I used to work as an adviser at Tokyo One-Stop Business Establishment Center. Many foreign nationals came to seek legal advice on how to set up a company in Japan, especially in Tokyo.
Setting up a company is an option to do business, but working as a sole trader is another option. A sole trader is a business that is owned and run by one person. There is only one owner, but they may have employees who work for them. Sole traders are usually start-ups or small businesses. Sole traders have unlimited liability and the owner is personally responsible for the debts of the business. A sole trader pays income tax on their earnings.
A sole trader calculates the amount of income earned during the year from 1st January to 31st December of each year and the amount of income tax, and must file a tax application form at a tax office between 16th February and 15th March of the following year.
It has the risk of unlimited liability and there is a high level of responsibility for the business owner, but it is quick and easy to set up and has low set-up costs.
I hope the information is useful.
I will update every Monday.
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Japanese business consultant