Q9: Are there differences in the event that a Japanese corporation, a Japanese branch, or a representative office is sued?

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

A: In the case of a Japanese corporation, the lawsuit is contained within Japan, but for a Japanese branch or a representative office, the lawsuit could potentially affect the foreign parent company.

For a Japanese Corporation

・If a Japanese corporation is sued, the liability naturally falls on the Japanese corporation itself.
・As the foreign parent company and the Japanese corporation are separate entities, the liability does not extend to the foreign parent company.

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For a Japanese Branch

・Since a Japanese branch is part of the foreign corporation, if it is sued, the liability extends to the foreign corporation.

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For a Representative Office

・If a representative office is sued, the responsibility often falls on the representative who made the contracts, but liability can also extend to the foreign corporation itself.
・Therefore, the scope of lawsuit liability varies depending on the type of establishment. Companies need to consider this carefully and manage risks appropriately.

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