Q6: What are the advantages and disadvantages of establishing a representative office in Japan for market research by a foreign company?

Japanese Certified Public Accountant ・Tax Accountant Hiroya Aihara
Ringo Tax Corporation

A: The advantages and disadvantages are as follows.

Advantages

Establishing a representative office is aimed at gathering information and conducting market research. A significant advantage of this method is that it does not require registration procedures and incurs no establishment costs.

---

Disadvantages

However, major disadvantages include the inability to conduct sales activities, the potential for decreased credibility due to the lack of legal registration in Japan, the likelihood of being unsuitable for employing staff, and the potential inability to open a corporate bank account. Considering these points, companies need to choose the most suitable entry method according to their strategy and goals.

---

---