Q: I am a foreigner living in Japan. I am thinking of starting my own company. What issues do I need to be aware of?
A: When a foreigner wishes to start a company in Japan, there are basically four issues that he/she needs to think about: (1) The establishment procedure of the company, (2) the type of visa, (3) whether a business license is required for the type of business he/she wishes to operate and (4) taxes.
(1) The establishment procedure of a company is rather complex, and many important decisions must be made during the process. For example, deciding which type of company best suits your needs, who your business partners will be, how to regulate the rights/obligations of each business partner and investor, how much to invest, what businesses to operate, the company structure, etc. The process to apply for company registration involves many documents, all with very specific requirements.
(2) As for the visa, if you are planning to become representative director or other management position in your company, there is a possibility that you will need to change your visa to an investor/business manager visa. However, whether you will need to do so will depend on the type of visa you currently have, the size of your company, the position you are planning to take on and the relationship with other positions. In order to obtain an investor/manager visa, you will be required to meet many requirements which include, among others, the need to invest at least 5 million yen into the company and having a proper office. Please be aware that even if you establish a company, unless you have the visa requirements in mind, the company will not necessarily be sufficient to obtain an investor/business manager visa. Thus, please consult with an Immigration specialist before establishment to be sure that your company will fulfill the requirements to obtain the proper visa.
(3) Many types of businesses require business licenses to legally operate in Japan, for example, restaurants, purchasing/selling of used goods and used cars, recruitment, purchasing/selling of real estate, etc. Please consult to find out whether or not the business you are planning to operate requires a business license.
(4) After establishment, you will need to take care of your company’s taxes on top of your own personal taxes. We are able to make introductions to partnering tax accountants who provide services in English starting from around 25,000 yen per month (prices will vary depending on sales volume, number of employees, etc.).
Please use our free initial consulting service to find out whether we can provide you with the assistance you need in taking this important step in your life.
＊This entry is for informational purposes only, and may not apply in all cases. Please feel free to make an inquiry via e-mail for assistance regarding your special case.
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