HOME > English Homepage > Setting up business in Japan
- 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
- FAQ
- Business Licenses
- Certain types of business require business licenses in Japan
- 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.
However the sole proprietorship is not an option that is open for everyone. Those with Spouse of Japanese National visa, Long Term Resident visa, Permanent Resident visa, Spouse of Permanent Resident visa can choose to become a sole proprietor without any restriction.
Also in some cases, it is better to set up a company (see here for the advantages of setting up a company in Japan).
If you have stable contracts with Japanese companies, it is also possible to work as a sole proprietor with some conditions under "Specialist in Humanities" visa or "Engineer" visa (freelance translator, IT engineer, etc.).
Those with a "dependent" visa or student visa can also work as a sole proprietor within the limited hours (28hours/week). It is also necessary to get a permission to work at the Immigration office in advance.
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)
>> Income Tax Guide for Foreigners by National Tax Agency
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.
We support foreign companies who wish to operate business in Japan.
For more information, click here.
Copyright © 2006 Yoko Majima - All Rights Reserved.