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starting a business

mockingbird

後輩
5 Aug 2007
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I am thinking of following a prospective business lead in either Japan, China or possibly even Sth Korea, but am not entirely sure on the legalities of the situation.

Is anyone here familiar with the details of foreigners starting businesses in Japan? Like red tape, taxation etc etc?

Or if anyone has any links that might be useful?
 
I am thinking of following a prospective business lead in either Japan, China or possibly even Sth Korea, but am not entirely sure on the legalities of the situation.
Is anyone here familiar with the details of foreigners starting businesses in Japan? Like red tape, taxation etc etc?
Or if anyone has any links that might be useful?
What do you want to know? I started and run my own business here in Japan.
 
My partner is going to be completing her PhD in cross-cultural corporate communication, and i my graduate diploma in education (bachelor of social science), and were looking at prospective education opportunities in the stated countries.

And in regard to what I wanted to know Dave; I am interested in knowing if Japan makes it difficult for foreigners to start businesses the country? And also about taxes. I've heard that the communist party taxes business owners pretty heavily in China which is somewhat of a deterrent to doing trade there, but obviously, the higher taxes is offset by the lower cost of living (rent, food etc), which i'd assume would be more expensive in Japan. But anything you might know would be helpful.
 
No Japan does not make it particularly hard to start a business if you have the money to do so, however this has come down in recent years. It will depend on what type of company you want to start that will decide the level of diffuculty. One the thing that you should be able to understand Japanese to fill out the required forms to get the ball rolling. If you don't you will need to employ someone who can. On top of this ,once you are set up you will have to get yourself updated on the laws and requirements for employing staff here, plus the laws when it comes to taxation. You will be taxed the same as any other Japanese company, but I would imagine it would not be as much a China(I can give you an answer there b/c I do not know the tax rate in China)

Anyway that is a breif outline, if you want me to elaborate let me know. I don't know if you can say, but what exactly are you thinking of doing?
 
You may want to read the SOHO forums and FAQ on www.gaijinpot.com and solicit advice from a woman called Trip Hop there. Very knowledgeable in many areas/businesses.

Also, I advise you to read www.daijob.com and the articles by Terrie Lloyd there.
 
I have just been informed that for any foreign person wishing to start a company in China, the initial start up costs can range anywhere between AUD$5 000-$50 000.

Just briefly; the business idea revolves around using the information and experience gained by my partner in her PhD research. The business would primarily service corporate clients and would consist of myself, my partner and probably a local, bilingual administrative assistant.
 
If you were already working here and set up the business on the side, it could save you money for accomodation in the initial stages. From what you say it could take a while to get something like that out there for the people to see as with any consulting business that is. THe actual startup cost of a business has changed quite a lot since I have been here and under the old legislation, joint-stock companies(Kabushikgaisha) and limited-liability companies(Yugengaisha) were required to have capital funds of at least 10 million yen(approx $100,000)and 3 million yen(approx $30,000), respectively. Under the new law, these companies can start with capital of even just one yen. However companies with net assets of less than three million yen may not pay out dividends from their capital surpluses. But don't think this means that it will be really cheap to set up a business b/c of this, why I say this is because of all the forms and red tape that is needed to go through needs a good grasp on this language plus the waiting periode while these formalities are taken care of. If you can't do the paperwork yourself you will need to contract someone to do it for you and that will cost a few thousand dollars.

You will also need to consider letting a place for conducting business, this could also pose some problems if you are not taliking to the right people. Also, a security payment(bond) sometimes needs to be made in advance and this could also run into the thousands

Also as of june last year limited-liability companies can not been made any more and with that comes the disadvantage that in a joint-stock companie you will need 3 or more dirrectors.

You will aslo need to consider the type of visa you will be comming in on, as this will affect you and your ability to stay and run your business here in Japan.

One last thing, I am not sure if you are aware but the way business is run over here is very unique and you will deffinately need the help of a local who is in the know. However, someone who has good qualifications can be quite expensive in regards to their wage, but could be a necessity they you will need to consider. It has taken me almost 10 years in my business to have a relatively reasonable grasp on how things are done here.

My advise at this point is make sure you have done the appropriate market share studies and consult with someone who is qualified and has an understanding of business over here. Don't think I am trying to scare you off, I only want you to look at every possible angle before you risk your money, b/c you can be rewarded very well over here.
 
Thanks for that informative post Dave.

You went to great detail in creating a corporation, but what if you want to set up a proprietorship? Would one still need to do all that vigorous filing?
 
Here's how I set up my corporation:

1: Hired a guy to do it
2: Payed him (well, will when it's all done).

Rough costs are 300,000 yen for the licenses, 100,000 yen for the leg work. All deductable, of course.
 
Thanks for that informative post Dave.
You went to great detail in creating a corporation, but what if you want to set up a proprietorship? Would one still need to do all that vigorous filing?
I hope you can read Japanese, b/c these forms are all you need for starting a Proprietorship here in Japan. Very simple compared to a corporation.

ナ?J窶ケテ??愿債出ツ鞘? ナ?J窶ケテ??啀ニ停?毒椎スヒ?遺?愿?窶堙俄?凖アツ出
ナ陳ク窶ーツソツ焦セ窶ケp窶「テサ窶邸窶堙娯?愿債出ツ鞘? ナ?J窶ケテ??堙娯?披?壺?扼窶堙娯?啌ナ椎ス窶啀窶啜窶愿コ窶堙懌?堙??堙俄?凖アツ出
窶僮窶ーツオナス窶佛スY窶堙娯?「]窶ーツソ窶「テサ窶邸窶堙娯?愿債出ツ鞘? ナ?J窶ケテ??堙娯?披?壺?扼窶堙娯?啌ナ椎ス窶啀窶啜窶愿コ窶堙懌?堙??堙俄?凖アツ出
窶猫窶ーツソツ湘佛停?昶?堙娯?「]窶ーツソ窶「テサ窶邸窶堙娯?愿債出ツ鞘? ナ?J窶ケテ??堙娯?披?壺?扼窶堙娯?啌ナ椎ス窶啀窶啜窶愿コ窶堙懌?堙??堙俄?凖アツ出
窶ケ窶ケ窶膿ナスx窶「ツ・ナス窶凪?督アツ焦?窶懌┐窶堙固?Jツ静昶?愿債出ツ鞘? 窶ケ窶ケ窶膿ナスx窶「ツ・窶堋「窶堋ゥ窶堙ァ窶啀ニ停?毒椎スヒ?遺?愿?窶堙俄?凖アツ出
ツ静つ色ツ申ツ債青渉ウ窶戳ツ申ツ青ソツ鞘? ナ?J窶ケテ??啣ニ停?毒椎スヒ?遺?愿?窶堙俄?凖アツ出
ツ静つ色ツ静ェツ従ナステ停?ケ窶ケ窶膿窶堙嫁?テ問?堋キ窶堙ゥ窶愿債出ツ鞘? ナ?J窶ケテ??啣ニ停?毒椎スヒ?遺?愿?窶堙俄?凖アツ出
 
Obviously very recently then?

Received the final documents today. Don't even have my houjin account.

ナ?J窶ケテ??愿債出ツ鞘? ナ?J窶ケテ??啀ニ停?毒椎スヒ?遺?愿?窶堙俄?凖アツ出
ナ陳ク窶ーツソツ焦セ窶ケp窶「テサ窶邸窶堙娯?愿債出ツ鞘? ナ?J窶ケテ??堙娯?披?壺?扼窶堙娯?啌ナ椎ス窶啀窶啜窶愿コ窶堙懌?堙??堙俄?凖アツ出
窶僮窶ーツオナス窶佛スY窶堙娯?「]窶ーツソ窶「テサ窶邸窶堙娯?愿債出ツ鞘? ナ?J窶ケテ??堙娯?披?壺?扼窶堙娯?啌ナ椎ス窶啀窶啜窶愿コ窶堙懌?堙??堙俄?凖アツ出
窶猫窶ーツソツ湘佛停?昶?堙娯?「]窶ーツソ窶「テサ窶邸窶堙娯?愿債出ツ鞘? ナ?J窶ケテ??堙娯?披?壺?扼窶堙娯?啌ナ椎ス窶啀窶啜窶愿コ窶堙懌?堙??堙俄?凖アツ出
窶ケ窶ケ窶膿ナスx窶「ツ・ナス窶凪?督アツ焦?窶懌┐窶堙固?Jツ静昶?愿債出ツ鞘? 窶ケ窶ケ窶膿ナスx窶「ツ・窶堋「窶堋ゥ窶堙ァ窶啀ニ停?毒椎スヒ?遺?愿?窶堙俄?凖アツ出
ツ静つ色ツ申ツ債青渉ウ窶戳ツ申ツ青ソツ鞘? ナ?J窶ケテ??啣ニ停?毒椎スヒ?遺?愿?窶堙俄?凖アツ出
ツ静つ色ツ静ェツ従ナステ停?ケ窶ケ窶膿窶堙嫁?テ問?堋キ窶堙ゥ窶愿債出ツ鞘? ナ?J窶ケテ??啣ニ停?毒椎スヒ?遺?愿?窶堙俄?凖アツ出

Almost looks like Chinese, don't it.
 
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