Self-Employment Registration: How to Register as a "Kojin Jigyo" (Sole Proprietor) in Japan

So you've decided to take the leap into self-employment in Japan—congratulations! Whether you're a freelance designer, an English tutor, an IT consultant, or running an online shop, registering as a Kojin Jigyo (個人事業主) is one of the most important steps you'll take to legitimize your business and stay on the right side of Japanese law.

Tax office building in Japan A typical Japanese tax office where you'll submit your Kojin Jigyo registration

This comprehensive guide walks you through everything you need to know about registering as a sole proprietor in Japan as a foreigner.

What is a Kojin Jigyo?

Kojin Jigyo (個人事業主) literally translates to "individual business owner" and refers to a sole proprietorship in Japan. It is the simplest business structure available and is ideal for freelancers, independent contractors, and small business owners.

Key characteristics:

No separation between personal and business assets — you are personally liable for all business debts
Easy and inexpensive to set up — no capital requirements
All profits are taxed as personal income
Can be established by anyone with the right to work in Japan, including foreigners with appropriate visas

Do You Need to Register?

You are required to file a Kojin Jigyo Kaiyo Todoke (個人事業の開業届出書) — the Notification of Commencement of a Sole Proprietorship — if:

You are earning income from business activities (sales of goods, services, etc.)
Your business is ongoing and not just a one-time gig
You want to deduct legitimate business expenses from your taxable income

Even if your income is small...

There is no minimum income threshold for registration. In fact, registering early is beneficial because it allows you to:

Deduct business expenses (home office, transportation, equipment, etc.)
Join the national health insurance as a Category 1 insured person with potentially lower premiums based on reported income
Open a business bank account (some banks require it)
Build credibility with Japanese clients who may ask for your business registration

Prerequisites for Foreigners

Before you register, make sure you meet these requirements:

1. Appropriate Visa

You must hold a visa that allows you to work in Japan. Acceptable visa types include:

Engineer/Humanities/International Services (技術・人文知識・国際業務)
Business Manager (経営管理)
Spouse of a Japanese National (日本人の配偶者等)
Permanent Resident (永住者)
Long-Term Resident (定住者)

⚠️ Important: Some visas (like Student or Dependent visas) have restrictions on the type and hours of work permitted. Check your Certificate of Eligibility (COE) and visa conditions carefully. If you're on a work visa, your self-employment activities should generally align with your visa category.

2. MyNumber Card or MyNumber Notification Card

You'll need your MyNumber (マイナンバー) for tax-related paperwork.

3. A Residential Address

Your business will be registered to your home address or a rented office space.

When to Register

You must submit your registration within 2 months of starting your business activities. However, "starting" can be interpreted flexibly — it could mean:

The date you received your first payment
The date you launched your website or started marketing
The date you purchased business equipment

💡 Tip: Don't wait too long. Late registration is not heavily penalized, but you may lose out on deductible expenses for the period before registration.

Required Documents

Document 1: 個人事業の開業届出書

This is the main registration form, available at your local tax office or downloadable from the National Tax Agency website.

Information you'll need to fill in:

Your name (in kanji/katakana and romaji)
Your address
MyNumber
Business name (if any — you can operate under your personal name)
Business description
Date of business commencement
Estimated annual income
Whether you file blue form (青色申告) or white form (白色申告) tax returns

Document 2: 開業等届出書の添付書類

A copy of your MyNumber Card (both sides) or MyNumber Notification Card plus a photo ID.

Document 3 (Optional but Recommended): 青色申告承認申請書

Blue Form Tax Return Approval Application — This is CRITICAL for tax benefits. Submit this at the same time as your opening notification.

The Blue Form (Aoiro Shinkoku) system allows you to:

Deduct up to ¥650,000 from your taxable income as a special deduction
Carry forward losses for up to 3 years
Deduct family member salaries if they work for your business
Use more sophisticated accounting methods

⚠️ Note: The blue form application must be submitted by March 15 of the year you wish to apply it (or within 2 months of starting your business, whichever is later). If you miss this deadline, you'll default to white form status for that tax year.

Step-by-Step Registration Process

Step 1: Prepare Your Documents

Fill out the following forms:

Kojin Jigyo Kaiyo Todoke (開業届)
Aoiro Shinkoku Shonin Shinseisho (青色申告承認申請書) — if opting for blue form
Make copies of your MyNumber Card (both sides)
Prepare a copy of your residence card or passport

Forms can be downloaded from:

National Tax Agency (国税庁)
Or picked up at your local tax office

Step 2: Visit Your Local Tax Office

Bring all your documents to the Zeimusho (税務署) — the tax office that has jurisdiction over your registered address.

How to find your tax office:

Use the NTA Tax Office Locator
Ask at your local city hall
Search "[Your city/ward] 税務署"

Address example: If you live in Shibuya-ku, Tokyo, your tax office is the Shibuya Tax Office (渋谷税務署).

Step 3: Submit Your Documents

Go to the Shōzei-ka (徴税課) or Shinkoku Madoguchi (申告窓口) — the tax return counter
Hand in your documents to the staff
They may review them on the spot and ask questions
No fee is required — registration is free!

Step 4: Receive Confirmation

You won't receive a fancy certificate — the tax office simply stamps your form and returns a copy as proof
Keep this stamped copy in a safe place
Some tax offices may mail a confirmation notice to your address

💡 Tip: If you want an official "Certificate of Registration," you can request a Kaisha Toushou (登記簿謄本) equivalent, but this is more relevant for corporate structures. For sole proprietors, the stamped notification form serves as proof.

After Registration: Your Obligations

1. File Annual Tax Returns

As a Kojin Jigyo, you must file an income tax return (kakutei shinkoku) every year between February 16 and March 15.

White Form (Shiroiro Shinkoku): Simpler accounting, ¥480,000 special deduction (as of recent changes), no loss carry-forward
Blue Form (Aoiro Shinkoku): More complex bookkeeping required, up to ¥650,000 special deduction, loss carry-forward allowed

2. Pay Residence Tax

Residence tax (住民税) is calculated based on your previous year's income and billed by your local municipality starting in June. You can pay in:

4 installments (June, August, October, January)
Lump sum in June
Monthly installments via direct debit

3. Pay National Pension (Kokumin Nenkin)

All self-employed individuals aged 20-59 must enroll in the National Pension system:

Monthly premium: ¥16,520 (as of 2024)
Pay at convenience stores, by bank transfer, or via automatic debit

4. Pay National Health Insurance (Kokumin Kenko Hoken)

If you're not covered by employer health insurance, you must enroll in National Health Insurance through your local city hall:

Premiums are based on your previous year's income
First year premiums may be the minimum amount (around ¥2,000-4,000/month) if you had no Japan-sourced income the prior year

5. Keep Proper Books

Even white form filers must maintain basic accounting records:

White form: Simple income/expense ledger (日记式 is acceptable)
Blue form: Double-entry bookkeeping required for the ¥650,000 deduction (single-entry for ¥100,000 deduction)

Recommended accounting tools:

freee (Japanese, cloud-based)
Money Forward (Japanese, cloud-based)
Yayoi Accounting (弥生会計, Japanese, industry standard)
Wave Apps (English available, free)
Akaunting (English, open source)

Filing Your Taxes: Blue vs. White Form

Feature	White Form (白色申告)	Blue Form (青色申告)
Special Deduction	¥480,000	Up to ¥650,000
Bookkeeping	Simple ledger	Double-entry (for max deduction)
Loss Carry-Forward	No	Yes (3 years)
Family Salary Deduction	Limited	Full deduction possible
Application Required	No	Yes (Aoiro Shinkoku approval)
Difficulty Level	Beginner-friendly	More complex

💡 Recommendation: If your annual business income exceeds ¥1,000,000, the blue form is almost always worth the extra bookkeeping effort.

Common Challenges for Foreigners

Language Barrier

Most forms are in Japanese only. Consider:

Bringing a Japanese-speaking friend
Using the NTA's English consultation service: 03-3821-9070 (Tokyo)
Hiring a tax accountant (zeirishi — 税理士)

Understanding What's Deductible

Common deductible expenses include:

✅ Home office portion of rent and utilities
✅ Business transportation costs
✅ Computer and software purchases
✅ Business meals with clients (generally 50-100%)
✅ Professional fees (accountant, lawyer)
✅ Business insurance
✅ Advertising and marketing costs
✅ Phone and internet (business portion)
❌ Commuting to a regular employer (if you have a day job)
❌ Personal living expenses

Invoicing System (Invoice Seido)

As of October 2023, Japan implemented the Qualified Invoice System (適格請求書制度):

To issue compliant invoices, you must register as an Invoice Issuer (適格請求書発行事業者)
This is separate from Kojin Jigyo registration
B2B clients may require compliant invoices for tax deduction purposes
Register through the NTA website or via paper application

Checklist: What to Do After Registration

Open a business bank account (or at least a separate personal account for business use)
Get a personal seal (hanko) registered at your city hall — some banks require a registered seal (jitsuin)
Set up accounting software and start tracking income/expenses immediately
Apply for Invoice Issuer registration if you'll be doing B2B work
Notify your city hall about starting a business (some municipalities require this)
Enroll in National Pension if not already paying
Check your National Health Insurance status — your premiums may change
Set aside money for taxes — aim for 20-30% of net income
Consider hiring a tax accountant for your first year

Frequently Asked Questions

Can I register as a Kojin Jigyo on a work visa?

Yes, but your business activities should be related to your visa category. If your self-employment is in a completely different field, you may need to change your visa status. Consult immigration for guidance.

Do I need a physical office?

No. You can register your home address as your business address. Many sole proprietors work from home.

Can I register online?

As of 2025, the NTA is gradually expanding online services. You can submit some forms through e-Tax if you have a MyNumber card with digital certificates, but many people still find in-person submission simpler for first-time registration.

What if my business doesn't succeed?

You can file a Kojin Jigyo Hekiyo Todoke (廃業届) — Closure Notification — when you stop business activities. There's no penalty for closing.

How much does a tax accountant (zeirishi) cost?

Monthly retainer: ¥15,000-30,000/month for basic bookkeeping and tax filing
Year-end tax return only: ¥50,000-150,000 (depending on complexity)
Many offer free initial consultations

Useful Resources

Resource	URL	Language
National Tax Agency	nta.go.jp	Japanese/English
NTA Consultation	03-3821-9070	English
e-Tax Portal	e-tax.nta.go.jp	Japanese
Tokyo One-Stop Business Establishment Center	tokyo-startup.jp	Japanese/English
Japan External Trade Organization (JETRO)	jetro.go.jp	English

Final Thoughts

Registering as a Kojin Jigyo is a straightforward process that opens doors to legitimate self-employment in Japan. While the paperwork and Japanese language requirements can feel daunting, the benefits — tax deductions, professional credibility, and legal compliance — far outweigh the effort.

Key takeaways:

Register within 2 months of starting your business
Apply for blue form (Aoiro Shinkoku) status for maximum tax benefits
Keep good records from day one
Don't hesitate to seek professional help — a good tax accountant is worth the investment
Stay compliant with annual tax filings and social insurance payments

Good luck with your entrepreneurial journey in Japan!

Have questions about registering as a sole proprietor in Japan? Leave a comment below or contact us — we're here to help foreign residents navigate life and business in Japan.