Starting a small business is not an easy feat. It involves money, time, dedication, luck, hard work, passion, and most importantly, the knowledge to make your business a success. If you are thinking of creating a business abroad, it is understood that the risks are greater of starting fresh in a foreign country. However, only you can tell if this is the right decision for you to take and whether the risks of building a business in a foreign land are worth it.
Japan is the second highest-ranking country in Asia when it comes to global competitiveness. Many expats are attracted to opening a business in Japan because of this and many have met success in their venture.If you want to try your luck in the land of the sun, here are just a few things you should know.
The first thing that you have to overcome when starting a new venture is the legalities. Understanding the laws and regulations that apply to you and your business is of utmost importance if youâ€™re in it for the long haul. Think about what type of corporation structure you want to adopt and figure out the requirements to make it happen. There are four types of business structures in Japan â€“ Kabushi-Kaisha (KK), Limited Liability Company or Godo-Kaisha, Limited Partnership Company or Goshi-Kaisha, and General Partnership Company or Gomei Kaisha. Each will have their own strengths and weaknesses that only you can determine whether it would be fit to your business model.
Make sure to look up the requirements for establishing your business office as well as your visa. A foreign national registered as a long term or permanent resident, as well as a spouse or child of a Japanese national, will have an easier time of starting a business in Japan. Otherwise, you may need to apply for an investor or business manager visa. The cost of doing so will depend on the scale of your business, as well as your office rental fees, employeesâ€™ salaries, office equipment and so on.
You donâ€™t have to live in Japan to do business in the land but depending on the type of your business, it might be best for you to stay. When youâ€™re granted an investor or business manager visa, you will also get a residence card so you can secure your office space and open a local bank account.
Itâ€™s valuable to get a trusted lawyer and financial advisor at this point because theyâ€™ll know the rules better than you do. Dealing with taxation and business laws is complex enough as it is without the language barrier so itâ€™s best to consult the matter with experts.
When youâ€™ve jumped through all the hoops in starting your business, itâ€™s time to get on your feet and make your dream happen! Whether youâ€™re in the business of selling home appliances, electronic gadgets, food, fashion, cosmetics, or anything in between, knowing how to attract your potential market and making them your loyal customers will be the key to your success.