Foreigners Guide: How to move a business to Japan?
There are many reasons to move a business to Japan. But, also, there are many challenges of doing business in Japan. That’s why we bring you some things to consider when you want to start your business in Japan as a non-Japanese.
There is one interesting fact. In 2011, after the very big earthquake in Japan, it was increasing number of non-Japanese companies in Japan. When the National Tax Agency JAPAN released their annual report for 2015, it showed that after 2011, the number of foreign corporations has increased by 16% in two years.
Advantages of doing business in Japan
If you want to move a business to Japan you should know all advantages and disadvantages of your business relocation. First, you should know that international relocation to Japan isn’t easy. Kokusai Express can help you with your stress-free relocation to Japan.
Living in Japan – feeling of safety
There are many reasons to open a business in Japan. As many expats living in Japan say, the most attractive point for them to settle in Japan is the feeling of safety. Especially for women and those who have children. They say it is the best part since they don’t need to worry when roaming around.
Public transportation – easy access for all Japan towns
The public transportation system in Japan such as trains and subways are best in the world. Especially in Tokyo area provide you easy access from town to town. You can get inexpensive transportation fees and safety.
Move your business to development center of world
Many world famous companies like Apple want to move their development center in Japan. That tells you something, right? Japan is the great option for all of you who want to move a business in another country. Its development is fast and the economy is the best in the world.
Everyone in the world knows that Japan is now the leading center for innovation. In this country, you can find an attractive business within one of the world’s largest economies.
Moving business to Japan is inspiring for those who want more inspiring ideas for business.
How to move a business to Japan? Tips for Starting Up Your Business in Japan
To start up your business in Japan, you should think about many things. First, you should know the system of international business laws in Japan and regulations regarding the establishment of a company. There are many challenges of doing business in Japan. But we bring you some basic information about it.
Organisations are required to communicate with the ward office. Also, with the Legal Affairs Bureau of the Ministry of Justice. Don’t forget to communicate also with the District Tax Office, the Japan Pension Service, the local tax office, the Public Employment Security Office and the Labor Standards Inspection Office. All that before other procedures can be considered.
Corporation types in Japan
There are four types of the corporation in Japan.
- Stock company (Kabushiki Kaisha).
- Limited liability company (Godo Kaisha).
- General partnership company (Gomei Kaisha).
- Limited partnership company (Goshi Kaisha).
Foreign companies generally establish a business presence in Japan by:
- Registering as a foreign company and establishing a branch.
- Establishing a subsidiary company (usually using a stock company).
- Appointing an agent, distributor or franchisee.
- Setting up a partnership.
- Registering as a foreign company and setting up a branch is generally the simplest way for foreign companies to establish a business presence directly in Japan. However, a branch does not have an independent corporate status. A registered foreign company is legally responsible for the activities of its branch in Japan.
Doing business in Japan – legal issues
If you want to live in Japan and become a director or a partner at your own company, there will be a big issue of acquiring Investor/Business Manager Visa.
But, you don’t have to live in Japan to open your business in Japan. There are three ways to do it.
- Representative office. The establishment of representative offices doesn’t require registration, but they cannot open bank accounts by the name.
- Branch office: Having branch in Japan requires registration.
- Subsidiary company: The procedures and conditions of establishing a subsidiary company are as same as establishing a Japanese company.
Taxation is also an important thing to consider when choosing the type of company you are establishing.
If you are willing to hire someone, the government will require you to do things for the workers you are going to hire. But will also support you with recruitment.
Laws and Regulations
The Japan has laws regarding the protection of workers. Such as minimum standards on working conditions and minimum wage. The laws apply to all companies in Japan. Regardless of whether the worker and the company are Japanese or non-Japanese.
Hiring Japanese workers
If you are looking for Japanese workers, there are government-run employment agencies called “Hello Work”. They have offices throughout Japan. They provide both employers and employees with the support of matchmaking for free.
Social Security System/Insurance
Everybody residing in Japan is part of the Japan insurance system such as the public health insurance and pension insurance.
Getting credit and protecting investors
Getting credit is a relatively simple procedure in Japan. Investors have a good protection from the system.
Finding partner when you move business to Japan
Finding good partner is very important when you move a business to Japan. You can find a tax and accounting firm who is knowledgeable about both Japanese and international business. And taxation as your partner/consultant, you can concentrate on your business without worries.
Doing business in Japan – cultural differences
When you move a business to Japan, it is so important that you learn all about Japanese culture. Relationships drive business in Japan. So you must show the right level of respect and be polite and diplomatic at all times.
Patience is essential when handling business relations. Also observing local etiquette in terms of gift buying is important.
In Japan, strong work ethic is a must!
Japan is a predominantly collective society. Which places a huge emphasis on the group. That means each individual often feels a strong sense of belonging. And also responsibility towards their workplace. Leadership is important. So a competent, hardworking and personable superior is expected to be willing to sacrifice his personal time.
If you want to have business in Japan it is important to know that the group business is more popular than the individual. Existing relationships are valued.
- A hard-sell approach will not succeed in Japan. Forget the high pressure. Replace confrontational approach with a more gentle. Replace the persuasive presentation that showcases the virtues of what you are proposing.
- Japanese people are notoriously private and reserved.
- Business clothes are conservative.
- Observing small details of politeness is a big way of showing respect in Japan. You should think about this if you want for example to blow your nose in public. In Japan, it is considered in poor taste.
So, if you decide to move a business to Japan, first consider all of advantages and disadvantages for business relocation. The number of regulatory hurdles and cultural factors can make Japan a difficult country to relocate. Which is why having help like Kokusai Express can be a big asset when expanding into the country.