Japanese Business Glossary

個人事業主 (kojin jigyo-nushi) refers to a sole proprietor or self-employed individual in Japan. This type of business structure is where an individual owns and operates their own business without forming a separate legal entity, like a corporation. As a sole proprietor, the individual has complete control over their business decisions and is personally responsible for all liabilities and debts incurred by the business. This also means that the income generated from the business is considered personal income and is subject to personal income tax. Many freelancers, small business owners, and independent contractors in Japan operate as kojin jigyo nushi. This structure is relatively simple to set up and manage, making it a popular choice for those starting small-scale businesses. However, it also means that the owner is directly exposed to financial risks, as there is no distinction between personal and business assets.

役務 (ekimu) refers to services or labor provided in exchange for compensation in Japan. Unlike tangible goods, ekimu encompasses various forms of intangible work or assistance offered by individuals or businesses. This can include professional services such as consulting, legal advice, maintenance work, and other forms of labor or expertise. The concept of ekimu is essential in the Japanese business landscape as it covers a broad spectrum of activities that support the functioning and growth of companies. In legal and commercial contexts, accurately defining and valuing ekimu is important for contracts, pricing, and taxation purposes. Understanding ekimu helps businesses and service providers establish clear agreements and ensure fair compensation for the services rendered.

寄託 (kitaku) refers to the act of entrusting or depositing something with another party for safekeeping in Japan. This term is commonly used in legal and financial contexts to describe situations where an individual or entity temporarily transfers the custody of property, assets, or documents to another party, typically for protection or management.

In a business context, kitaku can involve depositing important documents, securities, or funds with a financial institution or a trusted third party. The party receiving the deposited items is responsible for their safekeeping and may also have certain duties related to managing or preserving the items as agreed upon in the contract.

The concept of kitaku ensures that the deposited items are securely handled and returned in good condition when needed by the owner. This practice provides a legal framework for the safekeeping of valuable items and helps prevent disputes by clearly defining the responsibilities and obligations of both parties involved in the arrangement.

酒 (sake) refers to alcoholic beverages in Japan. While the term can generically mean alcohol, it is most commonly associated with a specific traditional Japanese rice wine made through a brewing process similar to that of beer. Sake is made by fermenting polished rice, water, yeast, and a mold called koji. It comes in various types and flavors, ranging from sweet to dry, and can be enjoyed warm or cold, depending on the type and personal preference. Sake holds cultural significance in Japan, often being used in ceremonies, celebrations, and as an offering in religious rituals. It is also a popular drink served at social gatherings and meals.

前払費用 (maebarai hiyou) refers to prepaid expenses in Japan. These are payments made in advance for goods or services that will be received or used in the future. Common examples of prepaid expenses include rent, insurance premiums, and subscription fees. In accounting, these payments are initially recorded as assets on the balance sheet because they represent future economic benefits. As the goods or services are consumed or the time period covered by the payment elapses, the prepaid expenses are gradually expensed on the income statement. This accounting treatment ensures that expenses are recognized in the period to which they relate, providing a more accurate reflection of a company's financial performance and position.

通勤手当 (tsuukin teate) refers to commuting allowance in Japan. This is a benefit provided by employers to their employees to cover the costs of traveling between home and work. The commuting allowance can include expenses for public transportation such as trains and buses, or even fuel costs if the employee drives a personal vehicle to work. The provision of a commuting allowance is a common practice in Japanese companies and is often included as part of the employee's compensation package. This allowance helps alleviate the financial burden of commuting and supports employees in maintaining a consistent and punctual attendance at work.