This roadmap was written by AI for a fictional sample customer and reviewed by a human.

Japan Market Entry Roadmap: Tokyo Sales Office

Prepared for: Berlin-based B2B SaaS GmbH (inventory analytics for mid-size retailers). Sample customer, fictional. Research date: 28 October 2026. Rules and fees change, so check every item against the linked official page before you act.

1. Summary

2. Assumptions

What we understood from your input - Parent: German GmbH with 22 employees. Product: B2B SaaS (inventory analytics) sold to mid-size retailers. - Goal: a Tokyo sales office and the first Japanese customers in 2027. - People: 1 German sales lead relocating to Tokyo, plus 2 local salespeople. - Budget: EUR 250,000 for the first 12 months. - No physical goods. The service is delivered online.

What we need you to confirm (to confirm) | # | Question | Why it matters | |---|---|---| | 1 | Has the sales lead worked for the GmbH for at least the past year, and in what role? | The Intra-company Transferee application needs a document covering duties, position and pay for the year before the transfer (ISA) | | 2 | Who will be the legal representative in Japan? Will the sales lead manage the entity? | If the sales lead is the manager, the "Business Manager" status (¥30M capital etc.) may apply instead | | 3 | Will Japanese customers sign with the GmbH or with the Japanese entity? | This changes the consumption tax treatment (Section 5) | | 4 | Does the product process personal data of retailers' customers or staff? How much? | Affects APPI obligations and possibly FEFTA prior notification | | 5 | Where is customer data hosted (EU, Japan, other)? | Cross-border data transfer rules | | 6 | Group's taxable sales level and capital plan for the Japanese entity | Affects the consumption tax exemption in the first years | | 7 | Do the local hires need Japanese and English? Any target salaries? | Budget fit |

3. Choosing the business form

Representative office Branch office Subsidiary (KK / GK)
Can sign sales contracts? No. Limited to market research, information gathering, advertising Yes Yes
Registration Not required Required Required
Legal personality None None. The GmbH is liable for all branch debts Separate legal entity. Parent's liability limited to its investment
Minimum capital n/a None ¥1 or more
Resident representative n/a At least one representative resident in Japan is required Non-resident representative allowed
Bank account / lease in own name Generally not Yes Yes
Setup time (JETRO) — About 1 month after details are fixed About 2 months after details are fixed
Setup cost (JETRO estimate) — About ¥420,000 About ¥610,000

Source: JETRO: Comparison of types of business operation, JETRO Cost Estimation

KK or GK? The registration license tax is 0.7% of capital, with a minimum of ¥150,000 for a KK and ¥60,000 for a GK (NTA No.7191). Japanese buyers usually see the KK as the more familiar form, but whether it helps your sales in practice is to confirm. Discuss this with a judicial scrivener or lawyer.

Recommended: a subsidiary (KK or GK) 1. You need to sell, so a representative office is ruled out. 2. A branch requires a resident representative. The sales lead would be the obvious choice, which raises the question of whether they need the "Business Manager" status (to confirm with an immigration specialist). A subsidiary can have a non-resident representative director. The sales lead can then come as a regular employee. 3. A subsidiary limits the GmbH's liability and files its own tax return (JETRO). 4. It can issue Japanese qualified invoices and sign contracts as a local company. Japanese retailers may prefer that (to confirm with your target customers).

Alternative, Phase 0: While the entity is being set up, the GmbH can sign the first Japanese customers directly from Germany. See the consumption tax notes in Section 5.

4. Steps in order

# What to do Where Duration Cost Official source
1 Free consultation on entity choice, visa, tax and labor. Ask about the free temporary office (up to 50 business days) JETRO Invest Japan Business Support Center (IBSC), Tokyo Start now Free JETRO's Support
2 Free bilingual consultation (visas, banking, office space, introductions) Business Development Center TOKYO (Tokyo Metropolitan Government) In parallel Free BDC Tokyo, Free Consulting
3 Decide entity details: name, business purposes, capital, representative director, fiscal year. Choose the Tokyo office address (a physical office is also needed for visa purposes) Internal, with a judicial scrivener or lawyer 2–4 weeks (estimate) Professional fees. JETRO model: about $1,885 for KK registration JETRO Cost Estimation
4 FEFTA check. Do the business purposes include a designated sector? Software and information services that handle large volumes of personal data can be designated. If so, file a prior notification within 6 months before the investment, through a Japan-resident agent. If not, a post-investment report may apply Bank of Japan (to the Minister of Finance and the competent minister) Prior notification: waiting period to confirm JETRO model: about $628 professional fee BOJ FEFTA reporting, MOF prior notification outline
5 Notarize the articles (KK only), pay in capital, file the incorporation registration Notary office; Legal Affairs Bureau JETRO: about 2 months in total for a subsidiary Registration tax: KK 0.7% of capital, minimum ¥150,000; GK minimum ¥60,000 NTA No.7191
6 Open a corporate bank account Japanese bank to confirm (often a hurdle, see Section 9) — —
7 Tax notifications: corporate establishment notification within 2 months of incorporation. Payroll office notification within 1 month of setting up the payroll office. Blue-return application by the earlier of 3 months after incorporation or the end of the first fiscal year (the day before) Tax office for the registered address (plus Tokyo metropolitan / ward filings, to confirm) See deadlines Free NTA No.5100
8 Consumption tax: decide on qualified invoice registration and file the relevant notifications (see Section 5) Tax office Processing time to confirm Free NTA Invoice System (EN), NTA No.6503
9 Visa for the sales lead: the Japanese entity applies for a Certificate of Eligibility under "Intra-company Transferee", then a visa at the Japanese mission in Germany Regional Immigration Services Bureau (Tokyo) to confirm Application fees: see the ISA fee table ISA Intra-company Transferee, ISA fees
10 Social insurance: new-enrollment notification for health insurance and employees' pension within 5 days (corporations must enroll) Japan Pension Service 5-day deadline Free (premiums apply) JPS new enrollment
11 Labor insurance: insurance relationship notification within 10 days. Employment insurance office notification within 10 days, at Hello Work Labour Standards Inspection Office; Hello Work 10-day deadlines Free (premiums apply) MHLW labor insurance, Hello Work Tokyo Q&A
12 Sales lead's pension: GmbH applies for a Certificate of Coverage in Germany (exemption up to 60 months) German social security institution / Japan Pension Service to confirm — JPS: Japan–Germany notes
13 Hire 2 local salespeople. Give written employment terms. Enroll them in social and labor insurance Tokyo entity Recruiting time to confirm Salaries to confirm (see steps 10–11)
14 Data protection setup: APPI compliance, including transfers between Japan and the EU Internal + Personal Information Protection Commission guidance Before the first contract — PPC guideline (offshore transfer)

5. Permits and filings for this business

Business license: We found no requirement for a business license to sell SaaS or analytics in general. Still, check the points below.

Topic What we found Status
Telecommunications Business Act MIC's guidance says that providing application software online, by building it on the cloud or installing it on servers, is a telecom business that does not need registration or notification. Registration or notification is needed if you relay other people's communications without changing their content, for example messaging between users Check your product's features against the MIC Entry Manual (supplement) and the MIC procedures page. to confirm
FEFTA (foreign investment) Setting up a subsidiary or branch is inward direct investment. If the business purposes include a designated sector, prior notification is required. Software services are limited to defined cases, such as those handling large volumes of personal data BOJ, MOF. to confirm
APPI (personal information) The PPC has designated the EU and UK as having equivalent protection systems. This makes Japan↔EU transfers easier, but supplementary rules apply to data received from the EU. Foreign operators that handle personal information of people in Japan can face PPC reporting orders and on-site inspections PPC offshore guideline, PPC Supplementary Rules, APPI overview (EN)

Consumption tax (JCT) for SaaS - Standard rate: 10% (7.8% national + 2.2% local) (NTA No.6303). - When the GmbH sells directly from Germany (Phase 0): Electronic services from abroad to Japanese customers are taxed as domestic transactions. For B2B electronic services (services normally limited to businesses by their nature or terms), the Japanese customer files and pays the tax under the reverse charge. The foreign provider must tell the customer in advance that the reverse charge applies. Customers whose taxable sales ratio is 95% or more, or who use the simplified method, are treated for now as having no such purchase (NTA No.6118, NTA cross-border page). - When the Japanese subsidiary sells: This is an ordinary domestic sale. The subsidiary charges JCT and files returns. - A new company with capital of ¥10 million or more is not exempt in its first two years. - A company with capital under ¥10M can also lose the exemption if it is a "specified new corporation", which involves a test of over ¥500M in sales by the controlling party. - A company registered as a qualified invoice issuer is taxable whatever its sales (NTA No.6503). - Japanese B2B buyers usually want qualified invoices so they can claim input tax credit. Whether to register from day one is a decision for a Japanese tax accountant (税理士). - If the subsidiary resells the GmbH's service, also check transfer pricing and the intra-group fee flow (to confirm, with a tax accountant).

6. Moving people (status of residence)

⚠️ This is an overview only. Always confirm with a gyoseishoshi (administrative scrivener) specialising in immigration or with an immigration lawyer before you decide on the structure or the job title.

Option Fits when Key points (official)
Intra-company Transferee (recommended to check first) The sales lead is transferred for a fixed period from the GmbH to its Japanese office and does work in the "Engineer/Specialist in Humanities/International Services" category Needs a document from the foreign office covering duties, position and pay for the year before the transfer. Periods of stay: 5 years, 3 years, 1 year or 3 months. Notify ISA within 14 days if the organisation's name or location changes (ISA)
Engineer / Specialist in Humanities / International Services The sales lead is hired directly by the Japanese entity, for example if they do not meet the transferee conditions Requirements: to confirm with ISA or a specialist
Business Manager The sales lead runs or manages the Japanese entity Since 16 Oct 2025: ¥30M or more in capital; at least 1 full-time employee who is Japanese, a permanent resident or holds a similar status (most work-visa holders do not count); applicant or employee with Japanese at around B2 / JLPT N2 level; a management or relevant degree or 3+ years of management experience. From 15 Apr 2026, an additional declaration is required for Category 3/4 applicants (ISA revision page, ISA Business Manager)

Family members: dependent status and conditions are to confirm. Social security: Under the Japan–Germany agreement, a detached worker can be exempt from Japanese pension coverage for up to 60 months with a Certificate of Coverage. Extensions of up to 36 months are possible in certain cases. The JPS page covers pensions only, so health insurance treatment is to confirm (JPS). Personal taxes in Japan and Germany for the sales lead: consult a tax adviser in each country (to confirm).

7. Public support and funding

Support What it offers Fit for you Source
JETRO IBSC (Tokyo and 5 other cities) Free consultations on incorporation, visas, tax, labor and law; cost estimates; free temporary office for up to 50 business days; meeting rooms High. Start here JETRO's Support
Business Development Center TOKYO (TMG) Free bilingual consulting, help settling expatriates and families, support with visas, banking, office space and client introductions High BDC Tokyo, Free Consulting Service
Tokyo subsidies for foreign companies The programs we found target financial firms, green finance, GX (green transformation) and deep tech (e.g. FY2026 Deep Tech subsidy) Probably not a fit for inventory analytics SaaS. Check with BDC Tokyo whether any program applies (to confirm) Invest Tokyo, GX support, Deep Tech FY2026 guidelines
Japanese public loans for a new foreign-owned subsidiary — to confirm. We did not confirm any program —
German public support (e.g. export promotion) — to confirm. Not researched in this report —

Where to find specialists (no specific firms recommended): Ask JETRO IBSC and BDC Tokyo. Both offer free expert consultations and can explain how to find: - a judicial scrivener (司法書士) for registration - a gyoseishoshi (行政書士) or immigration lawyer for visas - a 税理士 for tax - a 社会保険労務士 for social insurance and payroll

8. Timeline and cost estimate

Timeline (assumes kickoff in Nov 2026; everything after incorporation is to confirm) | Period | Milestone | |---|---| | Nov 2026 | JETRO / BDC Tokyo consultations. Answer the open questions in Section 2. Choose advisers | | Dec 2026 | FEFTA check (and prior notification if needed). Choose the office. Decide entity details | | Jan–Feb 2027 | Incorporation (JETRO: about 2 months). Bank account. Tax, social and labor insurance filings | | Feb–Apr 2027 | Certificate of Eligibility and visa for the sales lead (processing time to confirm). Recruit 2 local staff | | Q2 2027 | Office operating. First Japanese contracts (possibly earlier through the GmbH under the reverse charge) |

Cost (first 12 months) | Item | Estimate | Basis | |---|---|---| | Incorporation and initial filings (KK) | About $6,200 (JETRO model, at 1 USD = ¥159.19) | JETRO | | Registration license tax | KK: 0.7% of capital, minimum ¥150,000 / GK: minimum ¥60,000 | NTA No.7191 | | Total subsidiary setup | About ¥610,000 | JETRO | | Paid-in capital | Your decision. Not needed for the transferee route; ¥30M if Business Manager is used. Affects JCT exemption (≥¥10M) | ISA, NTA No.6503 | | Office (or JETRO temporary office first) | to confirm (quotes) | JETRO temporary office is free for up to 50 business days | | Salaries for 3 people plus employer social and labor insurance | to confirm (largest cost) | — | | Relocation and housing for the sales lead | to confirm | — | | Monthly advisers (tax, payroll) | to confirm (quotes) | — | | Visa application fees | See the ISA fee table | ISA fees |

Check the budget against real salary and office quotes. The setup costs themselves are small compared with EUR 250,000, but people costs will decide whether it is enough (to confirm).

9. Common pitfalls

  1. The visa depends on the job title. If the sales lead becomes "head of Japan" with management duties, the Business Manager rules may apply: ¥30M capital, a qualifying full-time employee, and Japanese at around B2 level. Agree the role definition with an immigration specialist before you register the entity.
  2. The one-year history for Intra-company Transferee. Check the sales lead's employment history at the GmbH early.
  3. FEFTA timing. If prior notification is required, you cannot invest or open the entity until the waiting period has passed. Check this before you incorporate.
  4. Short filing deadlines. Social insurance is due within 5 days. Labor and employment insurance within 10 days. Payroll office within 1 month. Corporate establishment within 2 months.
  5. Qualified invoices. Japanese corporate buyers may expect invoice registration numbers. Registering removes the small-business JCT exemption.
  6. Reverse charge wording. If the GmbH sells directly, it must show in advance that the customer is liable under the reverse charge. Update your contracts and invoices.
  7. Bank account opening can take time for new foreign-owned companies, especially with a non-resident representative (to confirm with banks and JETRO).
  8. Health insurance for the sales lead: the Japan–Germany agreement page covers pensions. Clarify health coverage.
  9. Personal data in retail analytics: check APPI, the EU supplementary rules and the possible FEFTA designation together.
  10. Subsidies: the current Tokyo foreign-company subsidies target finance, GX and deep tech. Don't build your budget on a subsidy.

10. Checklist for the first 30 days

11. Sources

Disclaimer: This document is for general information only. It is not legal, tax, immigration or accounting advice, and it does not replace advice from qualified professionals. Rules, fees and processing times change. Check every item with the relevant authority or a licensed professional (e.g. lawyer, gyoseishoshi, judicial scrivener, tax accountant, social insurance and labor consultant) before you make decisions or file anything. Items marked to be confirmed could not be verified from official sources at the time of writing.