The third largest economy in the world is Japan and more and more businesses are being pulled to Japan’s shores to work into its lucrative consumer market and economy. However, Japan is in 114th place for ease when it comes to making business. That’s why having a Japanese help for overseas ventures is important for a successful business in Japan.
Making Business In Japan
Differences in language is not the only challenge when it comes to making business in Japan. In fact, there are several things that need to be considered. Here’s a list of 5 challenging matters you need to prepare for in order to succeed in making business in Japan.
1.Starting your business
There are several procedures that need to be done when it comes to starting your business in Japan and it can be challenging such as several layers of bureaucracy to be navigated before a company landed on its feet in the country. A business entity needs to speak with the Legal Affairs Bureau of the Ministry of Justice, Ward Office, the local tax office, the Ward office, the Labor Of Standards Inspection Office, Employment Security Office and the Japan Pension Service before you can really start working in other areas needed for your business.
2.Getting electricity
Tokyo Electric Power Company or Tepco is Japan’s electric utility holding company in the surrounding areas and in the capital and you must consider that it takes at least 105 days to connect your company to the mains. To prepare, arrange a construction date to Tepco then send an application. Before having a meter installed, wait until the connection works.
3.Construction permits
For construction permits it takes at least 193 days for its arrangement according to the International Finance Corporation and World Bank. And another 15 procedures that need to be considered involving the local authorities and several government departments.
4.Registering your property
It takes a long time to register one’s property and the requirements are payment of stamp duty at a post office, application at the Legal Affairs Bureau, the seller’s seal impression and real property acquisitions tax payments.
5.Culture
When visiting Japan, it is apparent that politeness is ever essential when interacting with Japanese as it is a display of respect. It is also important to treat the elders with utmost respect because they are revered in Japan. When it comes to outfit, it may be a little laidback to most countries nowadays but in Japan, be more diplomatic and formal in a business setting. When handed with business cards, remember not to keep it right away but rather review it briefly and comment about it. You can also place it in front of the table while at a business meeting.
And finally, listen when someone is speaking and try to be more reserved for it is a sign of wisdom and understanding.
Conclusion
Are you planning a business venture in Japan? Which do you think in this list is the most challenging? Let us know in the comments what you think are the other challenging things when making business in Japan.
References:
https://mitranslations.com/doing-business-in-japan/
https://www.tmf-group.com/en/news-insights/business-culture/top-challenges-japan/
BY LA