FAQ

June 3, 2024

Advanced Considerations for Global Businesses

As globalization continues to expand, understanding the intricacies of Japanese contract law becomes crucial for international businesses. This post delves into advanced topics of Japanese contract law and international trade, providing critical insights for companies engaged in cross-border transactions. Contract Interpretation and Ambiguity In Japanese contract law, the interpretation of contractual terms follows specific principles. Courts in Japan prioritize the intent of the parties involved, often examining the context and circumstances under which the contract was formed. This approach can be particularly important in cases where contract terms are ambiguous or open to multiple interpretations. Subjective vs. Objective Interpretation: Japanese […]
May 31, 2024

Navigating Contract Law in Japan and International Trade

In the increasingly globalized economy, understanding the nuances of contract law in Japan and its implications for international trade is essential for businesses looking to engage with Japanese counterparts. As a law firm specializing in international trade, we provide a comprehensive overview of the key aspects of Japanese contract law and practical considerations for foreign businesses. The Foundation of Contract Law in Japan Contract law in Japan is governed primarily by the Civil Code (Minpō), which was extensively revised in 2020 to modernize its provisions and make them more compatible with contemporary business practices. The fundamental principles of Japanese contract […]
June 10, 2022

Representative Office or Branch Office

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 […]
June 10, 2022

Establish a subsidiary in Japan

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.