3 Most Common Misconceptions about Starting a Business in Japan as a Foreigner

What Opportunities Exist in Japan to Start a Business?

starting a business in Japan

Is starting a business in Japan is it as difficult as it seems?   Japan has the third-largest economy in the world and it is one of the most promising countries for entrepreneurs, consistently attracting quite a lot of foreign ones looking to set up their own business there. However, many entrepreneurs decide not to launch a business in Japan because of some misconceptions that seem to be going around.

If you’re an entrepreneur searching for new horizons in the Land of the Rising Sun, we’ll help you by debunking some of the most common myths of starting a business in Japan as a foreigner.

You Must Pay $50,000 USD for a Business Manager Visa

You really don’t need to pay for a business manager visa. You get one by investing at least $50,000 USD (5 million yen) into your new company’s capital, which is actually the money that you’ll use for the office space, equipment, salaries or anything else you need for launching and running your business.

As of 2018, Japan is launching a one-year startup visa program…

You can apply for a business manager visa after registering your company, and you don’t need any degree or experience in your chosen field to get the visa. As of 2018, Japan is launching a one-year startup visa program, extending its current six-month program. After that time period, you can extend your visa depending on how well your company is performing.

You Can Hire Only Japanese Workers

This is simply not true. You can hire recruits from anywhere in the world, which is actually something that numerous Japanese companies are increasingly doing. The number of foreign workers in Japan reached a record high of 1.28 million near the end of 2017, which is 18% higher than the previous year.

Therefore, it’s not obligatory that you hire only Japanese employees, which is a great thing for you if you don’t know the language.

You Don’t Need to Know the Language to start a business in Japan.

This is one of the most common misconceptions when it comes to starting a business in Japan as a foreigner. You may hire only English-speaking employees, but you simply need Japanese in order to register your company and handle all the paperwork, because everything’s in Japanese.

Japanese language in Business
Japanese language in Business

Luckily, if you don’t know the language, you can hire a local SME company to help you with all the complicated bureaucracy, but first, make sure it’s a credible and reliable one.

Nevertheless, you should definitely start learning Japanese if you’re serious about setting up your business in Japan, because not only will you be able to communicate with your clients more effectively, but you’ll also make your life on the island much easier.

If you happen to need a professional to help you with some aspects of starting your own business in Japan, we’re here for you. We are proud to have experts in our team with years of experience in helping entrepreneurs realize their dreams. We can provide you with back-end support, such as accounting, legal and tax advice, so feel free to contact us and we will be more than happy to provide a helping hand.

Today’s “otsumami” – a bite size snack:

Many foreigners are successfully running businesses in Japan. It can be lucrative if done right, good solid research and planning is required.

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