How Much Does It Cost to Start a Company in Tokyo as a Foreigner?【 2025 Guide】
Tokyo has become a strategic choice for international entrepreneurs looking to break into the Asian market. With its stable legal environment, world-class infrastructure, and strong domestic economy, the city offers a launchpad for startups and subsidiaries alike. But how much does it really cost to start a business in Tokyo as a foreigner?
This comprehensive 2025 guide outlines the full financial breakdown—from incorporation and office setup to employee hiring and visas—based on real data from Japan’s official investment models.
1. Company Registration & Tax Notifications
There are two common ways for foreign businesses to enter the Japanese market: establishing a subsidiary company (Kabushiki Kaisha or KK) or opening a branch office.
The total cost for registering a subsidiary in Tokyo is around $8,600 USD, while a branch office costs approximately $6,300 USD. This includes:
Registration & license tax
Corporate seals for bank and legal use
Proxy service fees for preparing legal documents
Investment notifications to Japan’s central bank
Tax office and social insurance notifications
While branches are more affordable, a KK provides stronger credibility for banking and hiring in Japan.
2. Paid-in Capital Requirements
To obtain a Business Manager Visa—required for foreign entrepreneurs in Japan—you’ll need a paid-in capital of at least ¥5,000,000, or about $43,800 USD. Although Japan technically allows companies to be established with as little as ¥1, the visa requirement makes this capital a non-negotiable investment for long-term operations.
3. Office Setup in Tokyo
Tokyo real estate is one of the biggest startup costs for foreign founders. Office setup will run between $40,000 and $49,000 USD, including:
Temporary office rent (3 months): $0–$8,800
Standard office rent in Minato Ward (50 sq. meters): $3,400/month
Security deposit: 10 months’ rent (~$33,600)
Broker’s fee: 1 month’s rent (~$3,400)
Office furniture and equipment: ~$4,400
Although the upfront costs are high, office space in Tokyo is still more affordable than in cities like New York or San Francisco.
4. Business Visa for Foreign Entrepreneurs
Most foreign founders will need a Business Manager Visa to operate legally in Japan. The total cost to apply through a licensed immigration specialist ranges from $1,800 to $3,100 USD.
Japan has visa exemptions with several countries for short-term stays, but long-term residence requires proper documentation and business approval.
5. Hiring Local Talent
Hiring in Japan is competitive and professional recruitment agencies are commonly used. Expect to pay around $20,000 USD in headhunter fees for hiring a manager-level employee. This is roughly 35% of the candidate’s annual salary.
Tokyo offers access to a well-educated, highly disciplined workforce, especially in the service and tech sectors.
6. Housing for Foreign Founders
If you're relocating to Tokyo to run your business, initial housing costs average $8,000 USD. This includes:
Monthly rent (~41m² apartment in Bunkyo Ward): $1,400
Deposit + key money (2 months each): $5,500
Real estate agency fee: $1,400
Many landlords still require multiple months of upfront payments, though this practice is slowly changing.
Total Budget: Starting a Company in Tokyo (2025)
Category Estimated Cost (USD) Company Registration $8,600–$9,000 Paid-in Capital (Visa-compliant) $43,800 Office Setup $40,000–$49,000 Visa Application $1,800–$3,100 Hiring $20,000 Housing $8,000 Total $122,000–$133,000
Why Tokyo Is Worth the Investment
Despite the upfront costs, Tokyo remains one of the most strategically valuable locations to launch a business in Asia. It offers unmatched brand trust, a highly structured legal system, and excellent infrastructure. Compared to New York, London, or Hong Kong, Tokyo delivers relative affordability and a smoother business entry process for foreigners.
If you're planning to establish a presence in Asia—or scale your brand internationally—Tokyo is more than a smart choice; it’s a long-term growth opportunity.
Need help setting up your company in Tokyo? We can assist with business registration, office sourcing, visa support, accounting, and recruitment. Let us know how we can help you take your business global from Japan.