Q17: When expanding business in Japan, which is more advantageous for obtaining various permits and licenses, a Japanese corporation or a Japanese branch?
ringo tax corporation
Japanese Certified Public Accountant ・Tax Accountant Hiroya Aihara
Ringo Tax Corporation
A: Generally, there are more cases where a Japanese corporation is considered advantageous.
Q: Why is a Japanese corporation more advantageous?
When considering the requirements for obtaining permits and licenses, there are several conditions where a Japanese corporation is more advantageous. Among these, the most significant factor relates to financial requirements.
Q: What are the financial requirements specifically?
The amount of capital is one example. For certain permits and licenses, a specific amount of capital is required. For instance, 5 million yen for general construction business, and 20 million yen for specific construction business. To meet such requirements, it is easier for a Japanese corporation.
Q: Are there any other differences between a Japanese corporation and a Japanese branch?
Regarding human and physical requirements, there isn't much difference between a Japanese corporation and a branch. However, permits and licenses applications may need to be made for each business or office location, and applications may be required regionally.
Q: Finally, are there any administrative aspects to consider?
When applying for permits and licenses, documents such as financial statements and related information are necessary. In the case of a Japanese branch, preparing and translating documents related to the foreign corporation can be time-consuming and costly. Therefore, a Japanese corporation has the advantage of simplifying procedures.
