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Overview: Japan’s IT industry represents one of the largest markets globally. However, its progress in digitalisation has lagged behind other advanced nations. The COVID-19 pandemic served as a turning point, highlighting the urgent need for digital transformation. This led to government-led initiatives, such as the establishment of the Digital Agency, and a significant increase in corporate investment in DX (Digital Transformation). According to Japan’s Ministry of Internal Affairs and Communications’ 2024 White Paper, the nominal GDP of the information and communications industry in 2022 was 54.7 trillion yen, a 1.5% increase from the previous year (53.9 trillion yen). This industry accounts for approximately 10% of Japan’s GDP. Gartner’s report also projects Japan’s enterprise IT spending to rise by 4.7% in 2023, reaching 28.5344 trillion yen compared to 2022. Source: Gartner Key Features: Although improvements are gradually emerging, solving Japan’s IT talent shortage remains a long-term challenge. Business Opportunities for Foreign […]

In Japan, the bow (お辞儀, ojigi) is a fundamental aspect of daily life and business interactions, representing respect, humility, and acknowledgment. In a business setting, bowing is not just a customary gesture but a powerful expression of professionalism and cultural understanding. Properly executing a bow can set the tone for a successful interaction, while an improper bow can leave a negative impression. Why Bowing is Important in Business Bowing in Japan is deeply rooted in the culture, and in business, it is a way of showing deference to another person, especially those in higher positions. The bow serves as an indicator of respect, and how deeply you bow can convey the level of formality in the relationship. In business settings, bowing is not only for greetings but also used to express gratitude, apologies, or to bid farewell. For those unfamiliar with Japanese business etiquette, understanding the nuances of bowing can […]

Did you know that a misstep in etiquette could cost you a business deal in Japan? Japan is a country where tradition and respect are deeply woven into every aspect of life, especially in business. Here, a bow isn’t just a greeting, and a contract isn’t just a formality. The way you interact, communicate, and even present yourself in a meeting speaks volumes. Mastering proper business etiquette can mean the difference between sealing the deal and losing out to a competitor. In this first article of our series on Japanese business etiquette, we’ll dive into why understanding these unspoken rules is essential for anyone looking to make their mark in Japan’s unique business world. Respect and Harmony: The Heart of Japanese Culture At the heart of Japanese culture is wa (和), or harmony. This isn’t just a buzzword—it’s a principle that influences how business is done. In Japan, the focus […]

In a previous article that gave an overview of incorporating a company in Japan, one of the requirements is a company seal. This guide will cover more in-depth about the actual creation and registration process.  Introduction to Seals: Hanko and Inkan in Japan In Japan, a seal (はんこ hanko/印鑑 inkan) functions as a legal signature for individuals and entities. These seals represent official approval and are required in various formal settings. The terms hanko and inkan are often used interchangeably in Japan, but they refer to different aspects of the same practice. Both are types of seals used to authenticate documents, but the main distinction lies in their use and context. Hanko is the general term for any stamp or seal used by individuals or businesses. inkan specifically refers to the physical seal used for official purposes, particularly by corporations.  For personal use, individuals typically have a smaller seal for […]

Opening a corporate bank account can be an intricate process, especially for those who are unfamiliar with Japanese banking norms. While some may initially look into personal bank accounts as an option to get started with transactions in Japan, opening a corporate bank account is essential for business operations. This article explains the main steps and essential information required to open a corporate bank account, from documentation to processing times, and provides guidance on which banks are most commonly recommended for foreign businesses. Steps to Open a Corporate Bank Account in Japan Opening a corporate bank account in Japan can be complex due to strict anti-money laundering (AML) regulations, stringent documentation requirements, and the need to conduct much of the process in Japanese. Here is an overview of the key requirements and steps. Recommended Banks for Corporate Accounts Here is a table comparing the pros and cons of popular banks […]

If you’re a foreign business looking to establish a presence in Japan, you’re not alone. Japan’s market offers incredible opportunities, as we’ve discussed in our previous articles. However, whether you’re an entrepreneur starting fresh or an established company looking to set up in Japan, navigating the incorporation process can be challenging. In this article, we will highlight some common pitfalls that entrepreneurs and overseas experienced business owners often face during the incorporation process and offer some simple essential tips to help you avoid them. Not Understanding the Legal Structure Options One of the first things you’ll encounter when incorporating in Japan is deciding on the type of legal structure for your business. Many newcomers assume that a Kabushiki Kaisha (KK), or joint-stock company, is the only option. While a KK is popular for its credibility and limited liability, Japan also offers a Godo Kaisha (GK), which is similar to a […]

This topic will cover the basics of incorporating a company in Japan. Navigating the Japanese bureaucratic system can be complicated, so this overview will help you understand where to start.  Understanding Company Types and Legal Structure The first initial step is understanding the type of company structures available in Japan, for further information please refer to one of our previous articles on the topic here.  This overview will mainly explain the process for  Kabushiki Kaisha (KK) and Godo Kaisha (GK). As a quick explanation, the KK company structure is a corporation with stock, enabling it to raise capital through investors, while GK  is a limited liability company similar to a limited partnership, with simpler requirements than a KK.  Key Requirements and Initial Steps Before initiating paperwork, consider the following. In Japan, it is possible to establish a company with a single director; however, companies with multiple shareholders may benefit from […]

For companies seeking a solid foothold in Asia, Japan offers a strategic, high-value market with untapped potential. As one of the world’s most stable economies, Japan combines consumer sophistication, high standards for quality, and an unparalleled commitment to innovation. From its advanced infrastructure to a skilled workforce, Japan provides a foundation for long-term business success. Although entering this competitive market requires thoughtful planning and local insight, the potential rewards—access to a sizeable, high-spending consumer base and a regional position in Asia—make Japan an ideal destination for companies ready to expand. Japan’s Strategic Market Potential Despite recent economic shifts, Japan remains the world’s fourth-largest economy with a GDP of over $4 trillion. What’s more interesting is the buying behavior of Japanese consumers. They value quality, innovation, and trust in brands, often translating into higher spending on products and services that meet these expectations. For businesses offering top-tier products or those that […]

Expanding a business into Japan can be complicated, so here is a handy guide for foreign investors to figure out the right structure for their company. In Japan there are four main types of companies, each offering distinct advantages depending on company goals. Below is a simple breakdown to give a quick introduction to each type, its merits, demerits, and differences in requirements. Company Type Merits Demerits Requirements Kabushiki Kaisha (KK)株式会社 High investor confidence, can issue shares Complex setup, high costs Articles of incorporation, minimum capital, detailed paperwork Godo Kaisha (GK)合同会社 Low setup cost, simple management Less attractive to investors Fewer formalities, flexible capital requirement Goshi Kaisha合資会社 Flexible management,  mix of partner liability General partners face unlimited liability A partnership agreement, less formal than KK Gomei Kaisha合名会社 Simple partnership, all partners share responsibilities Unlimited liability for all partners Simple registration, articles of partnership After getting the basics on the four […]