Ultimate Guide to Starting a Real Estate Business in Japan

Starting a real estate business in Japan can be a highly rewarding and profitable venture for foreign entrepreneurs and international businesses. With its blend of economic stability, investor-friendly regulations, and a mature property market, Japan presents a unique opportunity for those looking to enter or expand within Asia. 

This guide to starting a real estate business in Japan will walk you through why Japan is such an attractive destination for real estate investment, how to legally establish your business, obtain the necessary licenses, and navigate the key regulatory and operational requirements. 

You’ll also learn about the common challenges foreign business founders face, and the practical solutions that can help you overcome them. With the right preparation, cultural awareness, and local support, you can build a successful and scalable real estate enterprise in Japan’s dynamic market.

Why Start a Real Estate Business in Japan?

​​Japan’s real estate market offers a rare combination of stability, transparency, and long-term opportunities, making it one of the most attractive destinations in Asia for both domestic and international investors. The country boasts steady economic growth, supported by strong infrastructure, urban development, and a reliable workforce. Demand remains high for both residential and commercial properties, especially in urban centers like Tokyo, Osaka, and Fukuoka, and commercial real estate, including office spaces, retail units, and logistics hubs.

Japan’s legal and financial systems are among the most transparent and investor-friendly in the world, providing a secure and predictable environment for business operations. Foreign investors benefit from legal protections comparable to those of domestic buyers, including full property ownership rights. In addition, the continued availability of low interest rates makes financing accessible and cost-effective, while long-term demographic shifts, such as urban migration and a growing number of single-person households, create consistent demand and niche investment opportunities.

Owning property through your business can generate stable rental income and long-term capital appreciation. Real estate holdings strengthen your Business’s financial base, providing valuable collateral and offering strategic flexibility to rent, sell, or develop as needed. Fast-growing sectors like logistics and data centers also offer exciting opportunities due to the rise of e-commerce. As this guide to starting a real estate business in Japan outlines, these advantages make the country a prime location for long-term real estate ventures.

6 Steps to Starting a Real Estate Business in Japan

In this guide to starting a real estate business in Japan, you’ll find that the real estate industry offers tremendous potential—but it’s also heavily regulated and comes with high startup costs. Whether you’re launching a rental brokerage, property sales firm, or investment advisory, following the correct legal and procedural steps is critical. Here’s a step-by-step roadmap to help you launch your real estate business successfully.

Step 1: Choose the Right Business Structure (KK or GK)

The first decision you’ll need to make is whether to register as a Kabushiki Kaisha (KK) or a Godo Kaisha (GK).

• KK (Kabushiki Kaisha): A traditional joint-stock corporation with strong credibility among Japanese banks, clients, and high-end property partners. It requires notarization of incorporation documents and higher upfront costs, but it’s ideal for businesses aiming to scale, work with institutional clients, or secure investment.
• GK (Godo Kaisha): A simplified LLC structure. It’s faster and cheaper to set up, with fewer formalities. While it’s considered slightly less prestigious, it’s well-suited for solo founders or small teams focused on flexibility and speed.

Tip: If you’re keeping things lean or testing the waters, a GK can be a practical first step. But for long-term growth, a KK is usually the better fit.

Step 2: Secure Capital and Meet Financial Requirements for Starting a Real Estate business in Japan

Real estate is a high-barrier industry in Japan, with strict capital and security requirements. Before applying for your license, you’ll need to secure funds for office rent (¥300,000–¥700,000 upfront), incorporation fees (¥100,000–¥250,000), initial operating costs (¥500,000+ for utilities, software, etc.), and basic marketing (¥150,000–¥300,000).

Most importantly, you must provide a security guarantee, which can be done in one of two ways:

• Option 1: Business Security Deposit
  

Deposit ¥10 million per main office (¥5 million per branch) with the Legal Affairs Bureau. This is refundable but locks up a large amount of capital.

• Option 2: Join a Real Estate Guarantee Association

A more affordable route costing around ¥600,000 for the main office and ¥300,000 per branch, covering membership fees, insurance contributions, and compliance costs. This option avoids tying up large amounts of capital and is preferred by most startups.

Tip: Most startups choose the association route to keep total launch costs around ¥2–¥3.5 million, rather than tying up ¥10 million upfront.

Step 3: Draft Your Articles of Incorporation

Once you’ve selected a business structure, the next step is drafting your Articles of Incorporation—the legal foundation of your business. These must be written in Japanese and include:

• Business name
• Business purpose (must clearly reference real estate activities)
• Office address (a physical address—not a virtual office)
• Initial capital
• Fiscal year
• Shareholder and officer details (names, roles, and shareholding percentages)

For KKs, your Articles must be notarized by a public notary before submission. GKs do not require notarization.

You will also need to:

• Prepare and register a business seal (inkan)
• Assign a representative director (KK) or managing member (GK)
• Decide whether the business will be governed by individual members or a board

Note: If you plan to join a real estate guarantee association, be sure your business purpose statement includes brokerage activities—this is a common reason applications are rejected.

Step 4: Secure a Physical Office

To operate legally as a real estate business in Japan, you must have a dedicated, physical office that meets strict regulatory requirements—virtual, co-working, or shared spaces are not permitted.

Your office must include:

• A separate entrance (not shared with a residence)
• A fixed landline (mobile numbers aren’t accepted)
• Visible signage with your business name
• A desk and workspace for administrative tasks
• A meeting area for client consultations
• Accessibility for inspections by authorities

If using a home office, it must be clearly divided from your living space—with its own entrance, signage, and phone line.

Tip: Most founders rent a small commercial office to simplify compliance. Expect upfront costs of around ¥300,000–¥700,000, including first month’s rent, deposit, and setup.

Step 5: Deposit Your Capital

Before you can formally register your business, you must prove that your starting capital has been fully deposited.

Here’s how:

1. Open a personal bank account in the name of one of the business founders or directors (corporate accounts come after registration).
2. Deposit the full amount of your stated capital.
3. Print a bank statement or official transaction record as proof.
4. Include this in your incorporation documents as evidence of capital payment.

There is no legal minimum capital for starting a KK or GK, but in practice, real estate businesses require at least ¥5–6 million to meet licensing and operating demands. If you need a business manager visa ¥5 million is mandatory.

Step 6: Register Your Business

Now you’re ready to complete your official registration at the Legal Affairs Bureau.

You will submit:

• Notarized Articles of Incorporation (for KK)
• Capital deposit proof
• Consent forms for directors or managers
• Business seal registration form
• Incorporation application forms

Upon successful submission and review, you’ll receive:

• Your Certificate of Incorporation

These are mandatory for:

• Opening a corporate bank account
• Applying for your Real Estate Brokerage License (Takken License)
• Signing contracts and leasing agreements

Processing time: Typically 7–14 business days, depending on the region and accuracy of documents.

This entire process is a core part of what this guide to starting a real estate business in Japan aims to simplify for new entrepreneurs.

Obtaining Your Real Estate Brokerage License (Takken License)

One of the most important legal requirements covered in this guide to starting a real estate business in Japan is obtaining your Real Estate Brokerage License, known as the Takken License (宅建業免許). Without it, you cannot legally operate a real estate business in the country.

License Types:

• Prefectural License – for businesses operating within one prefecture
• National License – for businesses operating across multiple prefectures, issued by the MLIT

Requirements:

• Licensed Specialist (Takken-shi):
  You must employ at least one full-time Takken-shi. If you’re not licensed, you’ll need to hire someone who is.
• Compliant Office:
  A physical office is required. It must have a separate entrance, fixed phone line, visible signage, and client meeting space. Virtual or shared offices are not allowed.

Financial Guarantee:
Either deposit ¥1 million per office with the Legal Affairs Bureau, or join a guaranty association (costing around ¥500,000–¥800,000 upfront).Application Process

Submit your application to the prefectural office or MLIT, including:

National License – for businesses operating across multiple prefectures, issued by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), which oversees real estate licensing and regulation in Japan.

• Business registration certificate
• Office lease and photos
• Takken-shi credentials
• Financial guarantee documents
• Director ID and Business seal

Fees & Timing:

• Application fee: ¥33,000–¥40,000
• Processing time: 4–6 weeks
• Note: A site inspection may be conducted.

Startup Cost Table – Real Estate Business in Japan

Category	Item	Estimated Cost (jpy)	Notes
Business Incorporation	Legal registration fees (KK or GK)	¥100,000 – ¥250,000	Includes filing, seal registration, notarization (KK only)
	Drafting Articles of Incorporation	¥0 – ¥100,000	Cost varies if you use a lawyer or service
	Capital Deposit	¥5,000,000 – ¥6,000,000	Required if applying for Business Manager Visa
	Accountant / Legal Setup Support (optional)	¥50,000 – ¥150,000	For startup services or professional help
Office Setup	Commercial office rental (initial deposit + rent)	¥300,000 – ¥700,000	1–3 months’ rent upfront
	Internet + Utilities Setup	¥10,000 – ¥20,000	Initial setup + first month
	Signage, furniture, equipment	¥50,000 – ¥150,000	Basic furnishing and phone line
License Requirements (Takken License)	Real estate guaranty association membership	¥600,000 – ¥800,000	More affordable than ¥10M direct deposit
	Application fee	¥33,000 – ¥40,000	Government filing fee
	Site inspection prep / legal translation (optional)	¥0 – ¥100,000	Optional but recommended for accuracy
Visa & Immigration	Business Manager Visa (incl. documentation help)	¥50,000 – ¥200,000	If using an immigration specialist
	Startup Visa support (city-specific programs)	¥0 – ¥100,000	Often subsidized or free, depends on city
Post-Incorporation Obligations	Yearly accountant fees (ongoing)	¥100,000 – ¥300,000/year	Tax filings, payroll, VAT, etc.
	Labor & insurance consultant (optional)	¥20,000 – ¥50,000/month	Covers health, pension, labor filings
	Employment Insurance registration	Free	Mandatory once hiring employees
	Pension and health insurance employer contribution	15% of gross salary	Mandatory for employees or if you pay yourself a salary

Estimated Total Initial Setup Cost

Scenario	Estimated Total (JPY)
Lean GK Setup (with Startup Visa)	¥2,000,000 – ¥3,500,000
Full KK Setup + Takken License + Visa	¥6,500,000 – ¥9,000,000+

Post-Incorporation Obligations

These obligations are critical to staying compliant after you’ve followed the steps in this guide to starting a real estate business in Japan.

After incorporation and licensing, your business must complete several registrations and meet ongoing compliance requirements with key government agencies. These include:

Tax Office:

Submit your corporate registration, tax payment notifications, and consumption tax filings. Registration itself is free, but you’ll be subject to:

Corporate income tax: Approximately 30% combined national and local rate.

Consumption tax (VAT): 10%, applicable if your business earns over ¥10 million annually (not required for your first two fiscal years unless you opt in).Accounting and tax filing support: Expect to pay ¥100,000–¥300,000/year for a small-business accountant in Japan.

Pension Office:

Required if you hire employees or pay yourself a salary. You must enroll in the Employees’ Pension Insurance and Health Insurance programs.

Combined employer contribution: About 15% of each employee’s gross salary (and the employee contributes another ~15%).

No registration fee, but failure to register within deadlines can lead to back payments and penalties.

Labor Standards Inspection Office:

Register your employment rules and workplace details. No fee for registration, but businesses must comply with workplace standards (e.g., contracts, overtime policies).

Optional: Labor consultant support costs ¥10,000–¥30,000/month, depending on services.

Hello Work (Employment Office):

Required for Employment Insurance enrollment. Must be completed within 5 days of hiring your first employee.

Employer contribution: Around 0.6% of each employee’s salary.

Registration is free, but late filings incur penalties.

Additional Costs:

Utilities such as internet, electricity, phone, and office rental may require deposits or guarantors.

• Internet setup: ¥5,000–¥10,000 (plus monthly fee ~¥5,000).
• Co-working space: ¥30,000–¥80,000/month depending on city and location.
• Office deposit/guarantee: Often 1–3 months’ rent upfront, unless you choose a co-working space, which simplifies this process.

Hiring an accountant or social insurance/labor consultant early can save time and avoid costly compliance errors. Many firms offer bundled packages starting at ¥20,000–¥50,000/month for startups.

4 Special Considerations for Foreign Entrepreneurs in Japan

Business Manager Visa

To legally operate in Japan, you’ll need a visa. The Business Manager Visa is the most common, requiring a physical office, a viable business plan, and either ¥5 million in capital or two full-time employees. Some cities offer Startup Visas, which allow you to enter Japan on a short-term basis while setting up your business. These are ideal if you don’t yet meet the full requirements for the Business Manager Visa.

Special restrictions

Foreigners can own property in Japan without restriction, although special permissions may be required near military zones or for agricultural land. While this is uncommon for most business buyers, it’s important to stay informed. Acquiring property involves registering ownership and paying applicable taxes

Foreigner Issues

Opening a bank account can be challenging. Many Japanese banks are conservative and may hesitate to work with new foreign-run businesses. Your chances improve if you have a local advisor, speak some Japanese, or include a resident director. Start with more foreigner-friendly banks like Shinsei or Japan Post, and expect to build trust over time. Smart Start Japan offers services to assist with account setup and connect you with cooperative banks.

Credit limits

Credit access is limited for new businesses, and you may need to rely on personal credit cards or foreign financing until your business builds a history. International money transfers are allowed but must be properly recorded for compliance. As your business grows, a local accountant can help you with payroll, deductions, and financial planning.

Two Major Challenges in the Japanese Market

Cultural and communication barriers

Cultural and communication barriers are significant but manageable. Japan values indirect communication, patience, and relationship-building. Contracts, legal documents, and even licensing exams are conducted in Japanese. Hiring bilingual staff or learning the basics of the language helps bridge this gap. Understanding and adapting to etiquette, such as business card exchanges and negotiation styles, builds trust with clients and partners.

Competitors

The real estate sector in Japan is highly competitive, with many established firms and strong local networks. Breaking into these circles requires strategic differentiation. Focus on niche markets such as:

• Serving expats and international clients
• Offering bilingual or multilingual services
• Introducing tech-enabled solutions like virtual tours or online booking systems
• Specializing in underutilized asset classes like akiya (abandoned homes), student housing, or boutique hospitality

Position yourself as a bridge between foreign clients and the local market, using your unique perspective as an advantage.

Overcoming Challenges

Hiring bilingual and bicultural staff is one of the best ways to overcome both cultural and operational challenges. These team members can manage communications, negotiate effectively, and help you adapt your approach to Japanese norms. Even working with consultants or part-time interpreters can make a difference as you grow.

Networking is also key. Join chambers of commerce, attend industry events, and connect with professional associations. Japanese real estate often involves collaboration between agents, so building trust with competitors can lead to co-brokerage opportunities. Government programs and startup support networks, such as JETRO or the Tokyo One-Stop Business Center, offer resources and contacts that can ease your entry.

Case Studies

Case Study: CBRE Japan – A Global Leader Adapting to Local Markets

CBRE, the world’s largest commercial real estate services firm, has established a strong and lasting presence in Japan through its local entity, CBRE K.K., headquartered in Tokyo’s Marunouchi business district. The business offers a full range of services—from office and retail leasing to logistics, data centers, and investment advisory.

In 2024, CBRE completed a major renovation of its Tokyo headquarters, aligning with global sustainability and hybrid work standards (WELL certification). The Japan office is consistently ranked as the top performer in commercial investment sales, capturing nearly 50% of Japan’s CRE transaction volume in 2025.

CBRE’s success in Japan shows how a global brand can thrive by embedding itself in local culture, investing in infrastructure, and offering bilingual, tech-powered services tailored to both Japanese and international clients.

Case Study: JLL Japan – Building Bridges for International Investors

JLL (Jones Lang LaSalle), a global real estate firm operating in over 80 countries, has carved out a significant role in Japan’s commercial real estate sector. Through JLL Japan, the business provides services ranging from capital markets and leasing to hospitality, sustainability consulting, and project management.

JLL has strategically expanded its Tokyo-based capital markets and hospitality teams in recent years to meet growing demand from foreign investors entering the Japanese market. Their local presence combines global standards with deep expertise in Japanese regulatory and cultural frameworks—making them a preferred partner for cross-border transactions and multinational clients.

JLL’s approach highlights the importance of local team development, bilingual capabilities, and strategic specialization when entering Japan’s competitive and highly regulated real estate environment.

From incorporation and licensing to hiring and compliance, this guide to starting a real estate business in Japan covers each step you’ll need to launch successfully.

Conclusion

As this guide to starting a real estate business in Japan has shown, the journey is challenging but achievable. The market is stable, demand is strong, and the legal framework is clear. Incorporating a business and securing a license requires careful planning, but expert help is available. Visas, banking, and taxes can be managed with the right advisors.

To succeed, invest in local staff, adapt culturally, and find a unique niche. Whether you’re serving foreign clients, introducing new technology, or revitalizing properties, your outsider perspective can be a strength. With patience, persistence, and the right support, you can build a thriving real estate business in Japan.

Smart Start Japan is here to guide you every step of the way. From incorporation and licensing to banking and strategy, our services help foreign entrepreneurs establish successful businesses in Japan. Book a free consultation today, and let us help you turn this guide into your success story.

Book a free consultation today, and let us help you turn this guide to starting a real estate business in Japan into your success story.