Lv.8 Mastering Procedures / Application Steps for Administrative Agencies [HR & Back Office] | Small Business Management

If you are starting a business, start here—a guide to mastering small business procedures

When you decide to "go for it" and start a small business, the first thing that confuses many people is the question of"What exactly do I need to do for the paperwork? Where should I even begin?"You have dreams and ideas. There are things you want to do. But when you try to take a concrete step forward,
the reality of "documents" and "applications" stands in your way—.It is not uncommon for people to give up because of this.

But please rest assured. Procedures are nothing to be afraid of. If you properly grasp the"flow and steps,"they will actually become your allies.
By clearly organizing the "basics of administrative procedures" necessary to run a small business, the key to mastering them will naturally come into view."Sole Proprietorship" vs. "Small Corporation"—no matter which one you choose to start with, everything you need is within the"correct procedure"—let's unravel it together.

Joining us on this journey as a new navigator is "Soumu," who is in charge of[HR & Back Office].

"Hey, Soumu. Is it bad to look into the procedures after I've already started the business?"

"It's not necessarily bad, but you should grasp the flow beforehand so you don't realize it too late."

Types of Procedures for Starting a Small Business

First, let's look at the most basic flow, assuming you are "opening as a sole proprietor" or "establishing a corporation," which are the starting points for small-scale management.

1. [Decide on the Form of Business]
✓ Whether to open as a sole proprietor or establish a corporation (such as a joint-stock company)
✓ This decision will significantly affect subsequent procedures, tax systems, and social insurance.

2. [Perform Various Notifications]
✓ For individuals, submit a "Notification of Opening (Notification of Opening/Closing of Sole Proprietorship)" to the competent tax office
✓ For corporations, follow steps such as "Articles of Incorporation preparation," "registration application," and "obtaining a corporate number"

3. [Tax-Related Procedures]
✓ Application for approval of blue return (sole proprietor)
✓ Notification of incorporation, application for special provisions for withholding income tax payment, etc. (corporation)
✓ Submit a notification of selection as a taxable business entity for consumption tax if necessary

4. [Social Insurance and Labor Insurance Procedures]
✓ If you plan to hire employees, submit a "Notification of Establishment of Labor Insurance Relationship" and "Notification of Establishment of Employment Insurance Applicable Office" to the Labor Standards Inspection Office or Hello Work
✓ Corporations and sole proprietorships with 5 or more regular employees must also submit a "Notification of New Application for Health Insurance and Employees' Pension Insurance" to the Pension Office

5. [Check with the Administration for Industries Requiring Permits and Licenses]
✓ There are many cases that require prior permission or registration, such as restaurants, beauty salons, nursing care businesses, and second-hand dealers
✓ Consult with the relevant administrative office or industry association in advance

6. [Catching information on subsidies, grants, and startup support]
✓ Finally, don't forget to utilize "support systems"
✓ Startup support menus and subsidies provided by the national government, local municipalities, and chambers of commerce can provide powerful support for your startup
✓ Depending on your plan, also consider utilizing startup loans (e.g., Japan Finance Corporation), which may allow for financing without collateral or guarantees

You don't have to try to do everything at once

If you have read this far, you should already know. If you approach procedures with perfectionism, you will collapse.
Rather, "handling necessary tasks at the necessary timing" is the royal road for small businesses. You don't need to do every notification or application "perfectly" from the start. As your business progresses, your staff increases, and your scale changes, the necessary procedures will also change. Small businesses can move forward much more easily by focusing on the "necessary move right now."
First, what you should do is turn your passion into the form of a business and earn revenue. It is very important to grasp this firmly and "master the procedures" so that they do not become a hindrance to running that business.

"This makes me feel relieved—I don't have to think that I have to do everything all at once, right?"

"That's right. It's important to clear them one by one in order."

Small business pre-departure check! Permits, tax applications, etc. [Checklist] 3 points

1) "Does your industry require a permit?" -- Only those who research it benefit from knowing about permits

When starting a small business, the first thing you must check is whether or not you need "permits and licenses." Surprisingly, in many industries, legal notifications or approvals are required, yet there are many cases where trouble arises because people "didn't know" or "realized it later."
✓ For example...

• Food and beverage industry -> Business permit from the public health center

• Beauty salons/Barbershops -> Notification based on the Beauty Act

• Nursing care/Welfare services -> Designation application and confirmation of operational standards

• Secondhand goods dealer -> Application to the police station is required

• Private lodging/Share house -> Relationship with special zone systems and the Hotel Business Act

As shown above, there are many industries that have "legally required conditions" as a prerequisite for operating a business.
That is why it is important to "properly research whether your industry requires a permit" from the very beginning. This is a field where "only those who research it benefit."

"Hey, Soumu! What exactly should I look up to find out if my industry requires a permit?"

"That's right. It's important to clear them one by one in order."

2) Grasp these two important procedures: "Tax and Labor" applications

Next, you must check the basic procedures for "Tax" and "Labor".
In small businesses, "backyard maintenance" tends to be delayed more than the sales activities themselves, and it is an area where people easily adopt an attitude of "dealing with it all later." However, these two points are the prime examples of "procedures that should not be put off." The following items are particularly important.

[Tax-related]

• Notification of opening a business (individual) / Notification of incorporation (corporation)

• Application for Approval of Blue Return

• Notification of Election for Consumption Tax (if necessary)

• Special Provision for Due Date of Withholding Income Tax (if paying salaries)

[Labor-related]

• Notification of Establishment of Employment Insurance Workplace (if planning to hire)

• Procedures for Establishing Workers' Compensation Insurance

• Notification of New Enrollment in Social Insurance (for corporations or sole proprietorships with 5 or more employees)

※The pros and cons of Blue Return vs. White Return will be explained in detail in ✓ [Lv.12 Knowing the Money You Pay to the State] for you.

"Tax Affairs" and "Labor Affairs"—these two are not only "confirmations of your qualifications to operate a business," but also the starting line for being a "trusted business operator." Because it is a small business, let's keep in mind to “handle at least the basic procedures with care.”

"Tax and labor affairs—those sound like such 'corporate' terms all of a sudden."

"Tax affairs are procedures for organizing the 'flow of money,' and labor affairs are for the 'flow of people.' Both are important for a company."

3) Preparation is everything for subsidies and startup support! The correct approach is to act with the "intention to receive" before you even start.

Some people exclude startup subsidies and support systems from the very beginning, saying, "I might get rejected..." However, that is a “wasteful decision.” Subsidies and startup support are
determined not by “whether you will be accepted,” but by “whether you prepare.” And by acting before you start, you will refine not only your "cash flow" but also the "accuracy of your business plan itself."
✓ For example...

• Small Business Sustainability Subsidy (Chambers of Commerce and Industry)

• Monodzukuri (Manufacturing) Subsidy (Small and Medium Enterprise Agency)

• Local Government Startup Support Systems

• Unsecured, Non-guaranteed Startup Loans (Japan Finance Corporation)

All of these rely on "preparation from before startup." Instead of thinking, "I'll think about applying once I open," ✓ “prepare from the beginning with the assumption of applying.” This stance becomes a realistic support strategy for a small business. If you prepare and find you don't need it, you don't have to apply. Even if it becomes unnecessary, this preparation will never be a waste.

What you should do before starting a small business is not to "perfectly complete all procedures," but to “grasp the points you must not overlook”—that is the correct mindset for starting out. And opportunity smiles only on those who have prepared.

Three steps

Now, let's go over the three steps to smoothly proceed with the necessary procedures before starting your small business. We will resolve your pre-opening anxieties one by one and prepare you to set off with confidence.

1. Confirm the 'Necessity' and 'Basis' for Licenses and Permits — The 'Correct Answer' is to Ask the Administration First

'I think it's probably unnecessary,' 'It looked fine when I checked online' — these 'vague judgments' are the cause of major trouble later on.
Regarding licenses and permits, you must possess the primary information that serves as the 'basis.' And the ironclad rule is to ask directly to the administration that holds that basis.
To do this, listing the licenses and permits that seem applicable to your business and confirming them directly with each responsible agency is effective. If you are unsure, you can also receive careful guidance at your nearest Chamber of Commerce or startup support center.
Rather than just looking things up, 'calling to confirm' or 'getting it clarified in writing' — this one step avoids business risks and enables a smooth start.
It is far more wasteful to 'regret not asking' than to feel 'embarrassed to ask.'

'So, asking directly really is the best way, isn't it?'

'That's right. By doing so, you can grasp reliable information and details.'

2. Tax and Labor Matters Should 'Move Simultaneously with Opening' — Make Your Initial Filings a 'Startup Ritual'

Filings with the competent tax office, pension office, and labor standards inspection office are not things to do 'when things settle down someday,' but rather things you should move on simultaneously with opening. And it is better to prepare before opening.
There are not many procedures to do at first. Rather, just knowing the checkpoints of 'if you do at least this, you'll be fine' will accelerate your start-up dash.
These 'opening notifications' and 'labor filings' are not just procedures, but also important actions to deliver your passion to the world as an 'official start'.
You don't need to have everything perfect. But decide, 'I will definitely do at least this by this time.' That focus will bring peace of mind and confidence to your business.

Also, as essential tools for the digital age, 'G-Biz ID,' which is indispensable for subsidy applications, and 'e-Gov,' which allows you to perform administrative procedures in one go — these two will be powerful allies for your small business in proceeding with procedures smoothly. Some of you may be hearing about them for the first time, so I have briefly summarized their features. Please take a look.

3. '90% is Decided by Whether You Know' — Incorporate the Collection of Support System Information into Your Daily Routine

Subsidies, grants, and startup support are not about 'luck' but 'information power'. To put it another way, those who 'know about support information' can receive it, while those who 'didn't know' are not even given the option from the start — this is the reality.
That is why you should treat support systems not as 'special information' but as 'daily information'.

✓ Startup support counters at Chambers of Commerce
✓ Startup support pages of local governments (city halls, prefectural offices, etc.)
✓ Official websites such as the Small and Medium Enterprise Agency and Mirasapo Plus

Just 'checking these information sources once a week' or 'registering for email newsletters' will have a major impact on the growth of your business.
Support only reaches those who 'prepare.' That is why first 'moving with the intention to receive' is the shortcut to success.

'Is it good to check not only various procedures but also support systems?'

'If the timing and opportunities align, you can apply for startup subsidies and the like, so it's definitely better to look into them.'

The goal of pre-departure checks is not to 'make everything perfect'

No matter how carefully you prepare, the start of a small business will always be accompanied by the 'unknown' and the 'unexpected.' Therefore, the purpose of pre-departure checks is not to make everything perfect.
What is important is to have a 'perspective to avoid overlooking things'. And to cultivate an attitude of 'not leaving things you don't understand alone.'
If there are omissions in licenses, permits, or procedures, you may face unexpected stops after opening. If you start without knowing about support systems, you might miss out on funds or support you could have received. However, these are all 'things that can be prevented if you can see them.'

'No one falls into a 'pitfall' whose location they already know.'
Rather than being conscious of making everything perfect, clear things one by one — that action is the essence of 'mastering procedures.'

✓ [Checklist] is a travel guide — rather than fulfilling everything perfectly, 'moving forward without stopping' is the wisdom of a small business.

"Smooth is best"

"Not stumbling" is the ultimate strategy

For small businesses, government procedures are often felt to be "things that get in the way of what I want to do." However, that is not the case; the appropriate way to think about them is as "the foundation for making what you want to do proceed more smoothly." It is true that paperwork and filing tasks may not be considered creative. But that is precisely why they are important.

"Finish what needs to be done first" so you can "fully focus on what you want to do"—that is the great driving force for a small business.

Being smooth does not mean being fast. Being smooth means "not stopping, and not stumbling while you walk."
For a small business, a single stop can be a fatal blow It is not rare for a business that has finally started moving to collapse for reasons as simple as "I didn't know," "I forgot," or "I thought I'd do it later."
"Accelerating your business" begins with "avoiding stumbles."

Those who grow smoothly do not underestimate "preparation."

Preparation is not just getting ready; in a sense, it is "passing the baton to growth and the future."

✓ If you act now, your next action will be smoother
✓ If you submit the notification today, you can apply for a subsidy in one month
✓ If you finish the social insurance procedures this week, you can focus on recruitment activities next month

Those who can design this "smooth chain" will grasp the rhythm of their business. And that rhythm is what illuminates the "path for even a small business to grow big."

To "organize while moving" rather than "organize before moving"

If you try to start only after perfecting your preparations, things may end up dragging on, becoming scary, and you may find yourself unable to proceed. However,
procedure mastery steps if you know the, "organize while moving" you can. This is a unique strength of small businesses.

✓ Move forward little by little, starting from where you can
✓ Ask those who know about things you don't understand
✓ Don't carry it all on your own; rely on local support organizations

The figure of moving forward without stopping, without getting lost, and without stumbling is the "orthodox method for small businesses." Smoothly forward. Give your business a rhythm that doesn't stop.—
"Smooth is best"

*The following is an [introductory video] for the program provided by Small Business University.

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