13 Popular Businesses for Foreigners to Start up in Japan 2024

With the worldwide impact and economic repercussions of the COVID-19 pandemic, it is inevitable that numerous businesses have taken a hard hit. This is no exception for Japan. In a bleak job market and economic environment, it may seem daunting to set up their business. However, this presents an excellent opportunity to kickstart your entrepreneurship dream. The first step to starting your business in Japan is to register company in Japan. We will explore what are the popular businesses for foreigners to start up in Japan 2024. 

Ranked as the world’s third-largest economy after the United States and China, it is no wonder that Japan remains a key market for both international and small businesses. While living and working in Japan is a unique experience for many aspiring entrepreneurs, there are bound to be challenges when you start a business in Japan. Therefore, it is crucial that you choose a business idea that caters to the needs of the Japanese market prior to setting a business in Japan. Here are 13 popular businesses that you can consider setting up:

1. Import and export

With Japanese consumers having high disposable incomes, this has led to a heightened interest in high-end goods and growing demand for globalised services. This presents opportunities for individuals to engage in import and export businesses as they can leverage Japan’s love for foreign goods. This includes food products, fashion items, cars, furniture and alcohol. Additionally, individuals may also export items in Japan back to their home countries to sell. 

2. Agriculture

Setting up an agricultural business is a viable option provided there is demand for food and other types of agricultural products in the country. This applies to Japan as there is great demand for fruits and vegetables, as well as livestock products like eggs and cheeses. If you have experience in the agriculture field, Japan is an ideal place to start a business. Moreover, starting an agricultural business only requires a small amount of capital and it is possible to start one without formal qualifications or certificates.

3. English language schools

It is a common sight to witness foreigners teaching English conversation classes at public schools or private language schools in Japan. Japanese do not usually speak fluent English, as demonstrated with a ranking of 55th out of 100 countries worldwide in the Education First EF English Proficiency Index (EPI). Teaching English provides a platform for foreigners to obtain a visa and experience if teaching as a career is suitable for them. Moreover, you can research the market and determine if you could develop a niche of teaching children or focus on business English. 

4. Restaurants

Another popular business idea in Japan is setting up a restaurant due to its relative ease. Japan is a food culture where there is a wide array of popular Japanese food items, such as mochi balls and sushi. Depending on your preferences, you can create a restaurant concept based on food from your country or Japanese food. Indian curry, British pubs, American burgers are some of the many popular offerings and have sprung up around big cities such as Tokyo. 

5. Real Estate

The real estate industry thrives in any fast-growing economy, such as Japan. Japan is one of the only countries in Asia where foreigners are able to own properties. While the real estate industry may not be the easiest industry to navigate, there are numerous untapped opportunities and potential in Japan for real estate investors. 

6. Alternative Medicine

Alternative medicine is a lucrative sector in Japan, which is similar to countries such as India and China. As there is substantial demand for herbal medicine products and natural health practitioners, it presents massive business opportunities in the alternative medicine practice industry. This line of business is thriving and profitable in the country. Therefore, you should start a business in Japan if you are knowledgeable about yoga, Ayurveda medicine, homoeopathic medicine or other practices in alternative medicine. 

7. Drone services

While Japan implemented a number of laws regarding where and when drones can be flown, the commercial drone delivery business remains one of the viable businesses to start in Japan. It involves assisting your clients to deliver their goods or packages via drones to their intended destination. With a commercial drone delivery business, you can either open an online or offline store or choose to operate without a store.

Moreover, you could sell aerial photography shots and photos and videos of wedding receptions too. 

8. Massage and salon

In Japan, people love to pamper themselves and it is a Japanese trend to get massage therapy. Opening a spa is a good business idea if you are able to develop a niche and offer a unique experience such as Swedish Massage. It would be ideal if you can get your certification in massage therapy. 

9. Game centres & casino

Video gaming in Japan is a major industry. You can consider setting up a casino and game centre in an area where many gamers and gamblers gather. Casino and game centres are popular industries around the world, and are not only found in Las Vegas. Hence, these are profitable businesses as there will always be demand available from individuals who love gaming and gambling and are constantly seeking such opportunities.

10. Online retailing

Given the busy lifestyles of the Japanese, setting up an online retail store is a good and lucrative choice along with physical stores. Boasting a large consumer market, the country presents unlimited opportunities for your retail business. Additionally, you could stuff your online store with a wide range of quality goods at very competitive prices. Another advantage of setting up an online retail business is that you are not required to pay rental fees.

11. Business consulting

As more foreigners are cognizant of the huge business prospects in Japan, the number of new businesses by foreigners is rapidly increasing. However, overseas investors are facing challenges of adapting to Japan’s business climate and connecting well with customers. As a business consultant, you can help these businesses attain their goals swiftly by providing them advice on how to pull in more customers, boost sales and thrive amid tough competition.

12. Event Planning Business

It is one of the small scale businesses in Japan that you could engage in if you specialise in managing events. This includes coordinating the wedding elements and making arrangements at parties. Prior to starting an event planning business, you should learn about the event management industry and aim to set yourself apart from your competitors. 

13. Automated vending

With the highest density of vending machines worldwide, Japan has approximately 1 vending machine per every 23 people, according to the Japan Vending Machine Manufacturers Association. Vending machines not only sell food and drink products, but they also offer a wide range of products such as books, shoes, clothes and perfume. Vending machine business is popular among foreigners as it requires minimal supervision. You have to ensure that the machines are constantly filled with products and are installed in places with high traffic.

Conclusion

Japan company registration is hassle-free if you are familiar with the entire incorporation process. Tetra Consultants strives to provide our clients with a seamless experience when setting up a company in Japan. Our team of experts will ensure that your Japan company can be operationally ready as soon as possible.

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