Did you know that in Japan you can set up your own individual business similar to MEI in Brazil (Micro Entrepreneur Individual)? Creating an individual company in Japan is called Kojin Jigyo (個人 事業) which literally means (事業) project, enterprise, business, industry (個人) individual.
Like the MEI, the “kojin jigyo” does not require initial capital, does not have expensive courses and taxes and no bureaucracy. Professionals who earn a lot of money working as self-employed need to have this record. It is not necessary to have a commercial point and you can have your small business even if you are in another job (see contract).
Photographers, designers, hairdressers, private teachers, accountants, consultants and foreign and Japanese freelancers often resort to “kojin jigyo”. Before starting a big company, the individual business is the gateway that offers many benefits for foreigners, descendants and Japanese.
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Kojin Jigyo Benefits and Requirements
Having an Individual Business in Japan allows for some requirements such as:
- You can use a business name;
- You won't spend money on an accountant (spending exceeds 200,000 per year);
- Bank Loan with just 2% interest per year;
- Professional credibility (to close large contracts);
- Tax discounts if you stay within days with your statement;
- Support and information about individual companies;
- Despite being a sole proprietorship, you can hire employees;
Some requirements and information you need to know about setting up your micro-enterprise in Japan:
- you need some visa long-term stay or that allows paid activities;
- Some use the Kojin Jigyo to obtain a visa, this is possible when you have contracts or partnerships with other companies;
- You need specific authorization in certain types of businesses;
Starting a Solo Business in Japan
To declare yourself as a kojin jigyo, simply fill out a form and send it to the nearest tax office. You must choose the correct form for your prefecture and follow the indicated address or call to clarify your last doubts. Remember that all procedures are conducted in Japanese.
Once that's done, just make sure you keep all your payments on record, either on the blue (detailed) or white sheet. Annually declare income tax as usual. Fortunately, one of the advantages is that you can subtract company expenses to pay less taxes, as is the case with MEI.
If you work as a photographer, you won't have to pay tax on the expensive camera and other equipment you buy. If you use a computer or even a cell phone for work, buy it for work and enjoy it for fun. Even food and transport can be included in your individual company expenses.
Of course, not everything is rosy, we recommend you check all the details and not fill out any paperwork without being aware of becoming a Kojin Jigyo. Unfortunately, some end up declaring bankruptcy due to not knowing how to manage their individual business well, we don't want that to happen to you!
Setting up your own business can be a great opportunity to get out of the factories and keep your visa to live in Japan. You can still keep your job and create your business, but remember to talk to your boss, immigration, city hall and all the responsible bodies to get your questions answered.
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