Solid Japan News

Building the Foundations of Your Business in Japan…

Volume 1, Issue 4
Introduction
Solid Japan Inc. is a complete business support solutions provider for foreign companies in Japan. We offer one-stop convenience and exceptional customer service. Solid Japan Inc. has assembled a powerful team of top-notch business service providers to help you build and expand your business in Japan. Whether you are setting up a new company, need help locating an office or apartment, filing a Japanese tax return, or recruiting capable staff Solid Japan can help. We do it all. We do it well, and we do it at competitive rates. To find out more about our full range of services, please visit our website at: www.solidjapan.com

April Rate Changes
April is the season of cherry blossoms and change in Japan and the start of the fiscal year for most corporations and government offices. As a result there are several new changes to government tax and social benefit programs beginning from this month that will have an impact on businesses and employees. Below is a brief summary of some key changes for this year.

Unemployment Insurance Rates Going Down
Despite the increasing number of people applying for unemployment insurance benefits, the government has decided to lower the contribution rates for unemployment insurance premiums. This is said to be aimed at giving companies a break and making it more affordable to keep their staff on the payroll. The unemployment insurance rates will drop from 1.5% to 1.1% (employee portion: 0.4%, employer portion 0.7%) of salary effective from April 1st. This is a temporary measure that will last for a period of one year. At the same time, the Accident Insurance (Worker’s Compensation) rate will drop from 0.45% to 0.3% of salary. Only employers pay into this program

Nursing Care Rate Increase
The Nursing Care Insurance rate for employees over 40 years of age has changed from March 1st 2009, and for most companies the deductions will begin from April’s payroll. The new rate has changed from 1.13% to 1.19%.

Corporate Tax Rate on the Way Down
The corporate income tax rate for small and medium size business will drop from 22% to 18% on the first 8 million yen of income. This new rate is applicable for companies whose fiscal year ends after April 1st, 2009.

National Pension Premiums Increasing
Premiums that individuals pay at their ward or city office for the National Pension (Kokumin Nenkin) Program will be increasing by 250 yen per month from April, and the new premium rate will be 14,660 yen. This change is only for National Pension and does not impact those enrolled through their company in the National Workers Pension Program.

Labour Insurance Deadline Moved Back
The window for calculating and submitting the annual Labour Insurance (unemployment insurance and worker’s compensation insurance) adjustment and prepayment (1st payment) report has been pushed back this year. In previous years employers were expected to make these calculations during the April- May period and the submission deadline was May 20th. This year, the Labour Insurance Office will be sending the calculation/report forms out by the end of May, and the report/payment will be due by July 10th. The labour insurance rates have also changed from April (see above).

Subsidies Available for New Business Owners
Did you know that if you are a new business owner, you may be eligible to receive cash subsidies to help get your business off the ground? A program administered by the Health, Labour and Welfare Ministry provides subsidies to help cover a portion of company set-up costs. The program is available to individuals who are qualified to receive unemployment insurance benefits and who have started their own business. The program covers up to one-third of start-up costs incurred in the first 3 months up to a maximum of 2 million yen, - or one-half of start-up costs up to 3 million yen in rural areas. The company must stay in business for more than 3 months and must enroll in the Unemployment insurance program within a year from the company set up date. Also, the owner must be the Representative of the new company and must have been enrolled in the unemplyment insurance program for more than 5 years. Certain other conditions may apply. For more information, contact Solid Japan today.
info@solidjapan.com

Business Start-Up Information Package - Only JPY25,000!
Thinking of starting a new business in Japan? Our special business start-up information package is the perfect place to begin. This is a one-hour consulting and information package that will answer all those nagging questions you have about starting your own business in Japan. Our business establishment expert will sit down with you and go through all the basics; from which structure to choose, initial setup procedures, tax and visa considerations, staff and payroll planning, IT/office setup, and expected start-up costs and timeline. We’ll also give you an information packet to take home. At only JPY25,000 you can’t afford not to take advantage of this valuable time-saving resource.
info@solidjapan.com

Solid Japan featured in Tokyo Weekender Magazine
Solid Japan Inc. and founder Robert Crane are featured in the latest issue of the Tokyo Weekender magazine. To view the article, click on the following link: http://www.weekenderjapan.com/#issue:7/page:26
One-Stop Centers for Foreigners on the Way

According to a recent report in the Mainichi Shimbun, the Ministry of Justice is establishing special “One-Stop Centers” to help foreign residents better integrate into Japanese society. The 3 centers, which will be set up in Tokyo, Saitama, and Hamamatsu - areas chosen for their relatively large foreign populations - will be staffed with cross-sectional teams and will be available to assist and advise foreign residents with all matters such as employment issues, visa and immigration problems, residency procedures and how to settle into their local communities. These issues are currently handled separately by local governments and regional immigration bureaus. The first center, in Hamamatsu will open this month.
Outsourcing Your IT or Keeping it In-House?
With the current downturn in the economy, many businesses are turning to contract or project-based IT solutions over maintaining their own in-house IT staff. Because IT is such an essential part of business these days, it is important that any outsourcing is done properly, with a full view of the costs and benefits. Companies often get burned trying to outsource their IT work to offshore countries in an attempt to keep costs low. They quickly discover that issues such as lack of local market expertise, communication difficulties, and problems trying to administer and develop IT systems from a distance can cause more headaches than it is worth.
On the other hand, local Project and Contract- based IT solutions can make a lot of sense and is fairly easy to administer. The benefits are that you can pay as you go and you get the experience and expertise of a full team, all without having to pay for training time, employee benefits, and being locked into employment contracts that are hard to get out of. The trick is choosing a skilled IT partner you can trust, and who has experience in a wide variety of IT applications. There are providers of differing levels out there, so it is important to look for client testimonials and a solid track record. Solid Japan’s IT Support Team is available to help clients on a contract, retainer or project basis. For more information, contact us today at: info@solidjapan.com