Starting a business in japan proper guide

Starting a business in japan proper guide

I’ll explain how to start a business in Japan. And the info about the company.   What kind of Visa is good for business. So this is a perfect guide for starting a business in Japan. Okay, let’s get it started about starting a business in Japan.

I will provide you with the information in 4 segments | open a business in japan

  • Part1: If you plan to livelihood in Japan.  You have to express you are living in Japan or not
  • Part2: Corporation You need a firm to run a business in Japan
  • Part3: licenses Some careers need a  license such as a restaurant or a hotel
  • Part4: business support You may want some hold up from native people

If you plan to livelihood in Japan | business in japan

Part1: So I’m moving to gossip from A to living in Japan.   It hangs on whether you desire to live in Japan or not.   If you like to live in Japan you require a visa. And six types of visas are present.   I’ll spell out the six types of Visa expire. If you won’t live in Japan, no Visa necessitate.   So the choice you have is to Set up a business or branch company or indicative office.

How to set up a company in japan

The next one is Part 2 Corporation. In this case, need to register your business with the Japanese government.  

There are 3 types of business structure.
  • 1. Co Ltd, Japanese name is Kabushiki Kaisha
  • 2. The thereupon one is LLC.
  • 3. This third one is a sole proprietorship.   You have to choose one of them a business structure.

Which business start to need a license or not in japan

Part3: license Some businesses or careers need a license, and some do not. You need a work license if you want to do import, or export. Or restaurant or hotel business.   On the other hand, these kinds of businesses don’t require a license.   Like design work or language lectures or real estate investing.

Employment support for business in japan

Part4:You may want some hold up from native people. As the rearmost topic, business support in Japan. You may want local support such as legal,   tax, marketing, real estate, recruitment  (hiring people), or licensing.   So this is the whole vi of this content. Let me explain this topic.

Types of visas for starting a business in japan

I proceed to talk about visas.   If you want to live in Japan and have a  business in japan, 6 types of visas are available.   And basically, you need a long-term visa if you want to reside for more than 3 months per year.   About 6 types of visas, starting a business in japan

2 of kinds are working Visa

  • first is the Business Manager Visa
  • Second specified skilled professional visa

The other 4 kinds of visas are associated with the family

  • Like spouse or child of Japanese national visa  
  • Long-term residents visa
  • Permanent residents visa
  • Spouse or child of a permanent resident visa

This is basically family-linked. If you have a family you can be going with these visas. If you don’t have family here,  you have to get a working Visa.

The leading visa for business

So there are 6 types of visas for Starting a business in Japan. But basically, if you’re a foreigner and you potentially stay live in Japan and have a business,  the only option is the business manager Visa.   Of course, there are some conditions to getting a visa.

They are with 3 conditions

  1. First is you need to set up a company and an office in Japan.   Actual company and actual office.
  2. Second, maybe it sounds complicated but in B,   there are 2 conditions. Your company must have five million yen as capital. or your company must have to hire more than 2 people.  It turns on your business, but fundamentally, you need some money to run a business in Japan. so  I advise you to go with 5 million yen as capital. Because it’s transparent and effortless. So condition Second, you have to prefer one of them with five million yen capital, or employ 2 people.
  3. Third, your business plan has to be recognized by the Japanese government   So you have to write your business plan in  Japanese and the Japanese government checks it. And they are going to judge if your business plan is good enough or not.

Condition third is kind of a type because the Japanese government examiner whether your business is good or not. So you have to follow the rules or I should say you have to follow THEIR rules. I suggest you have some local support, like lawyers who are familiar with the Japanese rules.

So these are the major 3 conditions to get a business manager Visa. And essentially, you can get a one-year time for the first time with the Japanese government. investigate whether your business is going well or you are good sufficient to renew the visa. At first, one year, you can renew basically one year again.   And if you’re doing good you can get 3 years period next time. Then 5 years next time. So this is starting of how it goes.

Some of the concepts asked by the persons

By the way, some individuals ask about investors, and business visas. But it’s gone now. There was an investor and business Visa but it has been replaced with the business manager Visa. And some people ask for about the five million yen capital.

How do they serve it, they can spend it?

So basically 5 million yen is the capital of your company. So you can use that 5 million as a company expense but you need to keep it basic. Because when you renew that visa the Japanese government tech financial status of your company.   If you’re just spending money plenty without a purpose I think you cannot extend the Visa so basically, you have to keep it. Of course, you are producing sales it’s good to use your money (your asset)

Part1: If you plan to livelihood in Japan

The next one is the case you won’t livelihood in Japan.   If you won’t live in Japan, the options are, You just can’t set up a company, set up a branch company, or representative office. So these options are accessible and basically, you don’t need to pay a lot of money. But the issue is its kind of tricky.   So it depends on how big your company is and what order of activities you desire to do in Japan.  

Part2: Corporation You need a firm to run a business in Japan

So the next concern is the company. All you would like to apply your business with the Western government. You can not only visit Japan and only sell a segment of one’s goods or your service. You want to enroll your business.  The business structure will be 3 options.

But if you’re going to get a business manager Visa, basically company limited,  Kabushiki Kaisha is the only alternative. If you’re living in Japan with a family-related Visa,   you can use the other options. like Godo Kaisha,  Kojin Jigyonushi. LLC or sole proprietorship.   begin fees and the tax method will be different by the business structures.   If you are on a journey to get a business manager  Visa simply choose Kabushiki Kaisha, Co LTD.

Part3: licenses Some careers need a  license such as a restaurant or a hotel

So the next topic is licensed. Some businesses need a license, some do not.   The business which mandatory a license is like export and import.   Technically it’s not a license, it’s called permissions of export or permission of import.   Certain permission is needed for each item. if you like to do alcohol or some seafood.  Or skincare stuff, furniture. So you want permission for all items.   So you have to inspect what kind of products, what kind of items you want to do import or export.  

If you’re starting a restaurant you need a license.   So a license costs some money. If you’re opening a restaurant.   You serve food or drink, it costs 160 USD. If you just serve drinks, no alcohol, you need a   coffee shop license. Cafe license. It cost 100 USD.   This price doesn’t include the expense of lawyers. You may need some lawyer help to receive the license.   And the price depends on how big your restaurant is. What is expected of the restaurant you want to do.  

So a business that necessity a license is a hotel.  You need certification from the fire department.   And the permit by the public health department. They check that your hotel is safe and sufficient, clean enough, and how you treat your rooms.

if you want to do agent business, you find anybody and you want to sell someone’s property to someone,  it’s agent business, you need a license.   The license name is Takken. It’s (the license system) complicated but you need it. But if you need to buy someone’s real estate and you do your business there, you don’t involve any license.

Some businesses have don’t need a licenses

A business that doesn’t must have any license is like, Design work, or language school.   If you’re opening an English class,  you don’t want any license.   You exactly have a business structure like Kabushi Kaisha, then just go.   And if you must do real estate investing, you don’t demand any license.   But in the real estate industry.

Part4: Business support must important for an open a business in japan

So as the last talking point is business support. So I’m going to describe the details of each point. If you’re a business person and you have some experience in the business sector, I think you have some questions about tax. So I’m going to explain the tax following in the end.

Legal issues support in business

So about the legal issues.   When you make a big contract, just let a lawyer review your contracts.   Otherwise, you will lose your money and your business. So just find a lawyer.   Japanese lawyer.

Market support in business

If you target the Japanese market,  you’d need Japanese marketing support.   If you are targeting foreigners in  Japan, I think you don’t need any help,   cause you can do it.

Support in the Real estate business

Be careful, during Starting a Real estate business in Japan, don’t get ripped off by real estate agents.   Study up or just find a supporter you can trust.

Support for Recruitment in business

Recruitment services for Hiring people.   Actually, it’s not that hard to find employees in Japan. There are some sites on the Internet where you can recruit without commissions. Like hello work or indeed. Hello, work is basically owned by the government. So it’s a good solution to find people for starting a business in Japan. And indeed is good as well.

Paperwork support in business

I know it’s tough for you. Because it’s super   Japanese. So you may need a judicial scrivener or administrative scrivener. The Japanese name is   “Gyosei sushi”行政書士 and “Shihou sushi ”司法書士 who would handle Japanese paperwork for you to start a business in Japan.  

Last foremost support and conditions in business in japan

Okay, that’s it. I’m going to talk about tax as a bonus track.  K, let’s talk about tax. Japanese tax.   You may need some support from the tax. But maybe you wanna know about the tax system of Japan.  

  • So basically annual tax declaration is required every year.   The tax system is too complicated even for the Japanese.  So I’m asking a tax accountant to do it.   I think you need a tax accountant as well. So choose a tax accountant who is strong in tax saving. You don’t wanna pay tax a lot, right? Annual fees for tax accountants start at 1,000   USD. so 100,000 yen in Japanese yen. But the price depends on the size of your sales. How much do you make.
  • The actual corporate tax rate is about 30%.   So if you made this money, you have to pay 30% corporate tax.   but if the profit is low, the tax rate goes down, of course.
  • Or if you go to a fancy restaurant with your business partner, Or just nightclubs, or whatever,  can be recorded as expenses if you can say this money is used for sales for the company. If an item costs more than 30man,   300,000 yen, it will be charged as depreciation.
  • In the case of Kabushiki Kaisha, Co Ltd,   if your company’s profit is in the red, the tax is basically only 6 man yen. 60,000 yen per year.
  • that’s it. Taxes are complicated,   so you need to ask a tax accountant for correct information. This is just a brief explanation.


Hi, I am Lovepreet Singh a professional Travel blogger and affiliate marketer. I have started my career in blogging in 2019. Currently I am working as SEO Expert at The Incredible Globe.

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