Cracking Japan: What Every Indian MSME Needs to Know Before Doing Business in the Land of Perfection

By Karnvir Mundrey

Doing business in Japan? Brace yourself.
If you think it’s just another international market, think again.

Japan is polite, process-driven, and painfully punctual. But once you’re in — really in — it’s a land of long-term loyalty, unbelievable trust, and kaizen (continuous improvement) that’ll make your business sharper than ever.

So how do you — the fast-moving, frugal Indian MSME — win over a market that runs on slow-cooked precision?

We’ve got the inside scoop. Straight from the mouths of Indian entrepreneurs, Japanese legal experts, and former Toyota execs who’ve lived it for decades.

Let’s go.

💡 The One Word You’ll Hear in Japan: “Muzukashii Desu”

Rough translation?
“That’s difficult.”

More accurate meaning?
A polite “no.”

MSMEs beware: Japan doesn’t say “no” the way the West does. It watches, waits, and withholds. Until you earn the right to a “yes.”

So how do you get there?

🌸 The 8 Ps That Unlock Japan

Former Toyota executive Mr. Parasuraman offers his MBA-in-a-minute for success in Japan:

1. People – Everything starts with people. Train them well, lead them better.
2. Punctuality – Arrive on time. Always.
3. Process – Follow steps 1 to 10. No shortcuts.
4. Planning – Meetings are booked six months in advance.
5. Product – Safety first. Quality always.
6. Perfection – Details matter. Really matter.
7. Procedures & Practices – Standardize everything.
8. Performance Improvement – Grow one step at a time. Never jump. Never skip.

🇯🇵 What Makes Japan Difficult – And Why It’s Worth It

Indian entrepreneur Jishnu Madhavan has lived in Tokyo for over 23 years. His verdict?

“Japan is like a bonsai. It needs patience, pruning, and care. But most Indian MSMEs want fast-growing bamboo.”

He cracked Japan by changing himself: learning the language, adjusting to customs, respecting hierarchy, and never skipping steps.

🧾 Legal Setup? Read This Before You Land

Carlos Makoto Taitano, Chief Legal Officer at World Trade Center Tokyo, shares a reality check for Indian MSMEs:

✅ You’ll need:

1. A strong immigration lawyer – to match the right visa with your business model.
2. A tax advisor – Japanese tax law is deadline-driven and unforgiving.
3. A local partner – You can’t open a bank account without one.

Also, get used to the “hanko” (official seal) – no one cares about your digital signature. The president’s physical stamp still rules the roost.

✈️ Thinking of Just Landing in Tokyo and Figuring It Out? Don’t.

DON’T.

Japan runs on appointments, protocol, and pre-planning. You can’t just walk into an office and expect a meeting.

Instead:

• Reach out to JETRO (Japan External Trade Organization)
• Connect with SMRJ (Small and Medium Enterprise Agency)
• Email companies in advance — they WILL reply
• Or let WTC Tokyo or BCIC help match you

📍Where in Japan Should You Start?

Not everything is Tokyo!

• Nagoya = Auto hub
• Kansai/Niigata = Manufacturing and agriculture
• Osaka, Yokohama = Tech and trade
• Tokyo = Business HQs, cosmopolitan lifestyle

Go where your sector thrives — not just where the big lights are.

🏠 Living in Japan: Language, Lifestyle & Food

• Language: Learn basic Japanese (Level 3 is doable). Grammar matches Indian languages!
• Schools: Indian CBSE schools and international options are available
• Food: Vegetarian? Relax. You’ll find everything — even Alphonso mangoes.
• Housing: Rental agreements are simple and straightforward
• Transport: Trains are spotless, punctual, and people-driven — no conductors, no chaos
• Safety: Kids walk home alone at midnight. Enough said.

🚀 Bonus: Japan Wants Indian Startups

Yes, seriously.

Japan is funding innovation — in real estate, HR tech, tourism, and more. If you’re a startup founder, you’ll love the Sushi Summit (Tokyo’s giant startup expo) and the wealth of funds waiting to be tapped.

💬 Final Word: It’s Not Easy. But It’s Worth It.

Doing business in Japan won’t be fast. It won’t be flashy.

But it will be rewarding — if you prepare, persevere, and respect the process.

So, MSMEs: ditch the jugaad, embrace the bonsai, and say “Hai!” to Japan.

The Discovery Web series is run by the World Trade Center, Bangalore. Moderated by Karnvir Mundrey. To attend future episodes get in touch with Vivek George (vivek@wtcbengaluru.org) or April Varkey (aprilvarkey@wtckochi.org).