Rules to being self-employed

[GaijinPunch]

Anyone know what's up with this? If you were a contract worker doing teaching/translating etc., but also owned a small business (yuugen gaisha) on the side and worked out of your house, is there a fine line on what you can write off? Specifically rent and train passes and all that stuff? Does the majority of your income have to come from the small business to benefit from expensing things?

This is assuming that all your hired as an individual to do contract labor, and not a company.

 

[pipokun]

The new comprehensive corporation law is expected to pass this Diet session, so all regulations will be changed next year.
I heard that no yugengaisha any more from next year on.

 

[GaijinPunch]

Err... so they're basically going to make it even MORE difficult for small businesses? Sounds fishy and stupid...yet, I don't have THAT hard of a time believing it. In short, get an accountant and have them explain?

 

[pipokun]

Err... so they're basically going to make it even MORE difficult for small businesses? Sounds fishy and stupid...yet, I don't have THAT hard of a time believing it. In short, get an accountant and have them explain?

No, it will be much easier for next Horie shacho. For example, you can establish your 1 yen company more easily.

 

[GaijinPunch]

Aaah... so you could start a company but not have the pay the 30-man or whatever it is for it to be a yuugen. What will the new form of company be called I wonder?

 

[pipokun]

What I was trying to say is that the 1 yen is the minimum capital requirement. Under current regulations, 300man for yugen gaisha and 1000man for kabushiki gaisha.
Even now you can set up your own 1 yen kabushiki gaisha, but the requirement is a bit too strict. And you need at least 3 members of board of directers when you set up a Kabushiki gaisha now, but this regulation will be also abolished. So 1 yen and 1 person kabushiki gaisha will be possible from the next year.
From next year, the law will stipulate Kabushiki gaisha and Japanese-style LLC which is called Goushi and Goumei gaisha under current system.
You need the registration fee even after the deregulation from next year, I suppose.

When a friend of mine from an Asian country tried to set up his unlimited company in Japan, though he's gone back to his home... I supported him a bit and came to know that you could save money in the registration process if you do it by yourself.

Glad to invest another 1 yen for your 2 yen company.
good luck

 

[GaijinPunch]

Very informative, sir. I appreciate that explanation.