right, promising field. set up company in japan In accordance with the law, and meeting all licensing and operational requirements under Japanese law.
In this article, GLA experts will provide a comprehensive overview of:
- Top 5 promising agency business sectors in Japan for foreign companies.
- Analyzing market opportunities, popular business models, and advantages for Vietnamese businesses.
- Legal requirements to consider when establishing and operating an agency in Japan.
- These factors help businesses choose the right field and develop a market entry strategy.
Through this process, businesses can gain a clear understanding of the potential of each industry, identify suitable strategies, and prepare a solid foundation for long-term business expansion in Japan.
1. Why should you open an agency in Japan?
Japan is one of the potential markets for developing the agency model due to its large economic size, increasing demand for business services, and numerous policies encouraging foreign investment.
In particular, sectors such as marketing, information technology (IT), human resources, business consulting, and tourism are in high demand, opening up many opportunities for businesses looking to expand their operations in this market.
Here are some reasons why Japan is an attractive destination for establishing an agency.
The large scale of the economy creates a stable demand for agency services.
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.
The Japanese government encourages foreign businesses to invest.
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.
The demand for agency services has surged due to digital transformation and a shortage of skilled personnel.
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)
The tourism industry is growing, creating opportunities for service agencies.
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 many advantages when opening an agency in Japan.
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.
2. Top 5 most promising agency sectors when establishing a company in Japan
The five most promising agency sectors in Japan are tourism, IT, marketing, human resources, and business consulting. Each sector has different levels of potential, legal barriers, and starting capital. To help businesses quickly compare and choose a direction that suits their resources, GLA's business consultants have compiled the table below.
| Criteria | Travel & Tourism | IT / Software | Marketing & Treatment | Personnel | Business consulting |
| Specialized licenses are required. | Yes. Register for tourism business. | No | No | Yes. A paid Job Placement License or a Labor Dispatch License. | There is no general licensing requirement, but licensed professionals are needed to perform these services (administrative services, legal services, accounting, tax consulting). |
| Industry-specific minimum capital/assets | Basic assets + security deposit depending on the type of registration (the required amount increases progressively). | No specific requirements | No specific requirements | Net assets ≥ 5.000.000 JPY/office + cash ≥ 1.500.000 JPY | No specific requirements (unless there are personnel holding professional certifications who need to meet individual professional practice requirements). |
| Request for specialized personnel | Mandatory appointment of a Travel Operations Manager | Not mandatory (except for visa requirements for engineers) | Optional | Training is mandatory for job placement agents. | Collaboration with certified professionals (administrative clerks/lawyers/accountants/tax consultants) is necessary if expanding legal and financial services. |
| Best suited for | Travel agencies wishing to open branches should have experience in operating tours. | Software/outsourcing company, engineer looking to start a business. | Media agency and highly skilled freelancer looking to expand. | An experienced HR company, willing to invest long-term. | Consultant, former investment/legal professional looking to start a service business. |
| A distinct advantage for Vietnamese businesses. | Understanding the preferences of Vietnamese tourists and capitalizing on the growing trend of Vietnamese visitors to Japan. | Strengths include a skilled engineering workforce and experience in outsourcing to the Japanese market. | Bilingual services, connecting the Vietnamese and Japanese markets in both directions. | Vietnam Labor Network | Understanding the context, needs, and barriers faced by Vietnamese businesses when entering the Japanese market. |
2.1 Tourism and travel business in Japan
Tourism and travel is a highly promising field for agencies, but it requires a travel agency business license. This is the biggest difference compared to other agency sectors. Vietnam is a rapidly growing source market, opening up opportunities for businesses providing travel services and operating tours in Japan.
Market potential
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.
Popular business models
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.
Legal requirements for conducting tourism business in Japan.
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."
2.2 Opening an IT/Software Company in Japan
IT and software are sectors with the most pressing needs and low barriers to entry. This industry doesn't require specialized licenses; simply establishing a company is enough to launch a project. This presents a great opportunity for Vietnamese businesses, which possess a strong workforce of engineers and experience in software outsourcing for the Japanese market.
The potential of the IT/software market in Japan.
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.
Common business models when starting an IT company in Japan
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.
Legal requirements for opening an IT/software company in Japan.
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.
Why is IT/software the easiest industry to enter when opening an agency in Japan?
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.
2.3 Marketing, Advertising, and Digital Agency Business in Japan
Marketing and digital agencies are benefiting from the shift of advertising budgets to digital. The industry doesn't require specialized licenses, but is governed by two legal frameworks regarding advertising content. This presents an opportunity for Vietnamese agencies with the advantage of creative personnel and experience serving international clients.
In recent years, the Japanese advertising market has witnessed a clear shift from traditional media channels to digital platforms. As consumer behavior changes and users spend more time on the internet, social media, and online platforms, Japanese businesses are compelled to seek digital marketing partners capable of helping them reach customers more effectively.
This presents an opportunity for businesses looking to establish a Marketing Agency in Japan, especially Vietnamese agencies with advantages in creative personnel, multi-channel implementation capabilities, and experience serving international clients.
Market potential for Marketing and Digital Agencies in Japan
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.
Popular business models
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.
Legal requirements for opening a Marketing Agency in Japan
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.
Competitive advantages for Vietnamese agencies
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.
2.4 Business in human resources services (recruitment, labor dispatch) in Japan
Human resources services is the industry with the strictest legal requirements among the top 5, but the market demand is huge. Businesses wishing to engage in recruitment or labor dispatch must obtain specialized licenses; simply establishing a company is not sufficient. This presents a long-term opportunity for Vietnamese businesses with a network of candidates in Vietnam, and for human resources companies in Japan, it can become a long-term business opportunity if proper preparation is made from the outset.
The potential of the human resources services market in 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.
Popular human resource business models in Japan
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.
Legal requirements for opening a human resources company 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
Distinguishing between employment referral permits and labor dispatch permits.
Businesses need to clearly define their business model before implementation because these two activities require two completely different types of licenses.
| Type | Licenses need to be registered. | Characteristics |
| Job introduction (職業紹介) | Fee-based Job Placement Business License (有料職業紹介事業許可) | Workers sign contracts directly with the recruiting company. |
| Labor dispatch (労働者派遣) | Labor Dispatch Business License (労働者派遣事業許可) | Workers who sign contracts with an agency are assigned to work at another company. |
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.
2.5 Opening a Business Consulting Company in Japan
Business consulting is a promising industry thanks to the strong inflow of foreign capital into Japan. While it doesn't require a general license, it does have significant legal boundaries regarding proprietary practices. Business consulting agencies play a strategic partner role, supporting businesses from market research to operations in Japan.
Market potential for business consulting in Japan
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.
Common business models of Business Consulting Agencies 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.
Legal requirements for opening a business consulting company in Japan.
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.
3. General requirements for opening an agency in Japan
All foreign agencies in Japan need to meet certain fundamental requirements for business establishment and operation. These are general requirements applicable to most types of companies in Japan. After that, businesses must meet additional industry-specific requirements, such as travel agency licenses or personnel permits. Businesses should prepare thoroughly from the start to minimize legal risks when applying for visas, opening bank accounts, and operating in Japan.
3.1 Choosing the Right Business Type in Japan
When establishing a company in Japan, foreign businesses typically choose between two common business types: GK and KK.
- Kabushiki Kaisha (KK)(株式会社)The joint-stock company model offers high credibility with Japanese partners and is suitable for businesses planning to expand, raise capital, or collaborate with large corporations. It's also the most suitable option if the agency plans to apply for specialized licenses such as travel or employment agency licenses, as its high credibility facilitates a smoother approval process.
- Godo Kaisha (GK) (合同会社): Similar to a limited liability company (LLC), simpler establishment procedures, lower costs than a KK (Unknown Company), suitable for startups or small-scale agencies in their early stages (especially suitable for the IT and Marketing industries which have low barriers to entry).
3.2 Capital requirements and conditions for applying for a Business/Management Visa
For foreign business owners who wish to live and operate their companies directly in Japan, the business needs to meet the following requirements simultaneously:
- Requirements for establishing a business in Japan;
- Application requirements Business Manager Visa According to regulations of the Japan Immigration Bureau (ISA).
In addition to investment capital requirements, businesses also need to meet criteria related to:
- Independent business office
- Actual scale of operations
- Personnel structure
- A viable business plan
These are the fundamental conditions that apply to all types of agencies, regardless of whether the business operates in the fields of tourism, technology, marketing, human resources, or business consulting.
Note: In cases where a parent company overseas sends personnel to work at a subsidiary in Japan in a professional/technical position (not a managerial role), the company may consider applying for an Intra-company Transferee Visa.
Conversely, if personnel are seconded to directly manage a subsidiary company (for example, as a director/member of the board of directors), they must apply for a Business/Management Visa (経営・管理) and cannot use this type of visa. The two types of visas have completely different conditions and approval processes.

3.3 Preparing a legally compliant business office
One of the mandatory requirements when establishing a company in Japan is to have legal head office address (The location of the store) to register with the Japanese Legal Affairs Bureau. However, the choice of the type of Japanese office should be considered based on the business objectives and visa plan of the company.
Some common office models include:
- Traditional Office
- Serviced Office
- Coworking Space
- Virtual Office
In particular, businesses need to pay special attention to the following:
- If you're only setting up a company for regular business purposes, several flexible models might be worth considering.
- If you need to apply for a Business/Management Visa or a specific industry license, your office will need to meet stricter standards.
For example, a human resources agency needs a space that ensures privacy when interviewing candidates, or a travel agency may need to meet specific requirements according to travel industry regulations. Therefore, choosing an office space from the outset should be aligned with the company's long-term development plan.
3.4 Company Seal (Hanko)
The company seal still plays an important role in Japanese business culture. This is in accordance with the reform of commercial registration procedures by the Japanese Ministry of Justice. since 2021Businesses are no longer required to submit a company seal when registering online.
However, the official seal (代表印) is still commonly used in many important transactions such as signing contracts with partners, dealing with banks, carrying out administrative procedures, etc. Therefore, businesses should still prepare a seal system immediately after establishing a company in Japan.
3.5 Opening a business bank account in Japan
Opening a business bank account in Japan is one of the crucial but often overlooked steps when setting up a company in Japan.
In fact, Japanese banks often have quite strict due diligence processes for newly established companies, especially businesses such as:
- Represented by foreigners.
- No history of operation
- Revenue source or customer has not been proven.
The bank may request the following from the business:
- Company registration documents
- Business plan
- Information about planned activities
- Contract or proof of transaction
- Information about the physical office
The review process can take anywhere from a few weeks to several months, depending on the case.
To increase the chances of approval, businesses should prepare: complete legal documents, a clear business plan, a physical office address, and a transparent explanation of their business model. In particular, using a virtual office may make the bank account verification process more difficult.
3.6 Registering for tax and social insurance after company establishment
After completing the company registration at the Department of Legal Affairs, businesses need to carry out the following mandatory administrative procedures:
- Submit the application for the establishment of a legal entity (法人設立届出書) to the local tax office (税務署) that manages the area where the company's headquarters are located.
- Registering employees for social insurance, health insurance, and retirement insurance is mandatory as soon as you have permanent employees, especially important for industries with mandatory recruitment requirements such as Business/Management visas or employment referral permits.
- Register for labor insurance if your business employs workers.
In general, opening an agency in Japan is not simply a matter of registering a legal entity; it requires comprehensive preparation including: choosing the type of business entity, visa planning, office space, finances, banking, taxes, and legal requirements specific to each industry.
4. How does GLA support businesses in setting up agency companies in Japan?
Opening an agency in Japan offers many opportunities to access a large market with diverse service needs. However, each field, such as... tourism, IT, marketing, human resources, or business consulting They all have their own legal requirements and operating conditions.
Therefore, businesses need to prepare thoroughly right from the planning stage to ensure a smooth establishment and operation process.
With experience supporting businesses in expanding their operations in Japan, GLA provides a comprehensive company formation service, accompanying businesses from the preparation stage to the company's operation, specifically:
- Business model consulting and Types of businesses in Japan (KK or GK) suitable for investment objectives.
- Support set up company in japanThis includes preparing the necessary documents and carrying out the procedures for registering the legal entity.
- We provide legal advice for each agency sector, including those requiring licenses or specific business conditions.
- We assist with opening business bank accounts and handling post-establishment procedures such as tax, accounting, insurance, and labor matters.
- We provide support throughout the operational and expansion process, helping businesses comply with legal regulations and achieve sustainable growth in the Japanese market.
With a team deeply familiar with the business environment and legal regulations in Japan, GLA is committed to providing solutions tailored to each business's needs, optimizing implementation time, minimizing legal risks, and creating a solid foundation for long-term business operations.
5. Frequently Asked Questions about Running an Agency in Japan
1. How can I find my first customers/partners in the Japanese market?
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.
2. Is it mandatory to have a Japanese representative when opening an agency 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.
3. What is the average time it takes to register an agency 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.
4. Which agency sector makes it easiest to obtain a Business Manager Visa?
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.
5. How much capital is needed to start a job placement service business 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.
- Japan is a potential market for the agency model, thanks to foreign investment reaching 61,2 trillion yen by the end of 2025 and a community of 681.100 Vietnamese people creating a bridging advantage for Vietnamese businesses.
- Among the top 5 sectors, IT, marketing, and consulting have low barriers to entry, requiring only company formation; while tourism and human resources require specialized licenses and specific financial requirements.
- The human resources sector requires a minimum net worth of 5 million yen and 1,5 million yen in cash per office, while the consulting sector, although not requiring a license, has exclusive professional boundaries for lawyers, tax consultants, certified public accountants, and administrative clerks.
- Every agency needs to prepare a common foundation, including the type of business (GK or KK), a valid office, a bank account, and a Business-Management visa with a capital of 30 million yen if the founder directly manages the business.
- Choosing the right field that matches your abilities and making thorough legal preparations from the outset are crucial factors in minimizing risks and building a sustainable business foundation in Japan.
Japan is becoming an ideal destination for international technology and artificial intelligence (AI) businesses. Not only attracting giants such as OpenAI, Anthropic, Microsoft, SoftBank, but also Vietnamese businesses such as FPT Software, CMC Technology are expanding strongly in Tokyo. With urgent demand for automation, support from the government and a potential market, Japan opens up great opportunities for AI companies wanting to assert their position in Asia.
If you are looking for How to set up a company in Japan to do technology business (AI)This article will provide a comprehensive overview from legal conditions, costs, procedures to special advantages when doing AI business in Japan.
1. Why is Japan attractive to technology and AI companies?
Market demand
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.
Advanced technology environment
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.
Legal corridor and support policies
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.
Potential business customers
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.
2. Reality: Many “big guys” choose Japan to expand AI
It is no coincidence that Japan is continuously chosen by the world's leading technology companies to expand their operations. In just the past few years, the wave of investment and presence of large enterprises in the field of AI in Japan has become increasingly evident.
Anthropic – Strategic move with Tokyo office
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.

OpenAI – Tokyo becomes the first destination in Asia
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.
Microsoft – Investing Billions of Dollars in AI in Japan
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.

SoftBank + OpenAI – Joint Venture SB OpenAI Japan
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.
Sakana AI – Japan's Domestic AI Star
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.
Vietnamese Enterprises – Firm Steps into Japan
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.
Besides Japan, Singapore, Mỹ, Hong Kong are also potential countries to open companies, register technology IP and develop AI, and call for technology investment capital.
3. Benefits of establishing a company in Japan to do business in technology (AI)
Choosing Japan as a destination to open a company in the technology field, especially AI, brings many practical benefits to businesses:
3.1 Access to high-demand, high-budget AI markets
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.
3.2 Leveraging the ecosystem of cooperation with Japanese corporations
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.
3.3 Policy support and funding from the government
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.
3.4 Increase brand reputation when setting up an office in Tokyo/Osaka
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.
With these advantages, Japan is not only a potential market, but also a strategic springboard for technology and AI companies to expand globally.
4. Forms of presence in Japan for international AI companies
Technology companies, especially in the AI field, can choose from a variety of forms of presence when expanding to Japan.
Depending on your business strategy, investment level, and long-term development needs, you can consider one of four options. Japanese company types popular after:
4.1 Establishment of Branch Office
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.
4.2 Establishment of a subsidiary
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.
4.3 Representative Office
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.
4.4 Joint Venture with Japanese company
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.
In general, if an AI company wants to test the market quickly, a representative office or branch office will be suitable. But if the goal is to build a brand, sign large contracts, and grow sustainably, a subsidiary or joint venture will be a more strategic choice.
5. Basic procedures to open a technology company in Japan
Job set up company in japan, especially in the field of AI and Digital Transformation, in Japan requires careful preparation and compliance with many legal regulations. Below are the basic steps with support solutions from GLA:
Step 1: Select legal type: KK, GK or Branch
- Kabushiki Kaisha (KK): Joint stock company, highly reputable, easy to attract Japanese partners.
- Godo Kaisha (GK): Similar to LLC, low cost, flexible management.
- Branch office: Suitable for companies that already have a parent entity and want to quickly establish a presence.
GLA helps you analyze the advantages and disadvantages of each type, and advises on the type that is suitable for your business's AI expansion strategy.
Step 2: Prepare capital conditions, office address and seal
- Minimum capital: Not required, but usually recommended is 5–10 million Yen to build trust with partners.
- Office address: Must be in Japan, usually in Tokyo or Osaka for convenient transactions.
- Seal (Hanko/Inkan): Must be officially registered for use in legal transactions.
GLA supports you in renting offices in Japanese technology centers, consulting on appropriate capital levels, and preparing procedures for registering a seal for your company.
Step 3: Business registration and Japanese corporate tax
- The application is submitted to the Legal Affairs Bureau.
- After obtaining the certificate of incorporation, it is necessary to register for tax at the local Tax Office.
- For AI companies, additional licenses related to IT services or data processing may be required.
GLA supports drafting registration documents, representing submissions to Japanese agencies, and providing specific tax advice for technology businesses, especially in international transactions.
Step 4: Apply for a work visa for foreign experts
- The AI technology field often requires international personnel, so companies must sponsor visas for experts.
- Popular visa types: Engineer/Specialist in Humanities/International Services or Business Manager Visa for founders.
GLA advises on the appropriate visa type, prepares sponsorship documents, and accompanies your team of experts during the visa application process.
Step 5: Register copyright & intellectual property
For AI companies, intellectual property (IP) is a core asset. Japan requires software copyrights, patents, and trademarks to be legally protected. This is especially important when working with Japanese corporations.
GLA supports connections with copyright lawyers in Japan, supports trademark registration, AI patents, and advises on strategies to protect businesses' intellectual property.
The process of opening an AI company in Japan is quite complicated but completely feasible with the support of GLA. With practical experience and a network of partners in Japan, GLA helps your business save time, reduce legal risks and quickly exploit the potential of the AI market worth tens of billions of USD in Japan.
6. Challenges & Notes for Technology Companies (AI) in Japan
When opening a technology company, especially in the AI field in Japan, international businesses need to be well prepared for the following challenges:
- Fierce competition from local and international businesses: Japan has many large technology corporations (NEC, Fujitsu, SoftBank, NTT Data) and a series of thriving AI startups. Market penetration requires foreign companies to have different solutions, outstanding technology or clever cooperation strategies.
- Data Privacy, AI Ethics: Japan has strict regulations on personal data (APPI – Act on the Protection of Personal Information) and is increasingly focusing on AI Ethics. Businesses need to ensure that AI systems comply with the law to avoid legal risks.
- There are cultural differences: The Japanese value trust, long-term relationships and collective decision-making. If foreign companies do not understand this culture, negotiating and cooperating with Japanese companies/partners can be difficult.
- High operating and personnel costs: Tokyo and Osaka are among the cities with the highest cost of living, office rent and salary in Asia. Businesses need to carefully budget when operating here.
7. How to leverage AI trends to succeed in Japan
International businesses looking to expand into the Japanese market can take advantage of the artificial intelligence (AI) trend through the following strategies:
- Investment in research & development (R&D) in Japan: Establishing an R&D center in the country helps businesses access high-quality human resources, quickly update new technology trends and grasp the actual needs of the Japanese market.
- Combining recruitment of local AI engineers and international experts: This combination brings a balanced advantage between global technological knowledge and understanding of Japanese consumer culture, behavior and tastes.
- Multilingual AI Product Development, Japanese priority: Localization is not just about language translation, but also about adjusting the user experience to suit Japanese culture, thereby increasing trust and competitive advantage.
- Cooperate with large corporations in Japan: Partnering with leading names such as Panasonic, SoftBank or Rakuten will help businesses expand their ecosystem, increase brand reputation and quickly reach a large customer network.
International AI companies that want to succeed in Japan need to combine technological innovation, product localization, and strategic partnerships. This is the key to helping businesses make a lasting mark in one of the world's leading technology markets.
8. How does GLA support you in establishing an AI technology company in Japan?
GLA provides comprehensive solutions to help international businesses establish technology companies, especially in the field of artificial intelligence (AI). Business model for opening an agency in Japan, include:
- Advisory choose the type of company suitable (Kabushiki Kaisha – KK or Godo Kaisha – GK) to optimize tax, legal and capital raising capabilities.
- Support in drafting and submitting company establishment documents to Japanese legal authorities, ensuring compliance with regulations.
- Provide address business registration office and representative office services to get started quickly without having to rent a large headquarters.
- Consulting on visa/entrepreneur and residence permit for founders and AI experts who want to go to Japan to run a company.
- Connect to open a corporate bank account in Japan or an international bank that supports technology businesses.
- Legal - accounting - tax support for companies to operate legally, especially in the high-tech field (AI, data).
- Long-term companionship: Not only supporting the establishment stage but also accompanying the Enterprise throughout the development process in Japan.
With experience in supporting Vietnamese businesses to expand globally, GLA is a reliable partner for you to lay a solid foundation for your AI company in Japan.
9. Frequently asked questions when opening a Japanese company to do technology business (AI)
1. Is it possible to open a 100% foreign-owned technology company in Japan?
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.
2. What type of company is suitable for AI business in Japan?
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.
3. Does Japan have a program to support foreign technology startups?
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.
4. Do I need a Japanese partner to open a branch?
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.
- Japan is a potential but fiercely competitive market for technology (AI) companies, especially with high requirements on data security and business culture.
- Many leading brands such as Anthropic, OpenAI, Microsoft, SoftBank and Sakana AI have chosen to open companies, set up offices or expand operations in Japan, showing the strong attraction of the technology market here.
- Foreign enterprises can open 100% capital companies in Japan with many suitable options, but need to carefully prepare for operating costs and personnel.
- Success in Japan depends on combining local R&D, hiring local staff, building multilingual products, and partnering with large corporations.
- GLA can accompany you every step of the way — from legal advice, company formation, to compliance and long-term growth in Japan.
With a transparent business environment, developed infrastructure and strict legal system, Japan has become an ideal destination for foreign entrepreneurs and investors looking to expand their business operations.