Ohara & Furukawa

The choice between a representative office or branch office is important to understand before making the decision to establish a base of operations in Japan. Establishing a Representative Office is perhaps the simplest way to establish your company’s presence in Japan. A Representative Office allows a foreign company to conduct market surveys, collect information, purchase goods and conduct PR campaigns. However, Representative Offices are not allowed to engage in sales activities. Forming a Representative Office does not require registration but many aspects of business, such as opening a bank account or renting office space, must be conducted by the head […]

There are several choices for foreign companies wishing to establish a subsidiary in Japan: 1. Establishment of a Subsidiary Company 2. Establishment of a Branch Office 3. Registration of a Representative Office. If you are planning on conducting business in Japan, the best choice is often the Joint-Stock Corporation (Kabushiki Kaisha). Kabushiki Kaisha are publicly traded companies and hence, the representative need not be a member of the Kabushiki Kaisha. The liability of members is limited to their contributions in capital, and transfers of shares may be made freely, notwithstanding restrictions in the Articles of Incorporation.