Hi JP Finance,
I posted in smallbusiness, I wasn’t sure whether to post this in a Japan subreddit, but I’m a long-term resident of JP and looking to start an import/export business.
I have a contact in Korea, the country is pretty close obviously and we were discussing a simple import/export model as relations are decent between the countries now (not that it matters for the business) but there are currently many products sold in either country that residents may not want to travel just to buy.
**When considering a business like this, I’d like to understand:**
* What are considerations when running an import/export business?
* How do taxes work since import taxes are a thing when purchasing on Amazon etc? Is there a different system for the business? (e.g. customer pays all etc. or biz must pay some?)
* What are some of the struggles specific to this business type? (I have ideas but want to flesh out all)
* Will I need a huge Warehouse or is there some other way I can manage the goods?
* I assume it will be better initially to buy retail until I establish product market fit and demand. At what point is it beneficial to reach to manufacturer for wholesale?
* How profitable are these ventures usually?
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Lastly, since this is the JP Finance Subreddit, generally, is there a way to start this sort of business fairly cheaply? (Maybe with 1-2 million JPY?) I have more, but I want to mitigate risk.
How would my VISA situation work with this? I currently work and have the catch all humanities visa. This year will be my last renewal and I have until 2026 when I will immediately apply for PR at 10 years. Should I wait and spent 2 years planning the business/saving more?
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If there are any other considerations etc. Would love to understand them. I had a sole proprietorship before (something I’d never do back home due to liability but in JP I heard its fairly safe from sue-happy folks) and it was OK. One major benefit was tax breaks – I’m getting killed by taxes.
Starting in JP/KR is mainly due to long-term Asia residency, language ability, and proximity.
I frequent KR and many contacts there make doing market research etc. easier. I plan to do the same in JP.
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Thanks!
by kangaete