Can you help me?

 Q. Can you help me? I want to set up my own business.

 What kind of visa do I need?
To establish a business in Japan you will need to obtain an "Investor / Business Manager" visa (toshi-keiei) or hold either permanent residents status (eijusha), long term resident status (teijusha), a "Spouse or Child of Japanese National" visa (haigusha) or a "Spouse or Child of Permanent Resident" visa (eijusha no haigusha tou). Detailed information about these visas can be found on the Ministry of Foreign Affairs (MOFA) website at www.mofa.go.jp/j_info/visit/visa or by calling the Nagoya Immigration Information Center at 052-223-7336 / 37.

 Do I need a special permit?
Depending on the type of business you decide to establish you will require one or several permits. Since the most common businesses foreign residents decide to establish are restaurants, language schools and export-import trading companies, only permits relating to them are shown below.

Restaurant - Will require a permit from your local public health center (hoken-jo), and a permit from the Public Safety Commission (koan-iinkai) if you intend to operate after 22:00 or serve alcohol.
Language School - A permit from the Ministry of Education is required if opening a specialized private school, however no permit is required to run an eikawa or other type of after-school class.

Exporting & Importing - Although you require no permit for this type of business you will need to pay the necessary customs tariffs for Japan and perhaps the country you are exporting to. Some countries have very strict customs and may not allow some items to be brought in or sold in their territory. Make sure you thoroughly check with the appropriate authorities in all countries involved before commencing this type of business.

 When establishing a company in Japan, what is the minimum amount of capital required?
Within the Corporations Law of Japan, because any reference regarding specific capital requirements has been phased out, it is possible to establish a company (kabushiki-gaisha) with a nominal capital level of just 1 Yen. However, after establishing the company, if investment is to be conducted in Japan and you hold an "Investor / Business Manager" visa status, then you must either have 2 employees resident in Japan or have a nominal capital level of 5 million yen or more.

 Is it possible to register the corporate domicile as one's own house?
Yes, however if you are living in rented property, it is necessary to get a separate written consent from the property owner. Additional conditions exist for "Investor / Business Manager" visa holders.

 What about my own one-man business?

The easiest way to get started is to start your own one-man business or Sole Proprietorship (個人事業 kojin jigyo). It is possible for anyone to set up a Sole Proprietorship at anytime and there is no start up fee. Except in the case of some outside employment prohibition created by one’s current employer, it is even possible for an already employed individual (salaried worker) to set up a Sole Proprietorship. Individuals who start their own one-man business (Sole Proprietorship) are required to file a blue form called a kojin jigyo no kaihaigyo todokedesho (個人事業の開廃業等届出書 "Notification of Commencement of Business") to their local tax office at their ward office / city hall within 30 days of the business’s establishment. 

 What kind of taxes will I be required to pay?

You will be required to pay income tax (shotoku-zei), sole proprietor tax (kojin jigyo-zei) and residential tax (jumin-zei). Be sure to keep records of revenues and expenses as well as bills and receipts issued or received in relation to your business. If you decide to set up your own company you will be required to submit an annual tax return to your local tax office.

 Can I do the paperwork myself?

Yes, although paperwork can be very complicated and you may prefer to hire a public notary (gyosei-shoshi) to do the paperwork for you. The public notary will also submit the necessary documents to the appropriate authorities on your behalf. For more information contact the Aichi Gyoseishoshi Association Tel: 052-931-4068 Website: www.aichikai.gyousei.net

 Further Information

Setting Up Enterprises in Japan (7th Edition)

Written by: JETRO

Price: 6300 Yen

B5, 460 pages

Designed with the foreign business in mind, providing a wealth of information and guidance on laws and regulations governing company establishment and registration, visa and tax issues as well as employment and labor management. Also includes examples of forms businesses are required to submit to authorities. Available for purchase from the JETRO site (http://books.jetro.go.jp); a copy is also available in the Nagoya International Center Library.

 JETRO

JETRO operates six Invest Japan Business Support Centers (IBSCs) across Japan to provide one-stop support and service to foreign firms and business people seeking to set-up business in Japan. The centers, linked into relevant government ministries and agencies, provide free temporary office space, consultation with expert advisors and access to a wealth of business information. The Nagoya IBSC is a 2-minute walk from Marunouchi Subway Station, exit 5; located in the Nagoya Center Bldg. Annex 8F (next to the Immigration Office) Tel: 052-211-4517 Website: www.jetro.go.jp/en

 Canadian Chamber of Commerce in Japan (CCCJ)

Website: www.cccj.or.jp   Tel: (03)5775-9500

 Chubu Chapter of the American Chamber of Commerce in Japan

Website: www.accj.or.jp  Tel: 052-229-1525