After registering a company in Japan, applying for several licenses and permits with the Japanese government is necessary. In order to operate in specific industries, businesses in Japan frequently need to get licenses and permissions.
The time required to receive a license can vary depending on the industry, but it often takes two to three months. It is therefore highly recommended to apply for the company license in advance. Starting a business or conducting operations without a license most likely will result in the shutdown of the enterprise or serious financial penalties.
The business license is the first license given to a firm that the Japanese Companies Registrar has recorded as evidence. Upon successful completion of the business’ incorporation with the Trade Register, the tax authorities, and the social security authorities, this license is granted.
For certain businesses, obtaining a business license is the only authorization needed to begin operations in the Japanese market.
If you wish to incorporate a new company in Japan, refer to Japan company registration to know more.
FOLLOWING ARE THE MOST COMMON BUSINESS LICENSES IN JAPAN
Recruitment business
In Japan, there is a severe labour shortage at the moment. And the nation is having trouble finding qualified workers. The government had hoped that more people would take advantage of the new visa status that was made available to foreigners last year who came to work in specific industries.
Over the previous 12 months, just 3,987 workers registered for the program, which is less than 10% of the expectations of the Japanese government. Because of this, it would be a smart idea to launch a recruitment agency in Japan or to grow an already-existing company into a new market.
By bringing in highly skilled foreign workers and introducing them to Japanese businesses, the applicant can earn money. Up to 30% of the employee’s yearly income could be charged as an entrance fee.
By bringing in highly skilled foreign workers and introducing them to Japanese businesses, you can earn money. Up to 30% of the employee’s yearly income could be charged as an entrance fee. Your company’s commission might go up to $3,000,000. For example, if the annual salary of such a worker is $10,000,000.
The applicant would need to receive the Eigy Kyoka or special permit from the Japanese government in order to launch a recruitment firm. The same holds true for hiring staff members and sending them to Japan.
Alcohol selling business
If the applicant wants to launch an alcohol-selling business in Japan, they must first obtain a Japanese government license to sell alcohol. They may import wine or other alcoholic beverages to sell to restaurants or to the general public directly. The same rules apply to people who wish to engage in export-related operations and ship goods created in Japan, such as sake (nihonshuu), abroad. The following licenses are required:
- Alcohol licensing in Japan
- Wholesaler liquor license in Japan
Restaurant business
Similar to how Western countries have seen an increase in the appeal of Asian foods and cuisines, Japan has seen an increase in the popularity of European and American products. By conducting market research, the applicant might be able to identify a market niche and introduce Japanese buyers to their regional specialities.
For the same reason, the applicant can try importing tobacco items like cigarettes and cigars that are made in Europe or America, and they must acquire the necessary licenses, such as a Japanese license for tobacco or a license for food importation.
Any foreigner may operate such a business as long as they get the necessary licenses.
Running schools
Foreign nationals are now residing in Japan in greater numbers each year. Some of them travel to Japan to work for businesses with only English-speaking divisions. For instance, designers, IT experts, IT engineers, and other international workers holding comparable professions may be able to get by with basic conversational Japanese (up to N4).
They will probably look for ways to enhance their Japanese and that is why Japanese language schools are so popular. Since students would pay monthly or annually once they register for the sessions, operating such a school could prove to be highly successful.
On the other hand, some Japanese parents want to help their children become bilingual by enrolling them in a nursery school or daycare, where classes are taught in English. So, if the applicant has the necessary experience and is able to hire the right personnel, they can open an international nursery.
Second-hand dealer license
The ability to draw on business ties from one’s home country is one of the main benefits of launching a business in Japan. Because of Japan-made products’ rising appeal in the West, their worth on the market can be rather high. Of course, assuming the applicant has identified the ideal market niche for their product or service.
Buying used items and second-hand goods, notably pre-owned cars, and reselling them in their native country may be highly profitable. Particularly when it comes to exporting used automobiles produced by renowned Japanese automakers (such, for instance, Toyota, Nissan, or Honda).
Without any reliable business contacts, average Japanese enterprises frequently fail to reach new markets. If the applicant plans to open a second-hand automobile business in Japan, they must first obtain the necessary license, known as a second-hand dealer license.
Our team of professionals will guide you through the process of applying for the most appropriate license for your business activities. Reach out to us at Relin Consultants – Leading Global Business Set Up Partners to get your business license in Japan.
