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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Freelance Law, Business Succession, Open Questions, and Networking
Japan's small-business succession crisis, the new freelance-protection law effective November 2024, several unresolved legal questions on exports and Stripe/Steam agency arrangements, and networking…
The average age of small and medium enterprise (SME) leaders in Japan rose from 55–60 (in 2000) to 65–69 (in 2015), and the business-succession problem remains unresolved (source: White Paper on SME 2023, Small and Medium Enterprise Agency, https://mori-keiei.com/the-biggest-challenge-facing-japans-small-and-medium-sized-enterprises-business-succession/). Many small Japanese companies close not because the business failed but because the owner has no heir and is retiring — reportedly relevant to about 60% of small businesses (per a ChatGPT Deep Research-generated report, unverified, no official source). An AI-based M&A matching service for transferring heirless businesses, built by entrepreneur Shunsaku Sagami, was discussed as a potential way to buy a going concern instead of starting from scratch (see https://www.forbes.com/sites/zinnialee/2024/07/07/how-japans-youngest-billionaire-shunsaku-sagami-uses-ai-to-disrupt-ma-brokering/). Separately, a new freelance-protection law took effect in Japan on November 1, 2024, regulating protection for freelancers against bad-faith clients — incomplete terms of cooperation, delayed payment (source: https://www.freee.co.jp/kb/kb-trend/freelance-new-law/). Per statistics cited from the law: 37.7% of freelancers reported problems with clients, about 60% of those due to unclear compensation terms, and 40.4% of freelancers work with only one client, creating dependency. On open questions raised but not resolved in the chat: exporting trucks or cars from Japan to some countries (for example, Georgia) was not researched in depth; exporting many goods and trucks to Russia is now difficult or under sanctions, and registering a used-car export business requires a separate license, with no clear information on timing or cost found in the chat. Details on the bureaucracy for importing food or spices from abroad were not covered either. Selling games on Steam as a Japanese individual, and the legal question of agency relationships (a foreign IT vendor plus a Japan-based agent company collecting payments via Stripe and forwarding them to the vendor), were raised without a substantive answer — these remain open questions. Experience with a Stripe contract for an individual/sole proprietor at a Japanese personal address (including a rental) was mixed: one participant's Stripe support confirmed this was permitted and "by the book," while another participant had their account blocked when registering as a sole proprietor with a rental-apartment address. On checking a WeChat registration: before 2017 one could register with only a phone number; afterward, confirmation via QR code from an already-registered user is required (current as of 2024–2025). Finally, participants discussed forming an NPO or association of foreign entrepreneurs in Japan to lobby for business interests, akin to a chamber of commerce, potentially building on an existing Telegram community of 300-plus members; a chamber of commerce for foreigners is not a government body but a legitimate channel for conveying business opinion to government agencies. An example of a successfully registered NPO is Tokyo Bioclub (ippan shadan hojin, ISH), a community with a BSL1 lab in Shibuya that runs events and joint experiments (https://bioclub.tokyo/en/about/). Separately, posting intern-recruitment notices on Japanese university campuses may formally require the administration's permission, though many do it without one in practice; a group of two or three people tends to look more "official" and can get permission more easily than a lone individual. Hiring interpreters (consecutive or simultaneous) for events is priced by interpretation type, subject specialization (technical topics cost more), language pair, and how far in advance materials are provided; headsets are usually supplied separately from the interpreter. Source: https://mori-keiei.com/the-biggest-challenge-facing-japans-small-and-medium-sized-enterprises-business-succession/ — Article citing the White Paper on SME 2023 on the business-succession problem in Japan. Source: https://www.forbes.com/sites/zinnialee/2024/07/07/how-japans-youngest-billionaire-shunsaku-sagami-uses-ai-to-disrupt-ma-brokering/ — Forbes article on an AI-based M&A matching service for heirless businesses. Source: https://www.freee.co.jp/kb/kb-trend/freelance-new-law/ — Overview of Japan's new freelance-protection law, effective November 1, 2024. Source: https://bioclub.tokyo/en/about/ — Example of a successfully registered NPO (Tokyo Bioclub) in Japan.