The car rental sector in Japan continues to develop, since there are numerous young consumers who are shifting from owning cars to just using them. In this article, our company formation consultants in Japan explain different aspects related to opening a car rental company in this country.
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Steps to open a car rental business in Japan
To open a successful car rental company in Japan, our Japan companyformation agents recommend you to follow these steps:
• Choose a type of car rental business: you can choose from opening a business in the travel market or to become an event car rental company. Another option would be to set up an exotic car rental company in Japan, in which clients rent cars they would never be able to drive otherwise;
• Acquire a car fleet: the more cars you rent, the more profits you are likely to make. Obviously, the cars you acquire have to match with the type of car rental business you have decided to open;
• Buy insurance: discuss with your agent the details of the insurance policy;
• Other steps: we can provide further details on what these other steps in setting up a car rental business in Japan consist of.
Insurance for car rentals in Japan
The most significant car rental companies in Japan always include an automobile liability insurance and an automobile damage insurance in their basic contract charges.
In case of a car accident or a damage to another car or individuals in this country, the insurance companies have to acquit the compensation until a certain limit of liability.
Here are the most commonly used limits of liability:
• Bodily injury: unlimited per individual, including the car liability insurance;
• Property damage: unlimited per accident, after the initial excess fee of JPY 50,000 is acquitted;
• Car damage: up to the actual value per accident, after the initial excess fee of JPY 50,000 is acquitted;
• Personal injury: our company registration advisors in Japan can provide more details on this matter. We can also advise you in setting up a company in Japan.
If you need to know more about the car rental industry in Japan, or for assistance in setting up a company in Japan, please contact us.
Investors who wish to start a car rental business can also think about remaining in Japan for long-term purposes. In their case, temporary and then permanent Japan residency can be an option. Special requirements are in place in terms of the minimum period effectively spent in the country, as well as minimum income and other criteria. Our team can give you more details.