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Plan to start own buisness, but hardly enough money

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  • Plan to start own buisness, but hardly enough money

    Hi guys. I just lost my job recently due to my previous company going bankrupt,
    so now I am exploring the options I have. My main desire would be to set up my
    own company here, but after consulting a company that helps to set up companies
    for foreigners, I realised that not only do I not have the 5 million yen capital, I
    also do not have enough to pay that company for using their services (if i decide
    to use their services).

    Before I give up on trying to set up my own company here, I would like to know
    if there were any people like me (wants to start own company but not enough
    cash) and what you did in the end. Did you give up? Did you borrow the cash?
    Or did you save up everything by yourself?

    Lastly, are there any other types of companies that a single person can start
    up here in Japan other than Kabushiki Gaisha?

    Thanks for reading this.

  • #2
    Business plan? Product? Kickstarter may be your friend...

    Comment


    • #3
      Originally posted by D.capypara View Post
      Lastly, are there any other types of companies that a single person can start
      up here in Japan other than Kabushiki Gaisha?

      Thanks for reading this.
      If you are a sole operator you can start as a kojin kigyo by filing the papers at the tax office. It is used when you are the sole operator and there are no partners in your business. No capital investment is required either.

      I fail to see how you will get a business off the ground though if you have no cashflow.

      Comment


      • #4
        Originally posted by edin“๚–{ View Post
        Business plan? Product? Kickstarter may be your friend...
        It falls into the category of –fˆี. To keep it simple the plan is just to
        export Japanese stuff out to other countries and import stuff from
        other countries into Japan.

        Comment


        • #5
          Originally posted by KansaiBen View Post
          I fail to see how you will get a business off the ground though if you have no cashflow.
          Exactly, which is why I would want to hear how some of you guys who have started your
          own business, how you did it if you had no capital.

          Comment


          • #6
            Originally posted by D.capypara View Post
            My main desire would be to set up my
            own company here, but after consulting a company that helps to set up companies
            for foreigners, I realised that not only do I not have the 5 million yen capital, I
            also do not have enough to pay that company for using their services (if i decide
            to use their services).
            Seems you ONLY need the Y 5 mio capital if your new company is also supposed to be the visa sponsor. Check here :

            "Requirements for the Investor/Business Manager Visa
            The Investor/Business Manager Visa tends to have higher hurdles than most of the other types of visas. Therefore just satisfying the incorporation requirements specified in the Companies Act will not be enough to qualify for applying for this visa. There are of course many requirements; however the following two must be given consideration during the incorporation process.

            Minimum capital requirement: As a benchmark anyone considering applying for the Investor/Business Manager Visa will need to incorporate the company with a minimum of 5 million yen initial registered capital or an equivalent cash investment.
            Registered office: When applying for this visa, in principle a residential address may not be used for the registered company address. There is a requirement that the space used for the office is distinctly separate from any living space and that property lease agreements clearly state that the property is designated for Commercial Use. "

            http://injapan.gaijinpot.com/live/vi...-manager-visa/

            Comment


            • #7
              Originally posted by D.capypara View Post
              Exactly, which is why I would want to hear how some of you guys who have started your
              own business, how you did it if you had no capital.
              Depends on what kind of business you are planning to do. If you are selling products you can get customers to pay cash up front but its a good idea to have some inventory. I would not allow more than a week between receiving money and customer receiving product.

              Get an overdraft facility on a Japanese credit card. Keep in mind you will pay 18-20% a year for the use of someone else's money.

              Approach a bank for an unsecured loan. May be difficult if you have no banking record in Japan.

              People want to be paid before they sell you products or as soon as they provide you services. If you have no capital its hard to see how you can be in business unless you borrow the money from somewhere.

              Comment


              • #8
                Originally posted by KansaiBen View Post
                People want to be paid before they sell you products or as soon as they provide you services.

                Typical contract terms between companies in Japan are yoko-barai (pay at the end of the month following receipt of invoice) or yoko-yoko-barai ( (pay at the end of two months following receipt of invoice).

                Of course, you need to establish credibility, often in the form of submitting documentation on your business, financial status, etc.. Much easier between companies. If this is just on an un-secured personal basis, mae-barai (payment in advance) is required.

                Comment


                • #9
                  Originally posted by trip_hop View Post
                  Of course, you need to establish credibility, often in the form of submitting documentation on your business, financial status, etc.. Much easier between companies. If this is just on an un-secured personal basis, mae-barai (payment in advance) is required.
                  They will want to know of course that you will still be in business when it comes time for you to pay them.

                  My guess is its unlikely they will extend credit to a fledgling company unless they know you have something to back it up such as security or financial assets.

                  When I order stuff from Amazon I usually have to pay by credit card first before they send me anything. When I did MLM I would have to buy the products first before selling them again, it was hard to get people to pay upfront when they ordered from me though.

                  Comment


                  • #10
                    Originally posted by KansaiBen View Post
                    My guess is its unlikely they will extend credit to a fledgling company unless they know you have something to back it up such as security or financial assets.
                    You'll often find in business here that a first time transaction requires payment up front, but that subsequent transactions follow Japanese payment systems, subject to established limits.

                    Comment


                    • #11
                      Originally posted by D.capypara View Post
                      It falls into the category of –fˆี. To keep it simple the plan is just to
                      export Japanese stuff out to other countries and import stuff from
                      other countries into Japan.
                      Strong yen may make exporting a pain in the arsehole (depending on what you are exporting duh).
                      Fred
                      PS providing a service requires very little start-up capital duh.

                      Comment


                      • #12
                        Originally posted by shonanfred View Post
                        Strong yen may make exporting a pain in the arsehole (depending on what you are exporting duh).
                        Perhaps, but if your margin is big enough...

                        Comment


                        • #13
                          I think most of us got into business because we saw a niche where the Japanese weren't offering a product or felt we could do it better than the Japanese. What you are looking to do is something sites like Rinkya has already got covered.

                          In my case I started out by bringing in seeds to Japan of plants such as herbs. I concentrated on bringing in the unusual ones such as the really hot peppers, ethnic herbs such as Thai basil etc. I've seen my market dwindle as more and more of the big seed companies have moved in and taken over this market.

                          I've been doing likewise with tropical fish for years and have built up a market which is now being undercut by the economy and the power supply situation.

                          In my case I haven't relied upon bank loans, I've saved, scrimped, bought used equipment and worked on building a market.

                          Comment


                          • #14
                            Originally posted by shonanfred View Post
                            Strong yen may make exporting a pain in the arsehole (depending on what you are exporting duh).
                            Fred
                            PS providing a service requires very little start-up capital duh.
                            If your Japanese is good, you can also start with translation service which will cost you almost nothing.

                            Comment


                            • #15
                              Originally posted by hml View Post
                              Perhaps, but if your margin is big enough...
                              So...buy something in yen, add a margin and then sell it abroad?
                              Fred

                              Comment

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