A Step-by-Step Guide to Start a Travel Business in Japan (2025 update)

Why Start a Travel Business in Japan?

Japan’s tourism industry is at a turning point, presenting a golden opportunity for entrepreneurs looking to establish a travel business. With post-pandemic travel rebounding at an astonishing rate, Japan has seen a dramatic surge in foreign visitors driven by relaxed entry regulations, a weaker yen, and government-backed initiatives promoting inbound tourism. Beyond traditional sightseeing, modern travelers are now seeking deeper, more immersive experiences—from high-end luxury travel and sustainable ecotourism to niche cultural explorations and anime-themed adventures.

Travel Business vs Travel Agency – How do they differ? 

Before jumping in, it’s crucial to distinguish between a Travel Business and a Travel Agency, as the two operate under distinct legal frameworks.

A Licensed Travel Business is responsible for directly organizing and selling travel services, and the level of operation depends on the type of license obtained:

• Class 1 License: The most comprehensive option, allowing businesses to offer full-scale domestic and international tours, package trips, and recruitment-based travel programs.
• Class 2 License: Covers a broad range of services, including domestic and international travel, but excludes recruitment-type overseas package tours.
• Class 3 License: The most limited, focusing on arranged travel, domestic trip planning, and agent sales. This license prohibits organizing overseas, recruitment-based tours.

On the other hand, a Travel Agency acts as an intermediary, facilitating travel arrangements between customers and officially licensed travel businesses. Unlike a licensed travel business, agencies cannot independently create or sell travel packages—they must work under contract with a licensed operator.

Step 1 – Securing the Capital to Launch Your Travel Business in Japan

Financial preparation is the foundation of a successful travel business in Japan. Unlike many other industries where entry costs can be relatively low, Japan’s travel sector requires substantial capital investment due to its strict licensing regulations. 

The capital required depends on the type of Travel Business License you intend to obtain:

• Class 1 License: Requires a minimum of 70 million JPY, reflecting the higher financial risk associated with full-service travel operations, including international tour packages and recruitment-based group travel.
• Class 2 License: A more moderate 11 million JPY is necessary for businesses focusing on domestic and international travel arrangements, excluding recruitment-type tours.
• Class 3 License: The most accessible entry point at 3 million JPY, suitable for businesses specializing in domestic travel planning and agent sales.

However, the initial capital investment is not the only financial hurdle. Businesses must also submit a security deposit to guarantee financial reliability. For many, this requirement can be significantly reduced by joining an industry association, such as the Japan Association of Travel Agents (JATA) or the All Nippon Travel Agents Association (ANTA). These organizations provide credibility, networking opportunities, and regulatory support, making them valuable partners for new entrants in the industry.

 How can JATA and ANTA reduce your initial investment?

For many new travel businesses, the security deposit represents a significant upfront expense. However, a strategic cost-cutting solution exists: joining an industry association like the Japan Association of Travel Agents (JATA) or the All Nippon Travel Agents Association (ANTA).

Membership in these associations allows businesses to reduce their required deposit by 80%, offering substantial cost savings:

This cost-reduction strategy significantly lowers the financial barrier to entering the travel industry in Japan. More importantly, joining JATA or ANTA provides valuable networking opportunities, credibility in the industry, and regulatory guidance, all of which can accelerate business growth.

Step 2: Setting Up Your Office

Establishing a legal office is a non-negotiable step for launching a travel business in Japan. Unlike many industries that allow for remote or home-based operations, travel businesses must adhere to strict physical office requirements.

Whether you’re considering a traditional lease or a more flexible rental office, resources like this guide on renting an office in Japan provide valuable insights into finding a space that meets regulatory standards while keeping costs manageable.

Meet the Japanese Office Requirements

The Japanese government requires that every licensed travel business operate from a dedicated physical office. This means entrepreneurs cannot run their business from a co-working space, shared office, or home-based setup. The office must meet the following strict conditions:

• Dedicated Office Space: A formal rental agreement is required to prove ownership or long-term lease of the office premises.
• Fixed Landline Telephone: A mobile-only business is not permitted; having a dedicated landline telephone is essential for official communication and compliance with travel industry standards.
• Secure Document Storage: Client records, financial transactions, and travel contracts must be stored securely. Authorities require businesses to demonstrate proper document management to ensure customer safety and prevent fraud.

Estimated Costs for Office Setup

The cost of setting up an office varies based on location. In major cities like Tokyo, Osaka, and Kyoto, office rental prices typically range between 300,000 JPY and 1,500,000 JPY per month. The variation in cost depends on office size, location, and accessibility.

Beyond rent, additional expenses must be considered, including:

• Telephone and Internet Installation: Essential for client communication and operational efficiency.
• Office Furniture & Equipment: Desks, chairs, meeting areas, and storage solutions are necessary for both employee productivity and compliance.
• Operational Expenses: Utilities, maintenance, and administrative costs add to the overall budget.

While setting up an office in Japan requires a significant financial commitment, it plays a crucial role in building customer trust, ensuring regulatory compliance, and positioning the business as a serious industry player.

Register Your Business and Meet Legal Requirements

Registering your business in Japan is a foundational step that determines its legal structure, tax obligations, and operational framework. The process is highly structured, requiring careful planning and compliance with corporate laws and immigration regulations—especially for foreign entrepreneurs.

For a step-by-step breakdown of setting up a company in Japan, including key legal and financial considerations, check out this in-depth guide on How to Set Up a Company in Japan.

Step 3: Choosing the Right Business Structure: KK vs. GK

Before launching your travel business, you must decide on the appropriate business structure. In Japan, two primary options exist:

• Kabushiki Kaisha (KK) – Stock Company
  This is Japan’s most reputable and structured business entity, offering strong credibility among customers, investors, and business partners. It is best suited for large-scale operations and businesses seeking external investment. However, it comes with higher incorporation costs and stricter regulatory requirements.
• Goudou Kaisha (GK) – Limited Liability Company
  This is a simpler and more cost-effective option for smaller businesses or startups. A GK requires less capital and fewer formalities than a KK, making it an attractive choice for entrepreneurs looking for a leaner setup. While it provides liability protection, it does not carry the same corporate prestige as a KK, which may impact credibility in the travel industry.

The choice between KK and GK should align with your long-term vision:

• Are you aiming for rapid growth and external investment? KK is the better option.
• Do you prefer a more manageable, low-cost setup? GK may be more practical.

For a deeper understanding of incorporation procedures, requirements, and best practices, check out this detailed video guide on setting up a business in Japan.

Step 4: Register your Travel Business in Japan

Once you’ve chosen a business structure, formal registration is required. The process involves several key steps:

1. Business Name Registration – Check the availability of your chosen company name and ensure it follows legal guidelines. Names must be unique and should avoid misleading or restricted terms.
2. Drafting & Notarizing the Articles of Incorporation – This legal document outlines the company’s ownership structure, business purpose, and governance rules. It must be notarized to ensure validity.
3. Filing with the Legal Affairs Bureau – The company registration process is finalized by submitting official documentation to the Legal Affairs Bureau of Japan. This step legally recognizes your company and allows it to operate.
4. Opening a Corporate Bank Account – Once the company is registered, you’ll need to open a dedicated business bank account to handle financial transactions. Banks may require a registered address, company seal, and proof of ownership. To ensure a smooth process, follow our step-by-step guide on how to open a corporate bank account in Japan.
5. Registering for Corporate Taxes & Social Insurance – Finally, businesses must complete tax and social security registration, ensuring compliance with corporate tax laws, employment regulations, and pension contributions.

Additionally, you can refer to JETRO’s official guide for comprehensive insights on business incorporation, required permits, and regulatory compliance:

Guide to Starting a Business in Japan (JETRO – Japan External Trade Organization)

Each of these steps requires careful documentation and adherence to Japanese corporate regulations. Mistakes in registration can lead to delays or additional costs, so it’s advisable to seek professional assistance if necessary.

Visa & Residency Requirements for Foreign Entrepreneurs

For non-Japanese entrepreneurs looking to establish a travel business, obtaining the right visa and residency status is essential. The two most relevant options are:

• Business Manager Visa—Designed for foreign entrepreneurs, this visa requires proof of financial stability, a physical business location, and a clear operational plan. For additional information, read our guide on How to Get a Business Manager Visa in Japan.
• Startup Visa – Suitable for those investing in Japan, this visa provides an alternative pathway for business owners who contribute significant capital to the country’s economy. o better understand the process and requirements, you can also refer to this in-depth guide on obtaining a Startup Visa in Japan.

Step 5 – Post-Incorporation Steps: Ensuring Tax Compliance and Regulatory Filings

Launching a travel business in Japan doesn’t end with incorporation. To operate legally and avoid penalties, companies must fulfill mandatory tax filings and registrations with national and local authorities. Japan has strict corporate tax laws, and failing to comply with deadlines can result in steep penalties. Additionally, businesses hiring employees must complete labor and social insurance registrations.

If a company hires employees, it must register for labor insurance and social security programs to ensure compliance with Japan’s employment laws. Businesses must notify tax authorities at the national, prefectural, and municipal levels regarding their incorporation and tax obligations.

Mandatory Post-Incorporation Filings and Registrations

Step 6: Get Your Travel Business License Approved

Once your company is legally registered, the next critical step is obtaining a Travel Business License. In Japan, the travel industry is heavily regulated, and businesses cannot legally sell tours, arrange travel services, or book transportation without proper licensing. This process ensures consumer protection and industry compliance, but it also means that strict requirements and documentation must be met.

Application Process & Documentation

Applying for a Travel Business License in Japan requires detailed paperwork and strict compliance with regulatory guidelines. To successfully obtain approval, your business must submit:

• Business Registration Certificate – Proof that your company is officially registered.
• Financial Proof of Capital Deposit – Ensuring the company meets the minimum capital requirements for the selected license class.
• Office Lease Contract – Verification of a physical office location, as travel businesses cannot operate remotely.
• Appointment of a Certified Travel Supervisor – A legally required individual responsible for ensuring compliance with travel industry laws.

In addition to meeting these requirements, businesses must pay the application fee and allow time for license processing:

• Class 1 Travel Business License – Costs 90,000 JPY, with an approval timeline of 2–3 months.
• Class 2 & 3 Travel Business Licenses – Fees vary based on the prefecture, with an estimated processing time of 1–2 months.

Appoint a Certified Travel Supervisor

A key requirement for all travel businesses in Japan is appointing at least one full-time Certified Travel Supervisor. This position is responsible for regulatory compliance, safety oversight, and business accountability.

• The Certified Travel Supervisor must hold an official qualification, either as a General Travel Supervisor or Domestic Travel Supervisor, depending on the services offered.
• If the company employs 10 or more workers, an additional supervisor is required to maintain legal compliance.

For startups, finding a qualified supervisor can be challenging, but hiring an experienced professional or having a co-founder obtain the necessary certification can streamline the process.

Step 7 – Establish Strong Partnerships and Secure Reliable Suppliers

Launching a travel business in Japan isn’t just about obtaining licenses and setting up an office—success depends on building strong partnerships with key industry players. Whether you’re crafting luxury tours, cultural experiences, or adventure packages, having reliable suppliers is crucial for ensuring a seamless experience for your customers.

Partnering with Hotels, Airlines, and Local Vendors

One of the most valuable assets in the travel industry is access to quality accommodations, transportation, and unique experiences. To stay competitive, your business must build and maintain strong relationships with service providers in Japan, including:

• Hotels & Traditional Ryokan Inns – Partnering with well-established hotels and authentic Japanese Ryokan(traditional inns) can provide your clients with an unforgettable travel experience. Many travelers seek culturally immersive stays, so working with onsen (hot spring) resorts, temple lodgings, and boutique hotels can give your business an edge.
• Airlines & Japan Rail Pass (JR Pass) Distributors – Offering convenient domestic and international travel solutions is essential. Establishing direct contracts with airlines and JR Pass providers can allow your company to bundle transportation services into your packages, making it easier for travelers to explore Japan.
• Local Tour Operators & Experience Providers – Japan’s tourism industry thrives on curated experiences. Collaborating with local tour guides, cultural activity organizers, and adventure tourism providers (such as ski resorts, diving centers, and hiking guides) will enhance your offerings and help differentiate your services from competitors.

Building these partnerships requires negotiation and relationship management. Hotels and airlines may offer special rates, commissions, or exclusive package deals if they see value in your business. Establishing trust and reliability with vendors ensures long-term success and priority bookings for your clients.

Understanding Distribution Channels

Even with the best travel packages, your business won’t succeed without a solid distribution strategy. Japan’s travel market is highly digital, and customers rely on multiple channels when booking their trips. To maximize sales and reach a broader audience, businesses should leverage a mix of:

• Direct Bookings via Your Website – Having a well-designed, mobile-friendly website with a clear booking system is essential for direct sales. Offering discounts for direct bookings can help drive customers away from third-party platforms and toward your own services.
• Online Travel Agencies (OTAs) – Platforms like Rakuten Travel, Jalan, Klook, and GetYourGuide dominate Japan’s online travel market. Listing your services on these platforms can significantly increase visibility and attract international travelers who rely on these trusted brands for bookings.
• Affiliate Networks & Travel Platforms – Collaborating with influencers, travel bloggers, and affiliate networks can help promote your business to niche audiences. Many travelers rely on word-of-mouth and expert recommendations, so offering commission-based incentives to affiliates can drive bookings.

Need Expert Guidance to Launch Your Travel Business in Japan? 

If you’re looking for personalized assistance in setting up and scaling your travel business in Japan, our expert team is just an email away. From navigating business registration and licensing to understanding corporate taxes and compliance, we’re here to help you every step of the way.

Get in touch with us today, and let’s turn your vision into a thriving business in Japan! With the right strategy and support, you can confidently enter the Japanese market and unlock its full potential.