How to Start a Small Business in Japan
Starting a small business is not an easy feat. It involves money, time,
dedication, luck, hard work, passion, and most importantly, the knowledge to make
your business a success. If you are thinking of creating a business abroad, it
is understood that the risks are greater of starting fresh in a foreign
country. However, only you can tell if this is the right decision for you to
take and whether the risks of building a business in a foreign land are worth
it.
Japan is the second highest-ranking country in Asia when it comes to global
competitiveness. Many expats are attracted to opening a business in Japan
because of this and many have met success in their venture.If you want to try
your luck in the land of the sun, here are just a few things you should know.
The first thing that you have to overcome when starting a new venture is the legalities. Understanding
the laws and regulations that apply to you and your business is of utmost
importance if you’re in it for the long haul. Think about what type of
corporation structure you want to adopt and figure out the requirements to make
it happen. There are four types of business structures in Japan –
Kabushi-Kaisha (KK), Limited Liability Company or Godo-Kaisha, Limited
Partnership Company or Goshi-Kaisha, and General Partnership Company or Gomei
Kaisha. Each will have their own strengths and weaknesses that only you can
determine whether it would be fit to your business model.
Make sure to look up the requirements for establishing your business office
as well as your visa. A foreign national registered as a long term or permanent
resident, as well as a spouse or child of a Japanese national, will have an
easier time of starting a business in Japan. Otherwise, you may need to apply
for an investor or business manager visa. The cost of doing so will depend on
the scale of your business, as well as your office rental fees, employees’
salaries, office equipment and so on.
You don’t have to live in Japan to do business in the land but depending on
the type of your business, it might be best for you to stay. When you’re granted
an investor or business manager visa, you will also get a residence card so you
can secure your office space and open a local bank account.
It’s valuable to get a trusted lawyer and financial advisor at this point
because they’ll know the rules better than you do. Dealing with taxation
and business laws is complex enough as it is without the
language barrier so it’s best to consult the matter with experts.
When you’ve jumped through all the hoops in starting your business, it’s
time to get on your feet and make your dream happen! Whether you’re in the business
of selling home
appliances, electronic gadgets, food, fashion, cosmetics, or
anything in between, knowing how to attract your potential market and making
them your loyal customers will be the key to your success.
