When people think of countries to start their business, Japan is rarely at the top of their minds. Despite this, I genuinely believe that Japan is a country you should consider. Here are some reasons why:
Low Barrier to Entry
Starting a business from scratch is often the hardest step. Once you have a profitable venture, scaling it becomes much easier. Japan offers a lower barrier to entry, primarily from a financial perspective. The cost of living in Japan and public health insurance make it feasible to live on a small income. Compared to the United States, you can afford to live off a part-time job, giving you ample time to work on your business. Additionally, you can sustain a business with much lower revenue than in America.
Moreover, obtaining office space or a location for your restaurant is more accessible due to lax zoning laws and many small rooms available for rent. This makes setting up your business on a lower budget much more manageable.
Low Competition
Japan does not have a strong culture of entrepreneurship. Compared to Western countries, the ultimate idea of success for many Japanese is to secure a job at a large, renowned company. This means those who choose to pave their own path often face little competition from the native population.
Additionally, the language barrier acts as a deterrent. Unlike the English-speaking world, where billions of people from lower-income countries can compete directly with high-income countries, Japanese people have a low rate of English fluency. This serves as a sort of shield against global competition. If you can speak both English and Japanese, you’ll have a significant advantage in starting a business in Japan.
Centralized Economy
Japan’s economy is centralized in Tokyo, with easy access to other major cities if needed. This means that no matter your business idea, you can access any industry and supply chain by simply living in Tokyo. Moreover, Japan’s culture and climate are very similar throughout the country, making it easier to network and reach a large audience without considering different cultural values.
Respect for Property
Japanese people do not have a strong culture of stealing, both physically and digitally. If you open a physical store, you can rest assured that theft, vandalism, or harm to your business will be very unlikely. Similarly, if you sell media or software, Japanese customers are less likely to pirate it and more likely to pay for it.
Business Manager Visa
Now that I’ve convinced you to start a business in Japan, you might be wondering how you can do so as a foreign national without citizenship. Fortunately, there’s the Business Manager Visa, and here are the requirements to obtain it:
-
You must have ¥5,000,000 (approximately $33,000 USD) as initial capital for your business.
-
You must have office space in Japan registered with your company.
-
Your business plan must be approved by Immigration.
-
You must have sufficient funds to live independently in Japan.
-
You must hire at least one full-time employee (either Japanese or a long-term foreign resident).
Approval of the application also depends on additional factors such as fluency in the language, ties to the country, and “good moral character,” which means no criminal record.
Once you obtain the visa, you are free to work on your business and reside in Japan.
If you have any more questions about the process or general advice for living in Japan, please feel free to reach out to me here
Do you need a Car in Japan?