Notes on operating a business in Japan
Here we explain what you need to be aware of when you are doing business in Japan.
Business Licenses
In Japan, business licenses are required for some types of businesses.
Even if you are a foreigner, if you want to do business in Japan, you need to obtain the necessary business licenses.
If a business license is required, the business will be started after the license is granted.
Business that requires a license (example)
- Sales of used cars
- Travel business
- Accommodation business
- Real estate sales
- construction industry
There are many other businesses that require licenses.
It is illegal to operate a business without a business license, even though a license is required.
Foreign Exchange and Foreign Trade Law (1949)
Japan has a “Foreign Exchange and Foreign Trade Law”.
If you want to set up a company in Japan or set up a branch or representative office in Japan, you may need to report beforehand or after the fact, as required by the Foreign Exchange and Foreign Trade Law.
There are also cases in which you may be required to report before or after receiving high value remittances from overseas, as required by the Foreign Exchange and Foreign Trade Law.
Immigration and Refugee Recognition Act
Foreigners staying in Japan must comply with the rules set forth in the Immigration and Refugee Recognition Act.
A common mistake is to say, “Once you get the status of residence, you can do any job”.
The type of residence status in Japan determines what kind of work you can do.
You may also need to change your status of residence if your circumstances change such as changing jobs.
You can’t just say, “My friend was fine, so I guess I’ll be fine too.
If there is a violation, in the worst case, you will be deported and may not be able to enter Japan for the time being.
You must always abide by the rules set by law.