Did you know that in Japan you can set up your own individual business similar to MEI do Brasil (Individual Micro Entrepreneur)? Setting up a sole proprietorship in Japan is called Kojin Jigyo (個人 事業) literally meaning (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.
Benefits and Requirements of Kojin Jigyo
Having an Individual Business in Japan allows for some requirements such as:
- You can use a business name;
- You will not spend on accountant (expenses exceed 200,000 per year);
- Bank loan with only 2% of interest per year;
- Professional credibility (to close large contracts);
- Tax discounts if you stay in days with your declaration;
- Support and information about individual companies;
- Despite being an individual business, you can hire employees;
Some requirements and information you need to know about setting up your microenterprise in Japan:
- You need some visa long-term 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;
Opening an Individual Business in Japan
To declare yourself as a kojin jigyo just fill a form and send it to the nearest tax office. You must choose the correct form for your province and go to the indicated address or call for any further questions. Remembering that all procedure is done 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 flowers, we recommend you to see all the details and do not fill out any paperwork without being aware of becoming one. Kojin Jigyo. Unfortunately some end up declaring bankruptcy for not knowing how to manage their individual company 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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