A Japanese branch-office is much the same legal entity as any other branch-office you may already have in your domestic market or overseas. A branch office is simply an additional location from which your employees do business and even though they are in separate legal jurisdictions, a Japanese branch office is not a separate legal entity from its foreign parent company. All liabilities (whether debt, employee or otherwise) of a branch-office are ultimately liabilities of its parent and similarly when a branch-office sells a product or service to a customer (or distributor) it does so simply on behalf of the parent. Other than geographic location your Japanese branch-office is no different than your Dallas branch, your Boston branch or (if you are a German company) your Munich branch.

Features of Japan Branch Office

Japan Branch Office

Corporate Details

General

  • Type of Entity

 Branch Office

  • Registered Office in Japan

Yes

  • Shelf company availability

No

  • Our time to establish a new company

2 Months

  • Corporate Taxation

Yes

  • Access to Double Taxation Treaties

Yes

Share capital or equivalent

  • Standard currency

USD

  • Permitted currencies

EUR, USD, GBP, JPY

  • Minimum paid up

None

No

  • No-par-value shares allowed

No

Directors

  • Minimum number

One

  • Local required

No

  • Publicly accessible records

Yes

  • Location of meetings

Anywhere

  • Corporate directorship allowed

Yes

Shareholders

  • Minimum number

Parent Company

  • Publicly accessible records

Yes

  • Corporate shareholders allowed

Yes

  • Location of meetings

Anywhere

Company Secretary

  • Required

No

  • Local or qualified

No

Accounts

  • Requirements to prepare

Yes

  • Audit requirements

No

  • Requirements to file accounts

Yes

  • Publicly accessible accounts

Yes

Other

  • Requirement to file annual return

Yes

  • Migration of domicile permitted

Yes

Advantages of a Japan Branch Office

  1. Launching a branch office is less expensive, with simpler procedures and requirements. Registering a branch office is often much faster than registering a subsidiary, which can be advantageous if you want to commence operations as soon as possible.
  2. It can also do all the essential things a subsidiary can do, which includes: renting an office, entering business and legal contracts, hiring employees, and sending profits back to the home country.
  3. A branch office’s loss can be off set from the headquarters’ income.
  4. Common expenses accrued in headquarters can be allocated to a branch office as long as the charges are at arm’s length.
  5. Remittance of profit from a branch office to headquarters is not subject to Japanese withholding income tax.

The Valsen Advantage

  1. Speedy, Efficient and consistent Services.
  2. Relentless effort to obtain bank accounts.
  3. Expert advice on structuring options.
  4. Dedicated ongoing compliance support.