The Procedures When Foreigners Become a Sole Proprietor in Japan

【Koshida Accounting Firm Column Date:

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


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


If you are unclear about the procedures for sole proprietors in Japan, you might find this blog helpful.




Reporting the Establishment of an Individual Business to the Tax Office

First, you need to report the establishment of an individual business to the tax office. Usually, you also apply for blue tax return status. If you employ staff, submit a notification of the establishment of a salary-paying office. You can choose your local tax office concerned either based on your home or office address.


The blog post below provides detailed information about the Blue Tax Form.


Enrolling in Social Insurance

You need to enroll in the National Pension and National Health Insurance. Foreigners with residency in Japan are generally obligated to join these social insurance programs. The procedures for both can be carried out at your local ward office or other administrative office associated with your residence.


The blog post below provides detailed information about social insurance.


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.