As an Expat who just moved to Japan, how business-friendly is Japan? What are the chances of having a successful business in Japan as a foreigner?
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As an Expat who just moved to Japan, how business-friendly is Japan? What are the chances of having a successful business in Japan as a foreigner?
As many expats living in Japan say, the most attractive point for them to settle in Japan is the feeling of safety. Especially for those who have children, they say it is the best part since they don’t need to worry when roaming around. Also, the public transportation system such as trains and subways, especially in Tokyo area provide you easy access from town to town with inexpensive transportation fees and safety.
For those who are willing to start up their business in Japan, there must be more than safety and convenience of transportation there.
Finding good partner is very important. If you can find a good tax and accounting firm that is knowledgeable about both Japanese and international business and taxation as your partner/consultant, you can concentrate on your business without worries.
Procedure can be rather draining when starting a business in Japan, with several layers of bureaucracy to be navigated before a company can get off its feet. Organisations are required to communicate with the Ward office, the Legal Affairs Bureau of the Ministry of Justice, the District Tax Office, the local tax office, the Labor Standards Inspection Office, the Japan Pension Service and the Public Employment Security Office before other procedures can be considered. It takes several days to arrange construction permits, some 14 procedures must be navigated, again involving several governmental departments and local authorities. Registering property is a lengthy procedure, and requires a certificate of the seller’s seal impression, payment of stamp duty at a post office, application at the Legal Affairs Bureau and payment of real property acquisitions tax. A modern finance system means obtaining credit is a relatively simple procedure in Japan. The legal system also offers good protection to investors, although the process certainly isn’t as streamlined as in other nations. Also, the Japanese tax system is a victim of the country’s love of bureaucracy. Corporate tax rates stand at 30%, with a line of other levies also requiring consideration.
As much as Japan is a big and industrious place to have your business, you have to weight the advantages and disadvantages of setting a business in Japan.