- Setting up business in Japan
- Different types of company in Japan
- Sole proprietor (kojin jigyo) in Japan
- Different types of operation for a foreign company
- Representative office
- Branch office (shiten)
- Subsidiary (company established under the Japanese Law)
- Registering a branch office in Japan
- Procedures and costs : how to set up a company in Japan ?
- Required documents and the details to decide in the Articles of Incorporation
- Business Consulting Services in Japan
- Introducing Accounting, Social Security & Trademark Specialists
- Market Entry & Business Consulting
- Test Marketing & Channel Development Consulting
- Executive Search & Recruitment Consulting
- Real Estate Services & Consulting
- Visa and Immigration Procedure in Japan
- Working visa, spouse visa, status of residence, Premanent Residence, Nikkei...
Setting up business in Japan
Becoming a sole proprietor in Japan
When starting a new business in Japan, it is often best to start as a sole proprietor (kojin jigyo), at least at the beginning to see how it develops, as it is less complicatd and requires less tax until certain amount of profit.
- is a business owned and run by one individual
- can use a commercial name
- doesn't separate its owner and the business
- owns all profits / losses, assets / debts of the business
However, the sole proprietor option is only available for:
- holders of Spouse of Japanese National visa, Long Term Resident visa, Permanent Resident visa, or Spouse of Permanent Resident visa
- holders of Working Holiday visa (with no restriction until the visa expires)
- holders of Dependent visa, Student visa or Cultural Activities visa with the permission to engage in other activities granted by the Immigration office (up to 28 hours per week)
- those who have stable contracts with Japanese companies, one of which is willing to provide necessary documents for obtaining or renewing "Engineer / Specialist in Humanities" visa or "Skilled Labor" visa (freelance translator, IT engineer, freelance sports instructor etc.).
- holders of work visas who do freelance work as a side job on top of the full time job they already have
If you wish to get a work visa through your own business that you will start in Japan, it is necessary in most cases to set up a company.
Also it becomes more advantageous in some cases to set up a company even if the sole proprietorship is an option for you.
For example, it is easier to gain credibility to do business as a company, especially if you deal regularly with Japanese companies.
A company has a limited liability, so the responsibility is limited to the amount of the capital invested.
After generating certain amount of profit, having a company could offer a possibility to use different tax rates that would eventually allow you to reduce the amount of tax to pay.
If you are starting business with several partners, it is easier to manage the financial aspects by setting up a company.
How to start a business as a sole proprietor in Japan
There isn't any registration procedure required to become a sole proprietor, so you can simply decide to do so one day.
All you need to do is to submit certain notifications to the tax office within 2 months after the beginning of the activities and file the tax declaration (kakutei shinkoku) once a year, between February and March for the inocme earned during the previous year.
>> One of the forms that need to be submitted at the beginning (*this is just an example and there are more)
Obviously these tax related procedures are all done in Japanese. You can also hire an English speaking accountant who will take care of the whole proecdures.
It is possible to hire employees (full-time or part-time) as a sole proprietor.
As for the social security, a sole proprietor can join the national health insurance and pension scheme (kokumin kenko hoken and kokumin nenkin).
It is necessary to obtain business licenses or permission from Japanese authorities when your activities fall into one ot those that require them.
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