Supports for Foreign Companies
Points to note for filling out the Plan for Business Startup Activities Form.
|1||Overall||The submitted Plan for Business Startup Activities and other documents are assessed from the perspective of whether you have a high likelihood of fulfilling the conditions for the “Business Manager” status of residence after the six-month preparation period (startup activity period), in which case, “Confirmation of Business Startup Activities” will be granted. For this reason, it is important that the submitted Plan for Business Startup Activities and other documents include the following information, explained in an easy-to-understand manner.
|2||1.Outline of the applicant||(2) The applicant’s position and role in the business.||● In the case of a company founded by a single person (e.g., when 100% of the capital is invested)
The description may include "representative director," "general management," or "overseeing the entire business as representative."
● If you are cofounding (or applying for) a business with another foreigner, or if there is another business owner who is Japanese.
Please explain your specific role in the business, such as "Vice President of Sales, responsible for sales in XX region," "Director, responsible for planning, development, and production of YY project," or "CFO, responsible for fundraising, financial management, and corporate planning."
|3||(3) Qualifications, work experience, special skills, patents owned, etc., that serve as background to your founding of the business.||In the confirmation of the Plan for Business Startup Activities, the evaluation will focus on how possible it will be for the applicant to launch a business of a scale that meets the requirements through their startup activities. We think that this probability is higher when the person has the abilities, qualifications, experience and so on that will work to the advantage of the proposed business. In addition to nationally-recognized qualifications, it may be helpful if you include information such as “majored in XX and especially researched YY at university,” and “experience in developing sales channels for product ZZ to leading company AA , company BB, and others in the CC industry.” Another important element is, as also outlined in the policy for the Tokyo Area National Strategic Special Zone, "to create a new, internationally competitive business."|
|4||(5) Scheduled Opening of Business, a. Date of opening of a business.||Generally, the date of opening of a business conducted as a corporation is the date of its registration as a corporate entity, and for a sole proprietorship in which a corporation is not established, this is the date that the Notification of Opening of Business was submitted (to the tax office). The opening of business could also be interpreted as the first day of sales.
For a sole proprietorship, in the Capital Stock (or Personal Funds) line, indicate the amount of working funds especially prepared to launch the business.
|5||(5) Scheduled Opening of Business, e. Capital Stock (or Personal Funds).||For a sole proprietorship, in the Capital Stock (or Personal Funds) line, indicate the amount of working funds especially prepared to launch the business.|
|6||(5) Scheduled Opening of Business, h. Number of employees.||The number of employees should not include the management team.|
|7||3.Schedule for Startup Activities.||Please arrange stage by stage what you must do to establish your business, such as the administrative procedures for establishing a corporate entity (preparing articles of incorporation, paid-in capital, registration of incorporation, acquisition of permits and licenses, etc.), plans for hiring management and staff, preparation of goods and services, creation of relationships with customers and suppliers, financing, and so on. Take care to do so in a manner that makes the points for the “Confirmation of Business Startup Activities” easy to understand as mentioned in the answer to Question. In particular, you must realistically note how much money will be needed at each stage and how this will be provided for.
Please also indicate when you plan to obtain permits and licenses (example: antique dealer permit).
|8||4.Income plan.||The income plan shows how much profit (or loss) is produced after expenses are deducted from sales.These are essential to evaluate business sustainability and to check the items necessary for “Confirmation of Business Startup Activities". For this reason, based on reasonable grounds, provide figures that are in line with the expected nature of your business and customers (e.g., average unit price, number of customers).
For breakdown of sales and expenses, indicate the leading items (items of high value, items characteristic of the business, etc.), and combine the other items under "Other.” Generally speaking, in many cases, the breakdown of sales is done by type of product/service, or by customer; the cost of sales includes cost of materials, outsourcing, labor (personnel costs of people manufacturing the goods); and selling and administration costs including HR expenses (personnel costs of the indirect departments), rent, lease, and marketing costs (advertising, communications, travel, shipping, etc.). Income after income tax is calculated by deducting interest payments, extraordinary loss, corporate income tax, etc., from operating income. Income after income tax corresponds to "This period’s income” in “5. Financial Plan.”
Please make sure that the selling and administrative costs for HR expenses and personnel costs are consistent with the breakdown of HR expenses and personnel costs.
If income before income tax is negative, please indicate the income after income tax as it is.
|9||5.Financial plan.||The financial plan shows how much money is left in the company’s “wallet” (cash). As can be understood from the term “black-ink bankruptcy,” even though a company is generating profit, it may lack sufficient cash. In order to grant “Confirmation of Business Startup Activities,” it would be necessary for you to show that the business will be able to secure sustainable levels of profit and funding.
In general, cash flows are calculated by deducting cash outlays that are not included as expenses (use of funds), such as real estate purchases, capital investment, and repayment of debt from (post-tax) profit, and adding new funds procured and expenses with no cash outlays (capital procurement) such as depreciation costs, debts, and capital increase.
Please indicate expenditures for capital investment (equipment, fixtures, etc.) that will not be included as expenses in the current period (do not include consumable goods).
Include directors' remuneration in personnel costs
|10||6.Cash Flow Table||Indicate the cash flow for the period after opening your business.
*The first entry date should match the month of the "planned date of incorporation (start of business)" in the financial plan.