View Working:Running Your Own Business
An increasing number of Western women in Japan are running their own businesses. Some of these businesses are fairly large, incorporated companies that are successful enough to provide a secure income and a visa. Most are part-time, small, home-based businesses with no official status. Japan can be a great place to start a business like this because fairly high incomes from other work (especially English teaching with flexible hours) can help to fund your venture, as well as provide a visa and security in times of difficulty. Many women who would never have considered themselves ‘entrepreneurs’ often find themselves creating their own businesses in Japan.
Smaller businesses that generate less than three million yen a year don’t need to be incorporated formally in Japan. In fact, most Japanese lawyers say that businesses don’t need to incorporate unless it generates a profit of ten million yen a year. But small businesses do need to file tax returns every March. In this situation, hire a Japanese accountant to prepare all documents necessary for the tax office or hope that a friendly tax officer will assist you in completing the forms.
There are three types of ‘formal’ businesses in Japan, each one requiring a different amount of ‘start-up capital’, which actually only has to sit in the bank for a week. There are several business consultants/lawyers who can help you through this process, including lending you the money needed just to get through the paperwork.
Regarding start-up capital, most Western women let their businesses start slowly, and allow the income generated to determine the rate of growth. Work out how much money you will need to get started; in most cases having enough to cover printing costs for business cards and publicity material and the fees for some networking meetings is sufficient. Depending on the nature of your business, you may require a more substantial amount of money, and if you are not in a position to use your own money, then you need to look for investors or approach a bank. Japanese banks will extend low-interest loans for business purposes to foreigners, but getting the bank to agree to the loan is a long and difficult process. You will need a Japanese guarantor and must provide a detailed explanation (in Japanese) of why you need the money.