What should I consider when relocating my business to Japan?

• Jul 15, 2024
• By OPEN WORLD

Relocating your business to Japan is a significant decision that requires careful planning and consideration. Here are some key factors to keep in mind:

1. Visa and immigration requirements: Ensure that you and your key employees are eligible for the appropriate visas to live and work in Japan. Research the requirements for visas such as the business manager visa, intra-company transferee visa, or highly skilled professional visa. Consult with an immigration lawyer or a visa specialist to guide you through the process.
2. Business structure and registration: Determine the most suitable business structure for your company in Japan, such as a branch office, subsidiary, or joint venture. Each structure has its own legal and tax implications. Register your business with the appropriate authorities and obtain necessary licenses and permits.
3. Office space and location: Identify the ideal location for your business based on factors such as target market, accessibility, and cost. If you require a visa to reside and conduct your business in Japan, a virtual office or co-working membership will not suffice to meet visa requirements.  Research real estate options and engage with local property agents to find suitable premises.
4. Human resources and employment: Familiarize yourself with Japanese labor laws and regulations, including minimum wage, working hours, and social insurance obligations. Develop a plan for hiring local staff or transferring existing employees to Japan. Consider partnering with a local HR services provider to navigate complex employment matters.
5. Cultural adaptation and language barriers: Prepare yourself and your team for cultural differences in business practices, communication styles, and social norms. Invest in language training and cross-cultural training to help bridge any gaps. Hire local experts or advisors who can provide guidance on navigating Japanese business culture.
6. Taxation and financial management: Understand the Japanese tax system, including corporate tax, consumption tax, and local taxes. Set up appropriate financial management systems and engage with local tax advisors and accountants to ensure compliance and optimize your tax position.
7. Supply chain and logistics: Assess the impact of relocating on your existing supply chain and logistics arrangements. Identify local suppliers, distributors, and logistics partners who can support your operations in Japan. Consider the cost and time implications of importing or exporting goods.
8. Intellectual property protection: Protect your company’s intellectual property, such as trademarks, patents, and copyrights, in Japan. Register your IP with the appropriate authorities and take steps to safeguard trade secrets and confidential information.

At OPEN WORLD, we provide comprehensive support for businesses relocating to Japan. Our team can assist with visa and immigration matters, business registration, office setup, HR services, and cultural adaptation. By leveraging our local knowledge and network, we can help ensure a smooth and successful transition for your business in Japan.