Business Licensing in Japan: What You Need Before Launch

Business Licensing in Japan

If you're a CEO planning to launch operations in Japan, obtaining the right business licenses is essential. Japan maintains high regulatory standards to protect consumers and ensure fair market practices. Failing to secure required licenses can result in delays, fines, or forced closures. This article outlines the key licensing requirements for foreign companies entering the Japanese market.

Do All Businesses Need a License?

Not all businesses in Japan require a special license to operate. However, specific industries are heavily regulated and demand official approval before launch. Understanding whether your business falls under these categories is the first step.

Industries That Require Licensing

Below are common sectors where licenses are mandatory:

• Food & Beverage: Restaurants, cafes, food import/export

• Finance & Insurance: Payment processing, lending, crypto assets

• Real Estate: Brokerage, property management

• Healthcare & Pharmaceuticals: Clinics, drug sales, cosmetic manufacturing

• Education & Childcare: Schools, daycare centers

• Transportation: Taxi, delivery, logistics

Each industry has a unique application process, documentation needs, and governing authority.

General Licensing Process

While requirements vary by sector, the typical steps include:

1. Establishing a Legal Entity in Japan (KK or GK)

2. Securing a Physical Office or Facility

3. Submitting an Application to the relevant ministry or agency

4. Undergoing Inspections or Background Checks

5. Receiving Approval or Business Permit

   
   

Documentation May Include:

• Business plan and financial projections

• Office lease or proof of premises

• Certificates of incorporation

• Identity documents for directors or owners

• Qualification or training records (for certain sectors)

  
  

Timeframe and Costs

Licensing can take 2 weeks to 3 months depending on the complexity. Costs vary widely but may range from ¥30,000 to ¥500,000+, excluding legal/consulting fees.

Common Pitfalls to Avoid

• Launching operations before license approval

• Underestimating required documentation

• Failing facility inspections due to improper setup

  
  

Pro Tip: Work with a Regulatory Consultant

Japan's regulatory landscape can be difficult to navigate without local expertise. A bilingual consultant can help:

• Identify required licenses

• Prepare accurate applications

• Liaise with authorities and handle inspections

  
  

Get Licensed and Launch With Confidence

Whether you're opening a restaurant in Tokyo or starting a fintech service, proper licensing is non-negotiable. We help foreign CEOs identify, apply for, and obtain the right business permits with confidence and efficiency.

Unsure what license you need in Japan? Let us assess your business model.