How to Establish a Company in Japan in 2021

So, How To Setup A Small Business in Japan? Foreign nationals wishing to start up a small business in Japan need to obtain a “Business Manager” Visa. To receive this status of residence, in addition to opening an office, the applicant must employ at least two people full-time, or invest at least 5 million yen in Japan.

Small Business in Japan

Is it easy to start a business in Japan?

Opening a Small Business in Japan is not easy! I have personally founded companies in Europe and other parts of Asia, and I have found that Japan is particularly difficult because: The bureaucracy is all in Japanese.

Setting up a Small Business in Japan, even just a small one, already requires a lot of detailed work, research, analysis, time management, hard work, and patience. If you are thinking of setting it up on foreign land, you need to double your efforts and even include consulting with people who have knowledge about doing so in that particular country.

Maybe you already have a country in mind. If you are thinking of putting it up in Japan, then these are general guidelines that may help you.

How To Setup A Small Business in Japan

Small Business In Japan

  • Study their market. Japan’s pop culture, expertise, and traditions can be heavily seen in their products. Find out which items are most popular within the country. Remember that popular Japanese items in other countries may not be as popular locally. Determine which kind of items that people in Japan spend their money on heavily. You must be sure that your business plan will work.
  • Apply for a visa. You can check the embassy of Japan and find out more about the right kind of visa and how to apply for it. You can also call and seek advice from friends who have been there for a long period of time. For some countries, their citizens can enter Japan even without applying for a visa.
  • Read Japanese publications. Economic issues and other business trends in Japan can be derived from their publications. If you still do not have an idea of what kind of business to put up, you may just get your idea by reading them.
  • Study Japan’s system and rules. Japan’s Trademark system and rules may differ from other countries. Also, do some research on their Design Protection system.
  • Study tax information. Know the ins and outs of the country’s tax system. This may be enormously vital to your business. The rules between locals and foreigners may differ so make sure that you have read them thoroughly. Seek advice from tax advisers.
  • Invest in property. Japan has a high cost of living compared to other countries so it is best that you look for low-cost properties that suit your business needs. A lot of ex-pats today go for foreclosed properties and convert them into English schools or tutorial venues.
  • Register the business. Make sure that you have your legal contracts and papers. Then you can fulfill your registration at the Legal Affairs Bureau of the Ministry of Justice. You must prepare yourself for this for it can take lots of time and money.
  • Be part of a network. You can breeze your way into being a businessman in Japan if you have connections within the industry. You may build a website for your Small Business in Japan. You can also find out more about their social networking sites. This way, you can be updated regarding your target market.

As mentioned, detailed and extensive research is required when setting up a Small Business in Japan. Make sure that you are heavily informed about property investments, business application processes, and other mandatory requirements. There are websites giving you information regarding low-cost properties in the country so refer to them as well.

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