Starting as a freelancer in Japan is an excellent idea, especially if you want to test the waters before committing to establishing a company. Japan has a growing market for freelance software consultants, particularly in IT, software development, and related fields. Here's a guide to help you decide and get started:
Why Freelancing is a Good Start
- Lower Initial Investment:
Freelancing doesn’t require registering a company or significant capital. You can start with minimal resources.
- Flexibility:
Freelancing allows you to explore different industries, projects, and clients before deciding on a niche.
- Building a Portfolio:
You can establish a track record of successful projects, which will make it easier to attract clients if you later incorporate a business.
- Tax Benefits:
Freelancers in Japan can operate as sole proprietors (個人事業主, kojinjigyo-nushi), which has simpler tax filing processes than companies.
- Easy Transition:
Once you have a steady client base, you can smoothly transition to setting up a company.
Steps to Start Freelancing in Japan
- Check Your Visa Status:
Engineering Visa: Your current visa may allow freelancing if it aligns with your existing job description (e.g., IT/software development).
If freelancing isn't explicitly permitted, you may need to apply for a Permission to Engage in Other Activities from the Immigration Bureau.
- Register as a Sole Proprietor:
Visit your local tax office to register as a kojinjigyo-nushi.
Complete a "Notification of Commencement of Business" form (開業届, Kaigyō Todoke).
This registration allows you to legally invoice clients and deduct business expenses.
- Build Your Online Presence:
Create a professional portfolio website or LinkedIn profile showcasing your skills and past projects.
Join freelance platforms like:
Lancers.jp (Japan-specific)
CrowdWorks.jp (Japan-specific)
Upwork or Toptal (global platforms).
- Networking:
Attend local tech meetups, seminars, and events.
Join Japanese and international communities like Tokyo Freelance or LinkedIn groups.
Use platforms like Wantedly or Justa to find freelance gigs.
- Understand Japanese Clients’ Expectations:
Emphasize professionalism, timely communication, and high-quality work.
Many Japanese clients expect detailed proposals and clear timelines.
- Invoice and Payment:
Use invoicing software (or a template) to create clear, professional invoices.
Be aware of tax implications and retain a portion of your income for tax payments.
- Language Skills:
Basic Japanese proficiency will be a significant advantage in expanding your client base, although many international companies in Japan use English.
- Taxes:
File an annual tax return (kakutei shinkoku).
As a sole proprietor, you can claim deductions for business-related expenses such as equipment, software, and transportation.
Challenges to Consider
- Visa Limitations:
Ensure your current visa permits freelancing. If not, you may need to switch to a Business Manager Visa or obtain permission for additional activities.
- Client Acquisition:
Building a client base takes time, especially in Japan, where relationships and trust are key.
- Language Barrier:
While many IT-related jobs are in English, Japanese fluency can help you secure more local clients.
- Lack of Job Security:
Freelancing comes with income fluctuations, so having financial savings or a part-time job as backup is advisable.
Verdict
Starting as a freelancer is a low-risk, high-reward strategy, especially for exploring the market and building a network in Japan. It offers flexibility, lower costs, and the opportunity to refine your skills and niche before transitioning to a full-fledged business. Ensure you comply with legal and visa requirements and focus on networking to secure consistent work.