Q7: Can you explain the differences in legal rights when operating as a Japanese corporation, a Japanese branch, or a representative office in Japan?

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

A: The differences between them are as follows.

For a Japanese Corporation

・It is separate from the foreign parent company, and rights and obligations are attributed to the Japanese corporation.
・Transactions with Japanese clients are treated as transactions between Japanese corporations.

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For a Japanese Branch

・As a part of the foreign corporation, rights and obligations are attributed to the foreign corporation.
・Transactions with clients are conducted between the Japanese branch and the foreign corporation, tending to complicate tax handling.

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For a Representative Office

・It is a part of the foreign corporation, and rights and obligations are attributed to the foreign corporation.
・Transactions with clients are often conducted by the representative on a personal basis, so rights and obligations are attributed to the representative.

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Understanding these differences is crucial for conducting business activities appropriately in Japan, and a strategic approach tailored to each form is necessary.

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