Basics of Entry into Japanese Market
Home > 3.Establishment of Corporation/Branch
When a foreign corporation sets up an office location in Japan, the form of the location normally falls under any of these three forms: (1) Liaison office, (2) Branch/sales office, and (3) Japanese corporation.
| 1.Liaison office | 2.Branch/sales office | 3.Japanese corporation | |
|---|---|---|---|
| Registration | Not required | Required | ①Joint-stock company ②LLC The advantages and disadvantages vary depending on which of the above you choose *See below |
| Activities in Japan | Liaison only | Full-scale business | |
| Corporation tax imposed | n/a | Corporation tax imposed | |
| Bank account | Cannot be opened in principle | Can be opened | |
| Advantages |
・No registration required ・Can book sales ・Easy establishment |
・Quick establishment ・Normal sales activities allowed ・Easy acquisition of work visa ・High social credibility |
|
| Disadvantages |
・Cannot book sales ・Limited work visa ・Low social credibility |
・Registration required ・Time-consuming establishment ・Complex establishment procedures |
When a foreign corporation sets up an office location in Japan, the form of the location normally falls under any of these three forms: (1) Liaison office, (2) Branch/sales office, and (3) Japanese corporation.
| 1.Joint-stock company | 2.LLC | |
|---|---|---|
| Registration | Required | Required |
| Judicial personality | Granted | Granted |
| Stakeholder | Shareholder | Limited partner |
| Bank account | Can be opened | Can be opened |
| Advantages |
・Can book sales ・Normal sales activities allowed ・Easy acquisition of work visa ・High social credibility |
・Relatively easy establishment ・Low establishment cost |
| Disadvantages |
・Registration required ・Time-consuming establishment ・Complex establishment procedures |
・Limited work visa ・Low social credibility ・Pass-through taxation does not apply |
・The type and number of work visas that you can acquire after establishment may be restricted depending on the office location type.
・Any office location type comes with both advantages and disadvantages.
Before choosing your office location type, it is advised to fully clarify activities that you would like to conduct in Japan. In this regard, feel free to contact us for our free consultation where we propose the most appropriate corporate form for your business plan.
Since our foundation in 1986, we have been boasting over 30 years of experience and achievements in services such as incorporation, visa application for foreign nationals, and acquisition of permits and licenses.
You can consult us by phone, email, online, or in person. Also, you can speak to us in English.