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.
Registering your personal seal at the government office proves that it is “your own personal seal” and is also used to verify your identity.
The registered seal is called a “jitsuin” and is used in important situations such as purchasing real estate, and getting a loan.
The seal of a corporation is also registered at the Legal Affairs Bureau as a real seal of the corporation.
Be sure to register your company seal, as you will often need it in your business.
Submission of notification of establishment of a corporation
Once the company has been established, it is necessary to submit the registration form for incorporation to three locations.
Keep in mind that the deadlines and forms of documentation vary depending on where you apply
1. Reporting to the tax office
It is filed with the tax office that has jurisdiction over the location of the corporation.
Deadline: Within 2 months of incorporation
Required documents: One copy of the articles of incorporation, act of donation, rules or regulations (two copies for domestic corporations with capital of 100 million yen or more)
2. Reporting to the prefecture
It is submitted to the prefecture in which the corporation is located.
Deadline: Varies by prefecture.
Required documents: a certificate of all historical matters, a copy of the articles of incorporation, and other documents required by the prefecture
The application form is different for each prefecture.
3. Reporting to the municipality
It is submitted to the city or town where the corporation is located.
Deadline: Depends on the municipality.
Required documents: a certificate of all matters relating to the applicant’s history, a copy of the applicant’s articles of incorporation, and other documents required by the municipality
The application form varies by municipality.
Submission of an application for approval of blue tax return
There are tax benefits to using a blue tax return.
If you want to take this tax benefit, you have to apply for approval of your blue tax return.
Where to submit: The tax office that jurisdiction over the location of the head office
Deadline: Within 3 months of establishment (*If the first fiscal year ends within 3 months, it must be by the end of the first fiscal year)
Notification of the opening of a payroll office, etc.
This notification is required when you hire an employee and pay them.
This is a necessary notification for application procedures for the status of residence “Business Manager”.
You should submit even if you do not have an employee, if you are planing to apply it.
Deadline: Within one month of establishment
Application for Approval of Special Provisions for the Delivery Date of Withholding Income Tax
For establishments with fewer than 10 employees, the withholding tax payment can be divided into two annual payments.
This is the notification to receive the special treatment.
These documents are required for the application procedures for the status of residence, so you should submit them even if you don’t have an employee.
If you are going to apply for the status of residence, you should submit it as soon as you are established.
Submit a new application form for health insurance and welfare pension insurance
When you set up a company, you have to take out social insurance.
You will be covered by health insurance and welfare pension.
Health insurance is required to receive medical services.
The welfare pension is a provision for those who are unable to work due to old age or disability
Many foreign nationals plan to return to their home countries when they get old, and there are cases where they refuse to join the welfare pension plan.
However, regardless of nationality, anyone over the age of 20 living in Japan is required to join the program.
In addition, enrollment and payment of a welfare pension is one of the requirements for a permanent residence.
Please be sure to follow the procedure.
Deadline: within 5 days of incorporation
Where to file: the pension office with jurisdiction over the location of the company
Required documents: Proof of all the corporate history
Notification required when hiring an employee
The following notifications are required if you are hiring an employee.
Notification of qualification for health insurance and employee pension insurance
This is the procedure for enrolling employees in social insurance.
Deadline: Within 5 days of employment (If there are employees at the time of establishment, this must be submitted at the same time as the new application for health insurance and employee pension insurance.
Where to file: The pension office with jurisdiction over the location of the corporation
Notification of the establishment of an insurance relationship and a declaration form for approximate insurance premium
This is a procedure of labor insurance .
Submit to: Your local labor standards office
Notification of the establishment of an employment insurance application office and notification of the acquisition of employment insurance coverage
This is a procedure related to employment insurance.
Submit to: Public Employment Security Office with jurisdiction
No special procedures are required to set up a representative office in Japan.
You don’t even need to register.
The representative office in Japan can collect and provide information about the business, conduct advertising activities, purchase goods for the home company, and liaison services.
If you want to continue to dealings in Japan, you need to appoint a representative in Japan and register it as a foreign company.
Until the registration is complete, you cannot continue to dealings in Japan.
