Large Stable Economy
With a GDP of around $5 trillion and one of the world’s highest per capita incomes, the Japanese economy is robust. This strong economy, coupled with a low fluctuating currency, provides foreign businesses with stability and peace of mind.
Attracting Foreign Businesses & Foreign Direct Investment (FDI)
Japan has begun to make changes to make the business environment more attractive to foreign companies.
Some of these include:
The removal of language barriers at retailers and restaurants
Installation of free Wi-Fi around in public spaces
Simplifying regulations for foreign companies
Setting Up to Launch
Launching your brand in Japan can be a bit of a tricky process, but don’t worry, we’ve got you covered. First things first, as a non-resident importer, you’ll need to get yourself a JCT (Japanese Consumption Tax) Registration Number. This will be your ticket to doing business in Japan and will also be used for filing your taxes. Speaking of taxes, you’ll need to keep up with the filing schedule assigned by the local tax office, which is typically done on an annual basis.
But wait, there’s more! Japan is known for its strict regulations when it comes to product compliance. This means that you’ll need to have authorized representation or responsible persons for food and contact materials, electronics, and toys. Don’t worry, it’s all worth it in the end.
Launching Your Brand in Japan
Now, even with all the necessary paperwork and compliance measures in place, you’ll still need an Importer of Record to act on your behalf when sending your goods into Japan. And let’s not forget about the JCT of 10% that will be payable on the import value. But don’t worry, this can be reclaimed.
One last thing to keep in mind is the classification of your goods. This is crucial as duties will depend on it and are non-refundable. But don’t stress, with the right classification, you’ll be able to ship your goods directly to Japan or other countries in the world.