Starting a Business and Obtaining Licenses in Japan
Starting a business in Japan means figuring out whether you need a license or permit, as the requirements vary depending on the type of business. Some businesses can start right away, while others need approval or registration with government authorities. This guide will help you determine if you need a license, understand the process, and prepare for a smooth application.
1. Determine Whether a License Is Required
Researching License Requirements
Internet Search: Use keywords such as the business type, product name, or service name to search for information. Relevant government websites or those managed by professional administrative scriveners may provide details on licensing requirements. Example keywords: "cosmetics license Tokyo."
Government Agency Consultation Services: Local governments, chambers of commerce, and organizations such as SME Support Japan offer consultation services for entrepreneurs. It can guide you through licensing requirements and provide general startup assistance.
Consult Industry Peers: Speaking with others already operating in the same industry can provide valuable insights into whether a license is required. Always verify the information through additional research to ensure its accuracy is recommended.
2. Understanding Licensing Procedures and Requirements
If your business requires specific licenses, you will need to gather detailed information about the application process, conditions, and required documentation.
Identify the Responsible Authority
Government websites often offer comprehensive details, including guidelines, downloadable forms, and instructions for submitting applications. If anything is unclear, contacting the relevant authority directly can provide further clarification.
Pre-Application Consultations: Some authorities require mandatory consultations before they accept applications.
Complex Terms: If explanations or legal jargon seem unclear, consulting industry experts or professional administrative scriveners is recommended.
Professional and Non-Governmental Support
Professional organizations and experts can simplify the process by:
Breaking down complex licensing requirements.
Assisting with paperwork preparation.
Providing direct consultation services tailored to your specific business needs.
3. Preparing for Business Licensing
Proper preparation is key to ensuring a smooth licensing process. Factors to consider include personnel, finances, location, and compliance with government regulations.
Personnel Requirements
Qualified Personnel: Some licenses require specific qualifications, such as national certifications, completion of training, or relevant work experience.
Disqualification Conditions: Individuals must not fall under disqualification conditions (e.g., being a minor ward, bankrupt, or affiliated with antisocial groups).
Financial Requirements
Sufficient Funds: Applicants must demonstrate financial capacity, including corporate assets or bank balances (evidence such as bank statements may be required).
Fee Payments: Registration fees, license taxes, and membership dues for industry associations may be required.
Time Requirements
Application Scheduling: Some licensing processes require appointments, and approval may take weeks or months.
Approval Timelines: While some licenses are granted immediately, others may require several months for review and approval.
Geographic and Location Requirements
Zoning Regulations: Business activities may be restricted based on land use zones.
Proximity Restrictions: Certain businesses cannot operate near schools or childcare facilities.
Office and Facility Conditions
Office Standards: Office size, layout, and privacy standards may also be prerequisites for licensing approval.
4. Key Considerations for Business Preparation
Getting a business off the ground means gathering key resources like staff, workspace, and funding. These aren’t just essential for running the business—they’re also important for meeting licensing requirements. Doing your homework and planning will help things run smoothly and keep you compliant.
In Japan, starting a business takes careful preparation, especially when licenses are involved. By understanding the requirements, seeking expert advice, and preparing properly, entrepreneurs can streamline the process. Good preparation not only ensures compliance but also lays the foundation for a successful business.
Resources:
https://www.moj.go.jp/EN/MINJI/index.html
https://www.nta.go.jp/english/index.htm
https://www.mhlw.go.jp/english/
https://www.mlit.go.jp/en/index.html
https://www.jetro.go.jp/en/invest/