Japan’s business culture is a world of its own, shaped by deep-rooted traditions, hierarchy, and unspoken expectations. Unlike casual social interactions, the corporate environment operates on a set of unspoken rules of business in Japan—customs that are rarely explained but universally understood. For foreign entrepreneurs and professionals, adapting to these nuances is key to building strong relationships and achieving success. From understanding implicit etiquette to navigating business registration, this guide will walk you through everything you need to know. 

Benefits of Working with the Japanese Market

Expanding into Japan presents numerous advantages for businesses seeking long-term growth and stability. With a well-developed legal framework, a highly structured corporate environment, and strong global trade policies, Japan offers a predictable and business-friendly atmosphere.

One of Japan’s biggest strengths is its economic stability. The country’s legal system, rooted in civil law, ensures consistency and transparency in business regulations. This minimizes unexpected policy shifts, allowing companies to plan strategically with confidence. Additionally, Japan’s corporate structures, such as joint-stock companies and partnerships, provide flexibility in navigating its competitive market.

Furthermore, Japan’s infrastructure supports trade and innovation, with agreements like the CPTPP making international transactions smoother.

13 Unspoken rules of business in Japan

When it comes to conducting business in Japan, unspoken rules of business in Japan are crucial to understand, yet they’re rarely discussed openly. These unwritten expectations aren’t something you will learn in a classroom; instead, they’re absorbed through careful observation and a deep respect for the culture.

1. First impressions (and every other impression) matter

In Japanese business etiquette, the first impression is crucial, but it doesn’t stop there. Every interaction you have throughout the business exchange matters just as much. The way you introduce yourself sets the tone, so it’s essential to make sure you come across as polished and professional during your greetings.

When it comes to greetings, the classic question arises: handshake or bow? Both are acceptable, but not at the same time. Traditionally, the Japanese bow at a 45º angle to show respect and courtesy. However, in recent years, the Western-style handshake has become more common. A simple, one-handed handshake is sufficient; avoid prolonged or two-handed handshakes, which may seem overly familiar.

It’s important to also be mindful of hierarchy and seniority during greetings. In Japan, business relationships are built on respect for rank, so always address senior members first, directing your attention toward them while still acknowledging the others in the room.

2. Dress code

The unspoken rules of business in Japan demand a level of conservatism in attire. While formal business attire is the standard, there are specific expectations for both men and women. Men are typically expected to wear suits, even in warmer weather, while women are encouraged to wear professional attire, including skirts that must be at or below knee level. Jewelry should be minimal, and high heels are discouraged. For both genders, well-groomed hair and a professional appearance are expected.

3. Business cards as extensions of yourself

In Japan, a business card is not just a contact information tool—it is a representation of you. When exchanging cards, it’s essential to do so with respect, presenting the card with both hands and receiving it the same way. Always read the card carefully before placing it down, as this gesture shows respect. Don’t put someone’s business card in your back pocket, as this is considered disrespectful.

4. Preparation is everything

In Japan, preparation is key. Whether you’re giving a presentation or simply attending a meeting, you’re expected to be fully prepared, often over-prepared. This means having all relevant documents printed and ready, even if you’ll be presenting on a screen. Sending materials ahead of time is also appreciated, showing respect for your partners’ time. The more thorough your preparation, the more respect you will earn.

For example, if you are scheduled for a business meeting with a Japanese company, you should anticipate potential questions and prepare precise answers. Arriving with printed documents, data-driven insights, and a structured agenda will show your dedication. If a presentation is involved, rehearsing in advance and ensuring all technical aspects are set up before the meeting begins will prevent any unexpected disruptions.

5. Punctuality

One of the most important unspoken rules of business in Japan is punctuality. However, in Japan, being on time isn’t just showing up at the designated hour—it means being at least 15 minutes early. Plan, as the trains and traffic can often delay even the most prepared professionals.

6. Mastering formality in speech

Japanese business culture has a wide range of speech levels, and using formal language shows respect. One key rule to follow is using the appropriate honorifics, such as -san, when addressing colleagues or business partners. Avoid addressing someone by their first name unless explicitly invited to do so.

7. Outstanding Teamwork Culture

Japanese business culture places great emphasis on teamwork over individual achievements. While acknowledging individual contributions might be more common in other cultures, in Japan, the focus is on group solidarity. Complimenting the team as a whole rather than singling out individuals, is seen as respectful and in line with the unspoken rules of business in Japan. However, in some specialized fields such as technology, design, etc., individual capabilities are still highly valued.

8. After-work culture

In Japan, work doesn’t stop at 5 pm. After-hours socializing, typically involving drinks, is a crucial part of building professional relationships. Accepting invitations to these informal gatherings is expected. However, it’s important to maintain professionalism even during these casual settings—moderating your alcohol consumption and avoiding inappropriate behavior are part of the unspoken rules of business in Japan.

9. Elevator etiquette

In Japan, elevators are not places for casual conversations or phone calls. If you’re in an elevator with colleagues or strangers, it’s best to remain silent and keep your interactions minimal. Furthermore, when exiting the elevator, it’s customary for the person nearest the button to hold the door open for others, demonstrating respect and awareness of your surroundings.

10. Top-up glasses for others

In business and social settings in Japan, it’s considered polite to top up others’ drinks, particularly those of superiors. This is an important way to show respect and attentiveness. When you notice someone’s glass getting low, offer to refill it before it’s empty. As the guest of honor, it’s also important to wait for others to refill your glass.

11. The power of small nods

Interrupting someone while they’re speaking is considered rude. Instead, small nods are used to show that you’re paying attention and understanding what’s being said. This quiet acknowledgment helps maintain the flow of conversation without breaking the speaker’s focus.

12. Knock 3 times

Before entering a meeting room, you should knock on the door three times. This simple gesture signals that you respect the privacy of those inside and that you’re prepared to engage. It’s also polite to announce your name and company before entering, even if you’ve been expected. Adhering to this rule will ensure you don’t come across as disrespectful.

13. Show respect through thoughtful gestures

When hosting a meeting, it’s considered respectful to walk your guests out and continue to bow as the elevator doors close. This shows respect for their time and presence, and the act of bowing until they’re out of sight is a significant gesture in the unspoken rules of business in Japan.

Learning from Luvina Software—Trusted by giants in Japan

Luvina Software, by its deep understanding of Japanese culture and business climate, provides valuable support for foreign businesses in their efforts to enter the Japanese market with minimal obstacles. Through its established relationships with Japanese partners and employment of Japanese as well as Vietnamese professionals who are fluent in Japanese, Luvina effectively bridges cultural and linguistic differences. This localized information ensures that foreign firms can move around the unique market forces of Japan without difficulty and without experiencing the common challenges that usually occur in global expansion.

Luvina’s wealth of experience in collaborating with Japanese companies over the past 20 years enables it to offer tailored solutions that are both culturally sensitive and market-relevant. We have fostered long-term relationships with major clients like Cresco, TIS, NRI, and Mitsubishi, many of whom have been our partners for over a decade.

During more than 2 decades in Japan, Luvina has built a reputation for excellence by having earned prestigious awards such as:

• – The “Tokyo Tech Venture”: Recognizes companies that demonstrate outstanding innovation and potential in technology, awarded by the Tokyo Institute of Technology to promising startups.
• – The “Kuramae Award”: Honors businesses that have made significant contributions to technological advancement and business growth in the Kuramae region, Japan, particularly in the field of IT and innovation.

Our thorough understanding of the unspoken rules of business in Japan helps clients integrate seamlessly into the market, ensuring smoother interactions and stronger local partnerships.

• Cultural expertise: Luvina employs native Japanese speakers and Vietnamese specialists who are knowledgeable in Japanese and familiar with local culture. This ensures accurate localization and effective communication for businesses.

• Proven experience with Japanese partners: Luvina has successful experience working with major Japanese corporations over the years, with comprehensive market insights and strong contacts for overseas companies.

• Seamless market entry: Luvina offers a smooth path for international businesses to penetrate the Japanese market, avoiding common problems such as language and cultural differences, which are known to hinder success.

• Localized solutions for sustainable growth: Through support, product localization, and market validation, Luvina ensures that foreign firms can grow sustainably within the competitive Japanese business environment.

Luvina will be a trusted partner for foreign businesses to conquer the Japanese market. Contact Luvina today to receive advice on the most suitable solutions.

Conclusion

In short, doing business in the Japanese environment requires caution in understanding its cultural elements. Despite the unending unspoken rules of business in Japan, adhering to the key ones we have indicated will set you on the path. Japanese business protocol is one of respect, humility, and trust established in the long run. The deeper you become embedded in this unique environment, the more you will learn, but mastering the basics will ensure an easy and fruitful experience in Japan’s competitive marketplace.