How to Set Up a Business in Japan

To do business in Japan you need to understand the Japanese business culture.

To set up a business in Japan, you will need to understand Japanese business practices as well as the mentality of Japanese businessmen. You will also have to carry out intensive market research to find a niche that will enable you run your business successfully. According to the Japan External Trade Organization (JETRO), the most lucrative business sectors include automotive parts, retail, ICT, Biotechnology, medical care and the environment.

Instructions

1. Research your potential market. Perform a study to help you establish whether there is a need for the products or services you intend to sell. Find out about your competitors and whether you will able to get a competitive advantage over them. Carry out research about Japanese laws and regulations pertaining to setting up a business.

2. Apply for a visa from the Japanese embassy or consulate in your country of residence. Indicate the purpose of your stay in Japan. Request detailed information about your visa application as a businessperson.

3. 

   Clearly evaluate and understand business tax requirements in Japan.

   Evaluate tax requirements. Consult certified public accountants in the United States, as well as tax accountants in Japan to find out relevant tax information pertaining to the type of business you would like to set up. Visit worldwide-tax.com for a comprehensive list of accounting firms, accountants and CPAs, as well as tax experts in Japan.

4. Select a legal structure. Choose the structure that best suits your business needs. In Japan, the main options you can choose from include a branch office for a pre-existing corporate entity, a corporate subsidiary known as kabushiki kaisha, a Japanese Limited Liability Company known as godo kaisha, or a liaison office. Get detailed information about each of these structures from JETRO.

5. 

   How you register your business in Japan depends on the type of business you wish to start.

   Register your business. Registration procedures and requirements vary according to the business structure you choose to operate. Detailed information about registration for each business structure is available on the JETRO website.

6. Obtain business licenses and permits. License and permit requirements depend on the type of business you set up. For example, restaurants, coffee shops and confectionery stores need a health permit from the Public Health Center. Second hand dealers require a permit from the local police station and real estate businesses require licenses from the local taxation office. The Matsuzaki General Counsel office provides comprehensive information about license and permit requirements for specific business fields.

References

• Matsuzaki General Counsel Office: License and Permission
• International Business Law Advisor: How to Set Up a Business in Japan
• JETRO: Investing in Japan
• Worldwide-tax.com: Japan's CPAs, Accountants and Accounting Firms