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Strengths and challenges for foreigners running a shop or company in Japan ②

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Good afternoon, ladies and gentlemen!


Today we have another series of articles on today's topic.


We look at the hurdles to starting a business in Japan!


What are the hurdles for foreigners to run a business in Japan?

Restrictions by Business Administration Visa 

Next, we introduce some of the barriers for foreign nationals doing business in Japan.

Restrictions due to status of residence 

Unique business practices 

Language barriers 


Restrictions due to status of residence 

When a foreign national stays in Japan for more than three months, a medium- to long-term status of residence (generally called a visa) is required.

The activities a foreign national can carry out in Japan differ according to the type of status of residence.

Visas that allow you to run a shop are status-based visas, such as “permanent resident”, “spouse visa” and “permanent resident”.

Status-based visas have no restrictions on working, so it is possible to run a business.

There are two types of work visa: “business administration visa” and “advanced professional visa”.

Highly specialised occupations have annual income requirements, age requirements and education requirements.

Business management visas include facility requirements, size requirements and business existence.

The hurdles to receiving a visa are very high.

According to some sources, 90% of business administration visa applications are handled by administrative scriveners.

(Gyoseishoshi Lawyers and Still Offices also help with business administration visas.) 

The work-related (business administration visa) is a visa status to manage a business and perform administrative duties.

In order to obtain this permit, a number of requirements must be fulfilled.

The five most important of these are as follows.


The existence of an office or shop 

The size of the business is at least 5 million yen 

The source of the 5 million yen 

Proof of the existence of the business 

The applicant only works at a desk 


If you do not meet all of these requirements, the Immigration Bureau will not issue you with a permit.

Even if you do, there is a risk that you will be ineligible for the next and subsequent renewals.

For Japanese nationals and status visa holders, it is possible to start with 500,000 yen for a home and office... 

For business management visas, an office or shop separate from the home is required.

You need more than a substantial amount of funds from the start.


The source of the JPY 5 million will also be checked.

If you can prove that you raised the money in a legitimate way, you will be fine.

If you cannot prove it, you will have a tough time.

The business administration visa is a residence visa for management and administrative work.

Put another way, you cannot do any work other than desk work.

For example, if you are a restaurant, you are not allowed to work in the kitchen or in the hall.

Also, if it is a massage parlour or a beauty parlour, the president himself cannot perform treatments or cuts.

In the case of a shop business, it is essential to employ staff to take care of on-site work.

However, clerical work is also possible on a business management visa.

For example, IT companies, real estate companies, insurance agencies, trading companies and other office-based businesses can be run by a single applicant.


What are the unique business practices in Japan?

Although every country has its own business practices and local rules, Japan also has its own unique business practices and local rules.

People who have run companies overseas may have problems with business practices when they enter the Japanese market.


What are the language and cultural barriers?

Japan is a Japanese-only country.

The culture is also different in some aspects from any other country.

In American international political scientist Dr Samuel Huntington's book The Clash of Civilisations... 

Japan was the only country grouped alone in the cultural grouping.

Cultural barriers are very thick when it comes to business and work.

This is a bit of a digression, but for your information.


How was it?

Why don't you step forward and enjoy the challenge of starting a new business in Japan?

See you next time.

Stay tuned for next week!


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