How to Immigrate to Japan for a Small Business Owner

Hello, my name is Taisei Koshida, and I am a certified public accountant and tax accountant.

I aim to assist non-Japanese business owners who need help with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.

Not a few business owners want to immigrate to Japan. Information technology-related businesses, such as website builders and web engineering businesses, are more likely to fulfill this desire because they can conduct business anywhere in the world. In this blog, I will explain how to go forward with this.

1. Establishment of a Company

First, you have to establish a company in Japan. You can proceed as a sole proprietor, but establishing a company is better for getting a management visa.

2. Getting a Management Visa

Then, you will get a management visa. The procedures for establishing a company and getting a management visa should be proceeded at the same time. The Japanese company has to pay you some salary as a directer’s fee of at least around 3 million yen annually to get and renew a management visa.

3. Starting Proceeding Your Business Through a Japanese Company

There are a few ways to manage a company in your home country and a Japanese company. If you select any option, the Japanese company must make certain sales and profit to can pay your salary to get and renew a management visa.

– Lying dormant a company in the home country

You must contractually move all existing clients to a Japanese company from a company in the home country. However, problems might happen, such as international remittance and disapprovals from your clients. In light of them, the next scheme may be better.

– Giving a role to a Japanese company as an outsourcer

With keeping existing work in the company in the home country, you will leave a certain work to the Japanese company. However, you should set fair prices between the two companies to avoid transfer pricing taxation. Besides, you should confirm whether there are any tax risks to this scheme in your home country. The applications of an international treaty may be refused because the establishment in Japan is considered unreasonable.
In this case, you might as well stop paying your salary from the company in your home country, considering that you will get your salary from the Japanese company.
By the way, basically, double taxation is solved by foreign tax deductions to some extent.

Our accounting and tax office has been actively assisting foreign business owners in Japan with accounting and tax matters. Also, not only in the tax and accounting field, our office can support your business in Japan in the fields of visa, registration, social insurance, and law by networking with specialists. Plus, we have networked with specialists in web marketing, building websites, and business consulting suitable for Japanese customers. All services are provided in English. Please feel free to reach out to us through the inquiry form.