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Visa and tax issues when starting new company 2022/1/18 13:50

My girlfriend and I currently work for a English school company. From April we will be working alone in our own company that we set up. As she is Japanese, the company is set up in her name ( kojin jigyo type). I am on a specialist in humanities/intl services visa with 2 more years left.

We have a few contracts already with a few kindergartens to teach in their school and also use the rooms afterwards for after school lessons.

Will I have a to get a new visa in April? I'm not really sure how it works as I have been employed by the same company for 8 years. Will I be self employed or technically employed by her?

Another question I have is about taxes. The kindergartens and parents of students will be paying money into our company account. Do we just pay taxes on what goes in there or do we have to pay extra ones if we take the money out and divide it between us?

Sorry if that question doesn't make sense, please ask me if you need any more information.

Thank you!

by Shosha88  

Re: Visa and tax issues when starting new company 2022/1/18 23:30
If she's Kojin jigyo-nushi, it's not a "company" that you are trying to set up. There is no such a thing as "Kojin jigyo type company." Kojin jigyo-nushi means "freelancer." It's one's way of working, not a type of organization.

After quitting your current company, your status will be simply "unemployed." Your girlfriend can't be your sponsor, which your current company is right now.

I recommend you to consult with a professional if you can still live in Japan after losing your current status.
by Tai (guest) rate this post as useful

Re: Visa and tax issues when starting new company 2022/1/18 23:56
Thanks for the reply. Sorry, I don't think I explained myself properly originally but basically my girlfriend and I currently work for the same eikaiwa company. It's not a very good one so all the schools that we teach at have asked us to teach there directly from April, cutting out my previous company. She filled out the forms and became kojin jigyo nushi. We read online that she can hire a foreign person, do you know if this is true? We have contracts in place with the schools for our services from April. I guess I should contact an immigration lawyer or something.

Thanks again for your reply, I appreciate it.
by Shosha88 rate this post as useful

Re: Visa and tax issues when starting new company 2022/1/19 07:52
Sole proprietor style of company might work for you GF and yourself, but you would probably be better to set up a proper company (GK would work). That would also make it easier/better for the schools you are providing services to. As an example to get you started, check the following link:
Also, sounds like you don't know much about how companies work, so I recommend you get some proper advice (immigration lawyer and accountant) to cover your status of residence and tax issues.
by JapanCustomTours rate this post as useful

Re: Visa and tax issues when starting new company 2022/1/19 09:26
She can make any contract with you for sure, anyone can.
But it doesn't mean she can sponsor you for working permission as an employer because it's just a contract between two individuals and a residence permit is not issued for a contract between individuals.
by Tai (guest) rate this post as useful

Re: Visa and tax issues when starting new company 2022/1/20 15:25
If your wifefs "company" is eligible and really ghiresh you, and you will be doing the same work as before as categorized by the immigration authorities, youfd be able to stay on the same resident status.

(With the current resident status, I donft think you can be an gindependent business ownerh – if you get married and you get a Spouse of Japanese National, then youfd have no restrictions on what kind of work you do, with or without an employer.
Apart from your girlfriend setting up a proper gcorporate entityh and hiring you as a employee, another possible way might be Investor/Business Manager, but this one is difficult to obtain, I hear. There were some other threads where having your own English language school was discussed – Ifm not familiar with this, so please search this forum.)

Once you do set up a company, probably youfd need to hire a tax accountant – the money goes into the company account, so her company will file the companyfs taxes, listing its revenues, minus expenses, minus salaries (yours and hers), minus depreciation, etc., etc., and the two of you individually will be the companyfs gsalaried workersh (or her drawing a representativefs compensation and you drawing a salary), and the company will be doing the tax withholding from the salaries, and doing year-end adjustments for you too (this will be the basis for your resident taxes).

(Please make sure you remain consistent between your resident status and taxes – if you say to immigration you are an employee, you need to be receiving salaries/remuneration as an employee and tax matters taken care of accordingly.)
by AK rate this post as useful

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