Business in Japan: Sole Proprietorship

Sole Proprietorship (kojin kigyou/個人企業) is the most cost-effective and simplest way to establish a business in Japan. It is best for small businesses, because it involves full liability in the event of bankruptcy of the business. Essentially, it involves establishing oneself as a corporate entity.

Establishing Sole Proprietorship is easy. One has only to visit their local tax office (zeimusho/税務署) and submit a notification of starting a business (個人企業開始届). When filing taxes at the end of the fiscal year, a decision will need to be made as to whether to file The Blue Tax Form (aoiro shinkoku/青色申告) or The White Tax Form (shiroiro shinkoku/白色申告).

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