Best Cities in Japan to Start a Business: Top 5 Entrepreneurial Hubs in 2025 and beyond
When it comes to launching a startup in Japan, the country offers much more than just Tokyo. While the capital remains the epicenter of finance and innovation, regional cities across Japan are emerging as powerful startup hubs—each offering unique advantages for foreign entrepreneurs.
Whether you prioritize local government support, access to talent, affordability, or niche industry clusters, Japan has a city that aligns with your business goals.
Here are the top 5 cities to start a business in Japan in 2025, and why each deserves serious consideration.
1. Tokyo – The Innovation Capital of Japan
Best For: Fintech, SaaS, AI, B2B, global brand credibility
As the most populous metropolitan area in the world, Tokyo remains the top choice for foreign entrepreneurs aiming for prestige, scale, and market access.
Why Tokyo?
- Home to Japan’s largest corporations and investors
- Dense population and early tech adopters
- Presence of global startup accelerators and VCs
- English support available in Shibuya, Minato, and Chiyoda wards
Key Support Programs:
- Tokyo Metropolitan Government’s Startup Support Program
- Tokyo Innovation Base (TIB) near Tokyo Station
- Subsidies and coworking support
Startup Visa Available: Yes (Shibuya, Minato)
2. Fukuoka – The Startup City of Western Japan
Best For: Early-stage startups, lifestyle businesses, tech pilots
Fukuoka is Japan’s most foreigner-friendly startup city and has earned global attention for its low-cost, high-support ecosystem.
Why Fukuoka?
- Strong government backing through the Startup City Fukuoka initiative
- Lower cost of living and doing business than Tokyo or Osaka
- Proximity to South Korea and Southeast Asia
- Relaxed immigration and tax regulations for startups
Key Support Programs:
- Fukuoka Global Startup Center
- Free business mentoring and bilingual assistance
- Subsidized rent and coworking space
Startup Visa Available: Yes
3. Osaka – Japan’s Commercial Powerhouse
Best For: E-commerce, MedTech, retail innovation, food & beverage
Osaka offers a large, loyal consumer base and is known for its practical, business-oriented culture.
Why Osaka?
- High urban density with lower costs than Tokyo
- Japan’s second-largest economy
- Emerging hub for healthtech and logistics startups
- Access to Kansai universities and research centers
Key Support Programs:
- Osaka Innovation Hub
- Startup Boot Camps and Demo Days
- MedTech Startup Acceleration Program
Startup Visa Available: Yes
4. Kyoto – The Heritage-Tech Startup City
Best For: Deep tech, arts & culture startups, social innovation
Kyoto blends ancient culture with academic excellence. It’s home to many deep-tech, sustainability, and design-focused startups.
Why Kyoto?
- Proximity to top universities (Kyoto University, Ritsumeikan)
- Active design and gaming startup scene
- Incentives for sustainable business practices
- Tourism and cultural business synergy
Key Support Programs:
- Kyoto Startup Summer School
- Local innovation grants and cultural support
- Access to global design partners
Startup Visa Available: Yes
5. Sapporo – Japan’s Northern Innovation Frontier
Best For: AI, data science, climate tech, tourism-tech
Sapporo is quickly becoming known as a center for AI, data analytics, and climate resilience technologies, fueled by its local universities and innovation labs.
Why Sapporo?
- Clean air, outdoor lifestyle, and growing talent pool
- Access to Hokkaido University’s research community
- Focus on tourism, agritech, and smart city projects
- Government eager to attract remote tech workers
Key Support Programs:
- Sapporo Incubation Hub DRIVE
- Smart City Testbed initiatives
- Innovation matchmaking events
Startup Visa Available: Yes
How to Choose the Right City for Your Startup
Consider the following when deciding:
- Industry focus: Tokyo for SaaS, Kyoto for design, Osaka for e-commerce
- Budget: Fukuoka and Sapporo are more affordable than Tokyo
- Language & support: Some cities offer more English support and streamlined paperwork
- Work-life balance: Smaller cities offer better quality of life
Each city has distinct advantages depending on your vision, funding stage, and long-term goals.
JapanFlex.com Helps You Set Up in Any City
No matter where you want to start your business in Japan, JapanFlex.com helps foreign entrepreneurs register their companies, secure virtual offices, and navigate visa and compliance challenges.
Our services include:
- Startup and Business Manager Visa support
- Virtual addresses in Tokyo, Fukuoka, Osaka, and more
- Company registration (GK or KK)
- Bilingual tax and legal assistance
Final Thoughts: Opportunity is Everywhere
From the towering skyscrapers of Tokyo to the laid-back streets of Fukuoka and the creative labs of Kyoto, Japan offers a range of environments for every kind of entrepreneur.
2025 is the perfect year to take advantage of local government support and launch your startup with confidence.
Start Your Business in the Right City with JapanFlex.com
Visit https://japanflex.com/ to explore how we can help you launch your business in any of Japan’s top startup cities.
Let’s build your dream company—where it fits best.
