Q3:I don't understand the difference between a Japanese corporation, a Japanese branch, and a Japanese representative office. Could you explain it to me?


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

A: Let's take a look at the differences and characteristics of a Japanese corporation, a Japanese branch, and a Japanese representative office below.

1:Establishing a Japanese Corporation

・It is an independent company created under Japanese law, separate from the parent company.
・Decisions are made by the board of directors in Japan, allowing for local business operations.
・Being legally registered, it can open bank accounts and hire staff.


2: Setting Up a Japanese Branch

・It is positioned as a part of a foreign corporation, following the head office's decisions.
・As it involves cross-border transactions, contract preparation can be time-consuming.
・Legally registered in Japan, it can open bank accounts and hire staff.


3:Establishing a Representative Office in Japan

・It is a part of a foreign corporation for research or investigation purposes and is not legally registered.
・Opening accounts and hiring staff in Japan involves complex procedures.


These methods should be chosen according to the company's strategy and objectives, and understanding each's characteristics is important.