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Going to Japan
Overseas Business Report
Expanding to Japan
For Komorebi Pay Inc. · Fintech · 25 employees · Setting up subsidiary
AI-generated draft Generated 2 min ago
✓Executive summary
✓Regulatory
✓Tax
✓Labor
✓IP & Data
Market entry
Risk register

Executive summary

AI

Setting up a Japan subsidiary is feasible within your 6–12 month horizon. Top three risks: (1) fintech licensing under the Payment Services Act before launch; (2) worker classification rigor — Japanese contractor-vs-employee tests are stricter than US norms; (3) cross-border data transfer under APPI when handling JP user data.

A consult with a JP-qualified lawyer is recommended before filing entity papers.

Risk register · top items

12 total
Critical
Operating without PSA license
Launching customer-facing payment flows pre-license invites suspension orders from the FSA.
High
Contractor misclassification
Japan's substance-over-form test reclassifies most US-style contractors as employees.
Medium
APPI cross-border transfer consent
Tightened 2022 rules require granular consent + recipient-country disclosure.