Helping Foreign Companies Start a Business in Japan- How We Can Help You Set Up a Company or Branch Office in Japan.

1.Setting Up a Base for Your Business in Japan

1.Types of Business Operations for Foreign Companies Setting Up a Base in Japan

　When foreign companies are setting up a business base in Japan, one of the following types of business operations is generally recommended: 1) liaison office; (2) branch office; or (3) Japanese company.

	(1)Liaison Office	(2)Branch Office	(3)Japanese Company
- Registration as a business entity	Not required.	Required.	(i) Kabushiki Kaisha (KK), a stock company. (ii) Godo Gaisha (LLC), a limited liability company. Choosing which form of company depends on how the defining characteristics (merits and demerits) meet the needs of the business to be set up in Japan. See the table below for details.
- Business activities in Japan	Not allowed. (To be used for correspondence and coordination purposes only.)	Considered as a standard business entity.
- Taxation of corporate tax	Exempt from taxation	Subject to taxation.
- Opening of a business bank account	Not possible (in principle).	Possible.
- Merits	- Registration is not required. - Can be set up with fewer procedures. - Speedy set-up of a business base in Japan.	- Revenues can be generated as an independent business. - Allows business operations as a standard business in Japan. -Serves as a plus in application for work visas. - Helps to gain a higher level of societal trust.
- Demerits	- Not allowed to generate revenues. - Used only for correspondence and coordination activities. - Faces certain restrictions in obtaining work visas. - Leads to a low level of societal trust.	- Needs a commercial registration. - Takes longer to set up. - Requires cumbersome procedures to set up.

2.Two Most Commonly Used Forms of Company in Japan

　Two Most Commonly Used Forms of Company in Japan

	(i) KK	(ii) LLC
- Registration as a business entity	Required.	Required.
- Business entity with legal personality	Yes.	Yes.
- Capital investor	Stockholder.	Limited liability partner.
- Opening of a business bank account	Possible.	Possible.
- Merits	- Revenues can be generated and reported as an independent business entity. - Allows business operations as a standard business in Japan. -Serves as a plus in application for work visas. - Contributes to gaining a higher level of societal trust and confidence.	- Easier to set up because of fewer procedures compared with KK. - Can be set up at low cost.
- Demerits	- Requires commercial registration. - Takes longer to set up. - Requires cumbersome procedures to set up.	- Faces certain restrictions in obtaining work visas. - Leads to a lower level of societal trust and confidence compared with KK. - No pass-through characteristics in taxation.

3.Note

・Depending on the type of business operation, there may be some restrictions in obtaining work visas in terms of the category of visa and also the number of staff who can obtain work visas.

・Each type of business operation above has merits and demerits. Be sure to carefully consider the business activities that you plan to engage in while in Japan, and decide on the type that best matches your needs.

2.Services

1.Summary of Services

　Depending on your business needs, we help you set up a branch office, subsidiary company, or liaison office.

　We provide services for the required work involved in setting up a business in Japan. We consult with you and act on your behalf in matters such as drafting of articles of incorporation, preparation of board meeting minutes, notarization, and registration of a business entity. Reporting to your overseas head office (in a foreign language) is available upon request.

2.Fees

Please feel free to contact us for details. We submit quotes after confirming the details of your plans and needs with you.

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