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Doing Business in Japan

Japan boasts the third-largest economy in the world, driven by its technologically advanced industries, well-developed infrastructure, and a highly skilled labor force. The nation has a solid industrial base with sectors such as automotive manufacturing, electronics, and robotics being predominant forces in the global market. The government’s pro-business policies, such as corporate tax reductions and deregulation, create a conducive environment for doing business in Japan.

Statistics about the Economy of Japan

As of recent data, Japan has a high GDP, showcasing its economic power on the global stage. Major industries contributing to this GDP include automotive manufacturing, information technology, and robotics. Japan is home to many globally renowned companies, including Toyota, Sony, and Panasonic, indicating the country’s stronghold in the international business arena. Furthermore, Japan maintains a low unemployment rate, showcasing its stable economy.

Japan Business Guides

Why Do Business in Japan?

Doing business in Japan offers an array of opportunities owing to its sophisticated consumer base, technological advancements, and robust industrial sectors. The country offers a stable and mature market, with consumers valuing high-quality products and services. Moreover, Japan’s strategic location in Asia makes it a lucrative choice for businesses aiming to penetrate the Asian market.

Business Culture in Japan

The business culture in Japan is characterized by a hierarchical and group-oriented approach. Respect and honor are pivotal in business relations, often reflected through practices such as exchanging business cards with both hands and bowing as a sign of respect. Understanding and integrating these cultural nuances can foster successful business relationships in Japan.

Networking in Japan

Networking in Japan plays a critical role in fostering business relationships. Industry-specific seminars, trade fairs, and business chambers offer platforms for networking. Building relationships with local partners can be advantageous, as the Japanese business community often relies on long-term relationships and trust.

How to Hire in Japan

Japan has a highly educated workforce, with numerous platforms available for recruiting, including job portals, recruitment agencies, and university recruitment drives. Understanding the Japanese labor law, which governs aspects such as working hours, overtime payments, and safety standards, is crucial when hiring in Japan.

Introducing the Employer of Record and PEO Solution

Employer of Record (EOR) and Professional Employer Organization (PEO) solutions can be ideal alternatives to setting up a full-fledged entity in Japan. These solutions enable companies to hire local talents without establishing a legal entity in Japan, facilitating compliance with local labor laws and regulations. Engaging with an EOR or PEO allows businesses to focus on core operations while mitigating legal and financial risks.

How to Get a Work Visa

Securing a work visa for Japan involves obtaining a Certificate of Eligibility (CoE) through sponsorship by a company based in Japan. Following this, individuals can apply for a visa at a Japanese embassy or consulate in their respective countries. The process requires meticulous adherence to the application procedures and submission of all necessary documents.

How to Register a Company

Registering a company in Japan is a systematic process involving steps such as notarizing the company’s articles of incorporation, registering with the Legal Affairs Bureau, and obtaining a company seal. Moreover, companies must register for various taxes and social insurances. A comprehensive understanding of the legal prerequisites and associated documentation is essential for a smooth registration process.

How to Acquire Real Estate for Business

Acquiring real estate for business in Japan involves a series of steps, including selecting a suitable property, scrutinizing legal documents, and entering into a sales agreement. Engaging a real estate agent with expertise in the Japanese market can be beneficial. It is advisable to conduct a thorough due diligence process to avoid potential issues in the future.


Embarking on a business journey in Japan offers avenues to tap into a market known for its technological advancements and rich industrial heritage. While navigating through the complexities of the Japanese business environment might seem daunting, adhering to the local business etiquettes and leveraging the available resources can pave the way for a successful business venture in Japan. Remember to continually update yourself with the evolving economic policies and market trends to stay competitive in the dynamic Japanese market.

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Article By
Milly is an international lawyer and tech entrepreneur who has advised companies on expanding globally for over 5 years. She is an advocate of remote hiring and regularly consults on future of work matters. Milly founded RemotePad to help employers learn more about building and growing international teams.