Q5: What are the benefits and drawbacks of setting up a Japanese branch for a foreign company looking to enter the Japanese market?

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

A: The advantages and disadvantages are as follows.

Advantages

The main benefits of setting up a Japanese branch include the possibility of opening a corporate bank account and relatively low registration costs. This allows the parent company to establish a foundation for directly conducting business in Japan at a relatively low cost.

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Disadvantages

However, drawbacks include the need for a resident representative in Japan, and if there are changes in the parent company's headquarters or directors, it necessitates changes in registration for the Japanese branch, complicating the process. Additionally, the branch is susceptible to the parent company's influence, which can lead to increased taxation in Japan and potentially complicate accounting processes.

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