Starting a Business in Kutchan — A Beginner's Guide to Setup, Visas & Money

The Niseko–Kutchan area is a resort town where people gather from all over the world. That's exactly why many people consider starting a business here.

This guide lays out the basics of starting a business in Kutchan, in a way that's clear even for first-timers. The difference between sole proprietorship and setting up a company, money (funds, loans, subsidies), the permits needed for each type of business, and — essential for non-Japanese founders — residency status. It's useful for Japanese and overseas readers alike. Let's start with the big picture.

1. What it means to start a business in Kutchan — opportunity and reality

A town where the world gathers: the business opportunity

Kutchan and Niseko are among the towns in Japan where "the world feels closest."

In winter, people pour in from Australia, Asia, Europe, and beyond, drawn by the powder snow. English is used daily, and a good shop or service attracts customers regardless of nationality. Even a small shop can reach people from all over the world — an environment you rarely find in other rural towns.

In recent years, land and building prices have kept rising, a sign of just how much people, money, and business opportunity are gathering in this area.

The realities to know (seasonality, cost, staffing)

At the same time, starting a business in Kutchan comes with realities worth knowing.

The biggest is the seasonal swing. Business here surges in winter (roughly December to March), while summer (the green season) quiets down. Tourist-facing dining and retail in particular tend to see sales drop compared with the snow season, yet rent and utilities run all year. A plan to "earn in winter and get through summer" is essential.

Costs run high, too. Rents and labor costs are trending up, and even housing can reach around ¥250,000 a month for a 2LDK — on par with big cities (prices vary).

On top of that, securing staff and their housing is a challenge. Workers gather from all over the world, but housing for staff is in short supply. You need to think about hiring and housing together.

How to read this guide (for Japanese and non-Japanese alike)

Even so, with step-by-step preparation, starting a business in Kutchan is very achievable.

This guide moves through the following:

• Sole proprietorship or setting up a company
• Residency status for non-Japanese founders (the Business Manager visa)
• Money: startup funds, loans, subsidies
• Permits by business type (dining, lodging, retail, and more)
• Where to go for advice

Both Japanese and overseas residents can start a business. Non-Japanese founders need one extra layer of preparation — residency status — but taking it step by step, there's nothing to worry about. From the next section, let's go through it one piece at a time.

2. Decide first: sole proprietorship or a company?

When starting a business in Kutchan, the first thing to decide is whether to begin as a sole proprietor or set up a company. Each has its pros and cons.

Sole proprietorship: pros and cons

The simplest route is sole proprietorship.

You can start just by filing a "notification of business opening" with the tax office, at almost no cost. The accounting is simple, too. If you want to "test small first" or run things on your own, starting as a sole proprietor is a good fit.

On the other hand, social credibility (for transactions, loans, property contracts, and so on) tends to be weaker than a company's. And as profits grow, a company can sometimes be more favorable tax-wise.

Setting up a company: pros and cons

If you're aiming for a certain scale, setting up a company becomes an option.

A company's biggest advantage is credibility. Lease contracts, loans, and dealings with suppliers often go more smoothly as a company. It also tends to be more favorable on tax once profits rise, and it sets you up to "keep going."

There are mainly two company forms.

• Godo Kaisha (LLC): lower setup cost and simpler procedures. No obligation to publish financial statements. Well suited to starting small.
• Kabushiki Kaisha (stock company): higher setup cost, but stronger on credibility and ease of raising funds.

As a guide, setup costs run around ¥60,000–100,000 for an LLC and ¥180,000–240,000 for a stock company (depending on whether you use electronic or paper articles of incorporation). You can establish a company with capital of just ¥1, but setting an amount that matches your business gives more peace of mind, including for credibility.

Note that non-Japanese founders applying for the Business Manager visa often set up a company (more on that in the next section).

The rough flow of setting up a company

Once you know the flow, setting up a company isn't so daunting. Roughly, it goes like this.

• Decide the basics (company name, address, capital, business purpose)
• Draft the articles of incorporation (a stock company needs "notarization" at a notary office; an LLC does not)
• Pay in the capital
• Register at the Legal Affairs Bureau (this is where the company comes into being)
• File notifications with the tax office, the municipality, the pension office, and so on

You can handle the paperwork and registration yourself, but a judicial scrivener or tax accountant can greatly reduce the burden. If you'd rather focus on preparing the business itself, leaving it to a professional is a solid choice.

Setup costs and procedures can change with revisions to the system. For the latest costs and required documents, please check with the Legal Affairs Bureau or a professional (judicial scrivener or tax accountant).

3. For non-Japanese founders: residency status (the Business Manager visa)

To run a business in Japan as a non-Japanese national, you need an appropriate residency status. Statuses such as tourist or working holiday do not, in principle, allow you to manage a business.

How starting a business relates to residency status

Owning real estate or a company itself does not require a residency status. However, to live in Japan and "manage a business," you generally need the "Business Manager" residency status (the so-called Business Manager visa).

This visa's requirements were significantly revised in October 2025, raising the bar. Anyone aiming to obtain it from now on needs to prepare on the basis of the latest standards.

Main requirements for the Business Manager visa (after the October 2025 revision)

Under the new standards from October 16, 2025, you generally need to meet the following.

• Capital of ¥30 million or more (raised sharply from the previous ¥5 million)
• Employ at least one full-time staff member (a Japanese national, or a foreign national with a status-based residency such as Permanent Resident, Spouse of a Japanese National, or Long-Term Resident)
• The applicant or a full-time staff member must have a substantial level of Japanese ability
• Securing an independent office (combining it with your home is, in principle, not allowed)
• A business plan reviewed by a professional

Previously it was "either ¥5 million in capital or two full-time staff," but after the revision it became the stricter combined requirement of "¥30 million or more in capital AND at least one full-time staff member."

For those already residing under the old rules, a transitional measure is in place until October 16, 2028. However, renewals during this period are not automatically approved.

Residency requirements can change, and decisions can vary with individual circumstances. For the latest information, please check with the Immigration Services Agency or an administrative scrivener well-versed in immigration procedures.

If you already hold a Permanent Resident, spouse, or similar visa

On the other hand, those who already hold a residency status such as "Permanent Resident," "Spouse of a Japanese National," "Spouse of a Permanent Resident," or "Long-Term Resident" face almost no restrictions on the type of work or business.

In that case, you can start a business just like a Japanese national, without newly obtaining a Business Manager visa. If you've lived in Kutchan for a long time, or live here with family, it's worth first checking how far your current residency status lets you go.

In every case, residency status is an important foundation for your business. We recommend consulting an administrative scrivener well-versed in immigration early on.

4. Money: startup funds, loans, subsidies

The biggest worry in starting a business is money. Kutchan is also a high-cost area, so a funding plan matters especially here.

How to think about startup funds (a rough guide)

Think of startup funds in two parts: "initial costs" and "working capital."

• Initial costs: the lump-sum money at opening — deposit on the premises, interior work, equipment, fixtures.
• Working capital: the monthly money — rent, labor, supplies.

In Kutchan, rent and construction costs tend to run high, and sales drop in summer. So it's reassuring to plan from the start for enough working capital (several months' worth) to keep going even while sales are low after opening. Where your own funds fall short, it's common to make up the difference with loans or subsidies.

Startup loans (Japan Finance Corporation and others)

A common option at startup is a loan from Japan Finance Corporation, a government-affiliated financial institution.

Currently the New Business / Startup Support Fund is the mainstay, aimed at businesses within roughly seven years of founding. It can be used in principle without collateral or a guarantor, with the loan ceiling set according to use.

The formal own-funds requirement has been removed, but in practice, having no or very little of your own funds tends to be a disadvantage in screening. A convincing business plan is the key to approval.

Loans from private banks and credit unions, and guaranteed loans through a Credit Guarantee Corporation, are also options. Note that for non-Japanese founders, conditions for opening a bank account or obtaining a loan can vary with residency status and track record in Japan.

Startup support and subsidies in Kutchan and Hokkaido

Don't forget to check local support programs.

Kutchan Town offers subsidies to support new businesses and a program to support the use of vacant storefronts in shopping districts (such as partial rent subsidies). In addition, if you receive support under the national "Specified Startup Support Project" (based on the Industrial Competitiveness Enhancement Act), you may be eligible for benefits such as a reduction in the registration and license tax when setting up a company, and special credit guarantee provisions.

Hokkaido also offers subsidies to support entrepreneurship (such as those for businesses aiming to solve regional issues).

Subsidies and support programs change in content, application periods, and amounts each fiscal year. For the latest information, please check with the Kutchan Town office, the chamber of commerce, or the Hokkaido (startup support) website.

5. Permits by business type

Depending on the business, you may need a "permit" or "notification" before opening. Businesses involving food and lodging in particular have firmly set rules. Let's look at the main ones.

Dining & cafés (business permit and food hygiene manager)

To open a restaurant, café, or bar, you need a "restaurant business permit" from the public health center.

You're also required to appoint a "food hygiene manager" for each establishment. This is a qualification you can obtain by taking a course.

There are also standards for the kitchen. You'll need to meet the health center's conditions — the number of sinks, handwashing facilities, ventilation, refrigerator temperature management, and so on. Consulting the health center at the drawing stage, before starting interior work, helps avoid having to redo things later.

Lodging & minpaku (the Inns and Hotels Act vs. the Housing Accommodation Business Act)

If you're starting a guesthouse or inn, you need to comply with the laws on lodging. There are broadly two paths.

• Housing accommodation business (so-called minpaku): you can start with a "notification" to the municipality, but there's a cap — you can host guests for up to 180 days a year.
• Inns and Hotels business (such as a "simple lodging" license): this requires a "permit" from the health center and has structural and facility standards, but you can operate year-round.

If you want to "run a serious inn beyond 180 days a year," you'll need an Inns and Hotels permit. In Niseko, where earnings concentrate in the snow season, it's worth deciding which suits you based on your operating days and projected peak season. For details, the Japan Tourism Agency's minpaku portal and the Ministry of Health, Labour and Welfare's Q&A on minpaku and the Inns and Hotels Act are helpful.

Retail & services (notifications as needed)

Many retail and service businesses can start without a special permit.

However, some types do require permits or licenses. For example, selling alcohol requires a liquor sales license, and buying and selling used goods requires an antique dealer license. Rentals, tours, bodywork therapy, and the like may also require notifications depending on what you handle.

Whether your business needs a permit is best checked early in your preparations.

Whether a permit is required, and the standards, vary with the content and location of your business. Specifically, please check with the relevant public health center, your municipality's window, or a professional (such as an administrative scrivener).

6. The first step: where to go for advice

As we've seen, starting a business involves many decisions and procedures. But you don't have to shoulder it all alone. Kutchan has reliable places to turn to.

Public consultation desks (free to use)

Start with the public desks you can consult for free.

• Kutchan Town's relevant office: local advice on startup support, subsidies, vacant storefront information, and more.
• The chamber of commerce: help with business plans, management advice, and loan consultations.
• Yorozu Support Centers (Hokkaido): free consultation offices set up by the government for small businesses and founders.

These are often linked to the "Specified Startup Support Project," and receiving support can lead to benefits such as a reduced registration and license tax when setting up a company.

Leaning on professionals (administrative scrivener, tax accountant, judicial scrivener)

Relying on procedural professionals makes preparation much smoother.

• Administrative scrivener (gyosei shoshi): permit applications, and residency procedures for non-Japanese founders (the Business Manager visa).
• Tax accountant: tax, accounting, funding plans, and loan support.
• Judicial scrivener (shiho shoshi): company registration.

Residency status for non-Japanese founders, in particular, is a highly specialized field. Consulting an administrative scrivener well-versed in immigration procedures early on is reassuring.

Tips for keeping going in Kutchan (people, housing, season)

Finally, some points specific to this area for "keeping going" after you open.

• Prepare for the seasonal swing: set aside the profit from the busy winter for the summer, when foot traffic falls. In summer, building sales that don't rely solely on tourism — lunch service, local customers, pop-ups at events — helps.
• Think about people and housing together: when you hire staff, planning for their housing too makes it easier to ride out the labor shortage.
• Welcome guests in multiple languages: offering menus and guidance in multiple languages, in addition to Japanese and English, helps you reach customers from all over the world.

You can start recruiting staff and looking for shop or staff housing on Niseko Hub, too.

7. Frequently asked questions (FAQ)

Q. Can non-Japanese nationals set up a company in Kutchan? A. Setting up a company and owning real estate themselves are possible regardless of residency status. However, to live in Japan and "manage" a business, you generally need a Business Manager visa. From October 2025 the requirements became stricter, calling for capital of ¥30 million or more and at least one full-time staff member, among others. If you already hold a status such as Permanent Resident or Spouse of a Japanese National, the restrictions are fewer. Consult an administrative scrivener early.

Q. Sole proprietorship or a company — which is better? A. To test small first, a sole proprietorship is easy — you can start with just a notification of business opening. If you have credibility, tax, and scale in mind, a company suits better. Among companies, an LLC is easier on cost, while a stock company is stronger on credibility and raising funds.

Q. Can you only earn in winter in Kutchan? A. It's true that winter is the busy season. In summer (the green season) tourist numbers fall and sales tend to drop. So it's important to set aside winter profits for the summer, while building summer sales through lunch service, local customers, event pop-ups, and the like.

Q. Can I start a business without Japanese? A. Starting a business itself is possible, but there are many situations — procedures, contracts, dealings with government — where Japanese is needed. Using professionals and multilingual support helps. Note that the new Business Manager visa requirements call for the applicant or a full-time staff member to have a substantial level of Japanese.

Q. How long does it take until opening? A. It varies by business type and permits. Company setup alone takes a few weeks; including a restaurant business permit, premises, and interior work, it's safer to allow a few months. Early preparation and consultation are the key to a smooth start.

Starting a business in Kutchan is by no means easy. Even so, by taking it step by step and leaning on professionals and support desks where needed, you can give shape to your own business in this town connected to the world.

Start with what you can. Niseko Hub is cheering you on.

— Niseko Hub Editorial Team