Did you know that in Japan you can set up your own individual business similar to MEI do Brasil (Individual Micro Entrepreneur)? Creating a sole proprietorship in Japan is called Kojin Jigyo (個人事業) which literally means (事業) project, undertaking, 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:
- Pode usar um nome comercial;
- Você não vai gastar com contador (gastos ultrapassam 200.000 por ano);
- Empréstimo Bancário com apenas 2% de juro ao ano;
- Credibilidade profissional (para fechar grandes contratos);
- Tax discounts if you stay within days with your statement;
- Suporte e informações sobre empresas individuais;
- 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 de longa permanência ou que permita atividades remuneradas;
- Some use the Kojin Jigyo para obter o visto, isso é possível quando se tem contratos ou parcerias com outras empresas;
- You need specific authorization in certain types of businesses;
Starting a Solo Business in Japan
To declare yourself as a kojin jigyo it is enough fill out 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 rosy, we recommend you to see all the details and not fill out any paperwork without being aware of becoming a 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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