Have you ever considered starting or transferring a business into the vibrant market of Tokyo, Japan?

Japan is an extremely attractive market as well as an exciting and comfortable country 

to reside in, making it a keen place of interest for foreign entrepreneurs, freelancers and business 

owners from all around the world.  So why is it that despite these factors, the amount of foreigner entrepreneurs remains incredibly 

 

low—with the Investor visa category currently making up only 1% of the active visas in Japan?

 

Foreign entrepreneurs face a wide variety of obstacles and challenges when attempting to break into the Japanese market.  Below are eight common points of concern that are frequently encountered.

 

1. Language Barrier
2. Complicated and Lengthy Process of Applying for Visa
3. High Costs for Necessary Services
4. Difficulty in Securing Office Spaces (Both Short & Long Term)
5. Limited Availability of Bilingual Back-End Services
6. Major Culture Differences in Japanese Business Environment
7. Difficulty of Conducting Business Without Existing Networks In Place
8. Difficulty Sourcing Bilingual Staff

 

1. Language Barrier

The Japanese language is complex with written alphabets that are significantly different from many Western languages.  While there has been a push towards more English language support for a number of things, legal documents in Japan for visa paperwork are still only available in and required to be submitted in Japanese.

 

2. Complicated and Lengthy Process of Applying for Visa

Before the application for the actual Investor visa, a potential applicant must first apply for a temporary visitor visa for the specific purpose of assembling the required documents for the lengthier visa.  This process requires preparing (and supplying proof of) temporary housing for the full six-month duration of the intended temporary visa, which in itself can be a challenge with the relatively limited English-supported housing resources in Japan.

Once this is approved and the applicant arrives in Japan they then have the challenge of assembling all the required logistical resources in time, which can be time-consuming and confusing as the acquisition of certain essentials (such as a Japanese phone plan) requires the prior establishment of other documents/accounts

 

3. High Costs for Necessary Services

Foreigners who don’t understand Japanese must hire translating/copywriting services for the visa applications as well as bilingual legal counsel, etc. These services are often quite costly and add up rapidly.

 

4. Difficulty in Securing Office Spaces (Both Short & Long Term)

Similar to leasing housing in Japan, there are limited (perhaps even fewer) resources that offer correspondence in English when it comes to securing commercial leasing spaces.

 

5. Limited Availability of Bilingual Back-End Services

Bilingual back-end service contractors (such as accounting, payroll, etc.) can be difficult to locate and quoted costs can be significantly above standard market pricing.

 

6. Major Culture Differences in Japanese Business Environment

Standard business practices in Japan often differ significantly from other markets, especially Western countries.  There are numerous yet unspoken points of business hierarchy and etiquette that are essential to leaving favorable impressions on clients and successfully negotiating business deals.

 

7. Difficulty of Conducting Business Without Existing Networks In Place

A major part of Japanese business culture is the heavy emphasis on personal relationships cultivated between companies over years of conducting business or working in conjunction with each other.  As such, it can be extremely difficult to enter the Japanese market without any sort of existing business network in place.

 

8. Difficulty Sourcing Bilingual Staff

For business owners looking to source staff locally, effectively finding and hiring bilinguals who adequately meet the qualification demands is often a challenge, with recruitment services also being costly but having mixed results.

 

This spring, with our new project being launched by KEIKYU Accelerator, FREA is expanding our offerings to include comprehensive business logistics support services to foreign entrepreneurs seeking to do business in Tokyo! We will be working hard towards tackling the above eight points of difficulty and more, and are very excited to bring our existing strengths in real estate and fully bilingual correspondence and apply them towards assisting the establishment or foreign startups and other business ventures within Japan.

Currently we are accepting inquiries for free consultation, so if you are seeking to establish a startup or small business, or transfer an existing company into Japan, please don’t hesitate to reach out!