Doing Business in Japan
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Knowledge base on doing business in Japan. Topics: visas and immigration (including the Business Manager visa 経営・管理 and the October 2025 reform), company registration (株式会社/合同会社/個人事業主), taxes, legal issues and cases, documents and procedures (banking, offices, accounting, hiring), useful links and contacts, and other business-relevant topics (culture and mentality, networking, marketing, real estate, lending, insurance).
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Office Situations: Startup Programs, Home Offices, and Restaurant Real Estate
Practical office situations beyond basic rental: the Shibuya Startup Program's flexible location rule, the tax-audit risk of leasing on a director's personal name, commercial-property search tips and…
The Shibuya Startup Program's office requirements are mostly about specific photo and appearance standards (immigration is picky about formal "booth" offices), but there is no requirement to register the company in the Shibuya district from day one — a move there later is fine. A cheaper office in another district can be rented first for registration, then a switch made to the target district: in a real case, a participant rented a Tensho office in a cheaper district for registration and later moved to a Shibuya office in the same network, which worked out cheaper than signing a brand-new contract. Under the Shibuya Startup Program, some operators offer the first month of rent free, and in one case even two free months. A lease signed on the director as a private individual is acceptable as a first step (for immigration purposes), with a later transfer to the corporation — a common practice, moving the contract to the company after registration by informal agreement with the office company. Caution: a tax advisor considers office expenses risky at audit time if the lease is on a private individual while the company uses the space — it can be treated as director compensation/a bonus with double taxation. The recommendation is to transfer the lease to the company as early as possible, or set up a sublease. Rent paid before the corporate contract is signed apparently cannot be booked as a company expense. Commercial leases often explicitly forbid "overnight stay" in the office even with 24/7 access — detection risk comes from the card-access system. When renting, subletting part of an office to several small startups ("booths") is common practice and is usually supported by the lease if the right to sublease is explicitly stated. Commercial property is searched through the aggregators suumo.jp and minimini.jp (the latter gets positive feedback for working with foreigners). Renting an office to a foreign entrepreneur often requires a guarantor or a landlord willing to work with foreigners; a classic office is often not rented to someone on a student visa. It is worth confirming with the agent or landlord whether the rented space can be used as a 事業所 (business address) — look for listings marked 事務所可 or 事業所利用可能; the phrase 居住専用 (residential use only) in a lease means using the address for a sole proprietorship could breach the lease. Osaka is considered very expensive for commercial rent (chat opinion, comparable to or above Tokyo); Yokohama is comparable to or pricier than locations 30 minutes from central Tokyo. Legal practice differs between regions (Kanto/Tokyo versus Kansai/Osaka), and local lawyers advise working with a lawyer in the same region where the application is filed. For a small restaurant, buying an inexpensive property (akiya) is often more cost-effective than renting an expensive space in Tokyo — it requires renovation investment but saves on high rent in Tokyo, Osaka, or Yokohama; two-story restaurants are common in Tokyo. When renting through an agency to open a restaurant, having a local "restaurant business consulting company" involved may help build bank trust when applying for a loan (unconfirmed chat opinion). Source: https://www.shibuya-startup-support.jp/ — Official site of the Shibuya Startup Support program.