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.
Just like the MEI, the “kojin jigyo” does not require initial capital, has no expensive courses and taxes, and no bureaucracies. Professionals who earn a lot of money working as freelancers need to have this registration. It is not necessary to have a commercial point, and you can have your small business even while being employed elsewhere (check your contract).
Photographers, designers, hairdressers, private teachers, accountants, consultants, and both foreign and Japanese freelancers often resort to “kojin jigyo”. Before starting a large company, the individual business is the gateway that offers many benefits for foreigners, descendants, and Japanese.
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Benefits and Requirements of Kojin Jigyo
Having an Individual Business in Japan allows for some requirements such as:
- You can use a trade name;
- You won’t spend on an accountant (expenses exceed 200,000 per year);
- Bank loan with only 2% interest per year;
- Professional credibility (to close large contracts);
- Tax discounts if you stay up to date with your declaration;
- Support and information about individual businesses;
- Although it is an individual business, you can hire employees;
Some requirements and information you need to know about setting up your microbusiness in Japan:
- You need a long-term visa or one that allows paid activities;
- Some use the Kojin Jigyo to obtain the visa, this is possible when you have contracts or partnerships with other companies;
- You need a specific authorization for certain types of businesses;
Opening an Individual Business in Japan
To declare yourself as a kojin jigyo, just fill out a form and send it to the nearest tax office. You must choose the correct form for your province and follow the indicated address or call to clarify your last doubts. Remember that all procedures are done in Japanese.
Once that is done, just make sure to keep all your payments recorded, on the blue sheet (detailed) or white. Declare your income tax annually as usual. Fortunately, one of the advantages is that you can deduct business expenses to pay less tax, just like in MEI.
If you work as a photographer, you won’t need to pay tax on the expensive camera and other equipment you buy. If you use a computer or even a phone for work, buy it for work and enjoy it for fun. Even food and transportation can be included in your individual business expenses.
Of course, not everything is perfect; 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, and we don’t want that to happen to you!
Starting your own business can be a great opportunity to get out of factories and maintain your visa to live in Japan. You can still keep your job and create your business, but remember to talk to your employer, immigration, city hall, and all responsible agencies to clarify your doubts.
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