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Exceptional Convenience and Urban Infrastructure,
Advantageous Business Costs

Located in the heart of Japan, Osaka City features an extensive transportation network offering convenient access by land, sea, or air.
The city’s robust transport infrastructure acts as a hub connecting not only to Japan’s major metropolises but also to cities throughout Asia and the world, making it an optimal location for tourism, logistics, and setting up a company.

Global Network

  Passenger Freight Total
Number of airlines in operation 68 16 78
Number of countries (regions) served 20 20 24
Number of cities served 68 43 84
Number of flights 1,115 145 1,260

Opened in 1994, Kansai International Airport is a world-class international airport operating 24 hours a day and positioned as Japan's western gateway. In the summer of 2016, a new record was set with 1,260 flights per week*1 to 84 cities around the world. Offering an extensive international network, Kansai International Airport is one of the major pillars supporting Japanese industry and international distribution.

 

In addition, Kansai’s Osaka and Kobe ports – together ‘Hanshin Port’ – have been designated as strategic international container ports, alongside Tokyo and Yokohama’s Keihin Port. Out of Hanshin Port’s total foreign container count of 4.22 million TEU*2, Osaka Port alone handles approximately half at 2.17 million TEU*2.

*1 During the peak of Kansai Airport’s 2016 Summer Season
*2 Ministry of Land, Infrastructure and Transport 2014


Domestic Network

Domestic Network

Domestic Flights

   
Number of airlines in operation 9
Number of cities served 30
Number of flights 255/day

With regard to the domestic transportation, Osaka has a well-developed transport network of airlines, railways and roads and highways that eventually provide convenient access to each area of Kansai and all major cities throughout Japan.. Kansai International Airport (KIX) and Osaka International Airport (ITM) together offer approximately 255 flights a day to 30 domestic destinations*3).
Osaka’s densely-concentrated road and railway network is one of the best in Japan along with Tokyo, and extensive land transportation such as Shinkansen lines and expressways bring extremely convenient circumstances to business and everyday life.

*3) Kansai Airport 2016 summer peak season (July)


Advantageous Business Costs

Osaka City has an exceptional social infrastructure for supporting economic activities and boasts an economic capacity comparable to the fast-growing economies of Vietnam and Bangladesh in terms of GDP.*4) While providing an environment abounding in business opportunities, Osaka also offers an overwhelming advantage in terms of cost compared to Tokyo.
Keeping down fixed costs such as rent, land prices and labor costs contributes greatly to a business's continued success. Businesses can save approximately 30% on office rent and 15% on labor costs (average wages) in Osaka as compared to Tokyo.

*4) Osaka City Government Economic Strategy Bureau 'The Outline of Osaka Economy' GDP by country (nominal, 2014).

  • *1 Ministry of Land, Infrastructure and Transport"Prefectural Land Price Survey 2016"2. Average prices by prefecture/purpose of use"
  • *2 Sanko Estate Co., Ltd. "Comparison of office rental rates in major cities across Japan (based on rates from August 31, 2016)"
  • *3 CBRE, Inc. "Japan Industrial Market View 2014, 3rd Quarter"
  • *4 Statistics Bureau of the Ministry of Internal Affairs and Communications "Retail Price Survey Annual Report 2015 Item Rent (Private Rental Houses)"
  • *5 Ministry of Health, Labor and Welfare "2015 Basic Survey on Wage Structure Wages by Prefecture
*Simulation for a foreign enterprise establishing a corporation (Japanese subsidiary) or a branch office in Japan

As mentioned above, Osaka offers a variety of advantageous conditions to businesses in terms of cost. The chart below shows a simulation of the initial costs for a foreign company to establish a business base in Osaka. As can be seen, compared toTokyo it is possible to set up a business base in Osaka at roughly 70% to 80% of the cost.

Simulation Settings
  • ・An initial setup of a 2-person office for establishing the company’s Japan base.
  • ・Establishment of a corporation or branch and leasing of office space after setting up the temporary office.
  • ・5 million yen or more in capital as part of acquiring a ‘Business Manager’ status of residence in cases where the representative is a non-resident of Japan.

・Actual rental rates and fees for applications and filings by proxy may vary. The following sample is for reference only.

  • Initial preparations

    Monthly rental fee for temporary office (3 months)   (Rental rates for temporary offices may vary greatly depending on the institution or group, etc. using the space.)

    In the case of Osaka City, BSO offices can be used for up to 6 months free of charge.

    Click here for details


  • Human resources

    Manager recruitment fee
    *Based on using a recruitment company to hire a Japanese manager (service fee of 35% of the employee’s annual salary)


  • Office setup

    Office rent (monthly), Security Money, Deposit, brokerage fee
    Equipment purchases (OA equipment, office furniture, etc.) property insurance (1 year)


  • Housing setup

    Housing rent (monthly)
    Security deposit/key money (approximately 2 months’ rent each) brokerage fee (1 month’s rent)


  • Visa acquisition

    Issuance of Certificate of Eligibility by proxy
    Visa application (general entry visa)

    Those using the O-BIC Support Program for Foreign Companies may receive a subsidy of up to 150,000 yen to be used on registration expenses and fees for acquiring Status of Residence.

    Click here for more information


  • Company establishment and filings and registrations

    Expenses for business registration
    Capital (while varying by company, tentatively set at 5 million yen)
    Creating official seals (company seal, personal seal)
    Registration of incorporation and filings by proxy
    Filings by proxy for taxes and social insurance, etc.

    Those using the O-BIC Support Program for Foreign Companies may receive a subsidy of up to 150,000 yen to be used on registration expenses and fees for acquiring Status of Residence.

    Click here for more information


Total


Initial Business cost in Osaka is always 20% to 30% lower than that of Tokyo.
By using BSO and O-BIC Support Programs, you can ensure even more advantageous start to your business.

Created from the July 2016 edition of the Initial Cost Estimation Guide on the JETRO homepage