Establishing a company in Japan is an excellent way to penetrate the world's 2nd largest economy in terms of output. Sophisticated hi-tech manufacturing, a thoroughly modern communications infrastructure, and a skilled, motivated workforce combine to create a robust economy. Furthermore, Tokyo is one of the world's leading financial centres, meaning that businesses in Japan access a wide variety of financial products and services. The following is an overview of the Japanese economy and business environment, and its impact on investors establishing a company in Japan.

Establishing a company in Japan is achieved through the Legal Affairs Bureau of the Ministry of Justice. While many possible legal entities are permitted in Japan, the limited liability company is the preferred vehicle for most entrepreneurs. The fee to register a Japanese limited liability company is US$5,570.

When establishing a company in Japan, at least one director is required, who need not be Japan-resident. At least one shareholder must be appointed, local or international, corporate or individual. There must be one individual local, Japan-resident company representative, and office space must be leased in Japan with a tenancy agreement submitted before incorporation.

Corporate and private banking services are widely available to investors establishing a company in Japan. The Bank of Japan (BoJ) maintains the financial system's stability and issues bank licenses. More than 64 regional banks and 67 foreign banks operate under licenses issued by the BoJ, and account holders can expect high customer service standards. However, most transactions are performed in Japanese.

Japan is ranked a healthy 15th among all countries in the World Bank's 2010 Doing Business Survey. However, although it ranks well in the survey for investor protection, ease of obtaining credit and international trading, it fares just 44th in the world for the ease of establishing a company in Japan.