corporate

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.
June 2, 2022

Mandatory Provisions for Contracts in Japan

For the most part, parties have freedom of contract in Japan and are allowed to include, or not include, whatever they want in their contract.  However, there are exceptions to this generally lenient rule and the mandatory provisions for contracts in Japan included in the Japan Civil Code are one exception. These are mandatory provisions for contracts in Japan that are automatically inserted into the contract by law.  One example is for contracts governing the lease of land for the purpose of owning a building.  The Land Lease and House Lease Act provides that these contracts shall have a minimum […]
October 18, 2019

Limitation on IP License in Japan

It is important to consider how to put a limitation on IP licenses in Japan or any agreement involving Japan. Granting another company or person a license for intellectual property, is a powerful way to turn patented, copyrighted or trademarked ideas into a source of reoccurring profit.  However, granting a license that is too broad can result in a wasted opportunity and lost profit.  Therefore it is important to tailor the license agreement to fit exactly the parameters that fit the license fee being paid. The most common way to put a limitation on IP license in Japan is to […]