Key Points

The difficulty in business culture between overseas countries and Japan include language barrier, cross-cultural understanding, and decision-making process.

 Cultural Interpreters, Not Just Translators

• In general, English proficiency in Japan remains low.
• The Japanese culture of “reading between the lines” and ambiguous expressions can easily lead to misunderstandings overseas.
• Overseas, direct and frank communication tends to be preferred, and indirect and ambiguous expressions used by Japanese people may lead to misunderstandings.
• Advisable to engage local mediator to smooth out these language and communication gaps.

 Lack of cross-cultural understanding

• Japanese people tend to impose their own business models and values without fully understanding foreign cultures, customs, religions, and laws.
• For example, customs such as “ho-ren-so” (reporting, consulting, and communicating) and “nemawashi” (making necessary arrangements) that are common in Japan are not necessarily effective overseas.
• Recognition and response to harassment also vary depending on the country and region.
• It's important to understand differences in business culture between Japanese and overseas companies.

 Differences in decision-making processes

• In Japanese business culture, hierarchy based on position and age is emphasized.
• On the other hand, overseas, it is common to exchange opinions on a level playing field, regardless of age or position.
• Japanese people make decisions by consensus in meetings. And there are also issues such as decisions taking a long time and responsibility becoming unclear. On the other hand, overseas, decisions are made based on individual responsibility or top-down decision-making.
• I encourage foreign companies to review their business culture, understand overseas business cultures, and strive to respond flexibly.

When doing business with Japan, the first step is to let them know what makes your company attractive. However, it is necessary to use expressions and approaches that are familiar to Japanese people.

 Japanese language homepage

• A Japanese-style website using expressions in Japanese for Japanese people.
• Convey the appeal of products and services, company achievements, and reliability of licenses and approvals.
• The goal is to generate inquiries as a CTA.

 Online and offline advertising

• Listing, display, social media, and access analysis as web advertising
• Offline advertising as magazines, newspapers, trade journals, and information websites.
• Creation of advertising messages and catchphrases familiar to Japanese people. Eye-catching illustrations and photographs.

You can start a business and engage in cross-cultural activities in Japan without obtaining a visa (residence status), while remaining in your own country.

 1st step: Preparation

• Conduct market research and feasibility studies in areas that interest you.
• Find Japanese partners in industries and cultural fields that interest you.

 2nd step: Company establishment

• Decide on the registration items necessary for establishing a company
• Transfer capital (1 million to 5 million yen) to the bank account of your Japanese partner.
• Your Japanese partner will become the representative director and shareholder and establish the company.
  *You can also become a member of the board of directors.
  *You can also become a 100% investor.
• After establishing the company, create a bank account in the company's name.
• If you establish a company as a 100% Japanese partner shareholder, your shares will be transferred to you through a shareholder transfer agreement.
  *Except for specific business activities (media, telecommunications, finance, infrastructure, etc.), 100% foreign capital is permitted.

 3rd step: Operation

• Participate in management as a director while living overseas
• You can enter Japan on a short-term visa and participate in the meeting. However, it is on the condition that you will not be paid.
• You will receive overseas remittances in the form of consulting or advisory fees, or stock dividends. The difficulty of a business management visa (reference)
• There is a contradiction in that you cannot obtain a “business management” visa without a company.
• You can obtain a resident card because you have a visa.
• And you can open a bank account or sign a lease for an office because you have a resident card.
• It is strange to say that you should have a company first.
• At the very least, the reality is that you cannot establish a company without the cooperation of a Japanese person.
• In addition, a five-year business plan must be submitted for review.
• For Westerners, who are accustomed to the world of elevator pitches (where you have a few seconds to catch the interest of investors in an elevator), it is unreasonable to expect them to create a business plan that predicts the next five years.
• Also, when renewing your visa (for example, after one year), if your company is not profitable, your visa will not be extended. It is rare for a new business to become profitable within a year. Even if you have worked hard to establish your company, it will be ruined if your visa is not renewed.
• The Japanese government has decided to raise the amount of capital required to obtain a visa from 5 million yen to 30 million yen as of Oct. 2025 in order to restrict visa abuse.
• For the reasons above, it is difficult in reality for foreigners to obtain a business management visa and start a business in Japan. Our service of "Remote Business Owner Path" is a detour solution.

Our Proven Japan Entry Services

Your Step-by-Step Japan Entry Journey

Proven Track Record

Japan Market Growth Trends

Key Market Opportunities

Frequently Asked Questions

Do I need to speak Japanese to succeed in Japan?

Not initially. We provide bilingual support and cultural interpretation. However, Japan ranks 92/116 in English proficiency, so localization significantly improves success rates. We help you navigate this strategically.

What's the minimum investment needed to start?

You can legally incorporate with ¥1 capital, but practical minimums depend on your visa goals and business needs. Our Remote Business Owner path lets you start with lower risk before full commitment.

How long does the market entry process take?

Branch setup: ~1 month, Subsidiary: ~2 months. However, cultural relationship building and market preparation often take 6-12 months. We help you sequence this efficiently.

What makes you different from legal firms?

Legal firms handle paperwork. We're cultural interpreters who understand both business and cultural barriers. We combine legal compliance with nemawashi guidance, relationship building, and ongoing cultural coaching.

Can you help with the new Invoice System compliance?

Yes. The Qualified Invoice System launched October 2023 affects all businesses. We ensure compliance and help you navigate the transitional relief periods through 2029.