What type of company splits are there in Japan?

Should IP licenses be registered with the Japanese Patent Office?
July 18, 2017
Why is it important to have a Japanese contract translated by an attorney?
July 24, 2017
Show all

Splitting a company can be a valuable strategic tactic for corporations that want to change the focus of their business or split into two more specialized companies.  There are two types of company splits in Japan: absorption type splits and incorporation type splits.

An absorption type split involves a company spinning off part of its business to form a new split company.  The original company remains and can continue to do business alongside the new split company.

In an incorporation type split, the original company will incorporate two or more new companies to succeed the rights and obligations of the original company.

If you would like to know more about company splits and how they might benefit your business, please contact our office for a legal consultation.