Japan Representative Office

The advantage of creating a Representative Office in Japan is to be able to carry marketing survey and information gathering activity in Japan before starting a full-scale operation, without having to support the burden of the full-size company and especially keeping a Japan Yen General Ledger and paying taxes. The Representative Office can employ people in Japan and does not need to be registered with legal authorities like the Legal Affairs Bureau. The only registration needed is with tax office for payment of employees withheld income taxes. A representative office is often used by companies that wish to employ people in Japan for support activity or before starting a full-scale activity.

The Representative Office in Japan cannot engage in sales or marketing activity. Basically, it cannot be engaged in any “for profit” activity that would give rise to a tax liability in Japan. It is a light first step to establish a company in Japan. Typical activities of a representative office are public relations, advertising, market intelligence and research and preparation to set up of a subsidiary.

 

Features of a Japan Representative Office

Japan Representative Office

Corporate Details

General

  • Type of Entity

 Representative Office

  • Registered Office in Japan

Yes

  • Shelf company availability

No

  • Our time to establish a new company

2 Months

  • Corporate Taxation

No

  • Access to Double Taxation Treaties

No

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

No

  • Audit requirements

No

  • Requirements to file accounts

No

  • Publicly accessible accounts

No

Other

  • Requirement to file annual return

No

  • Migration of domicile permitted

No

 

 Advantages of a Japanese Representative Office

  1. It is not subject to Japanese income taxes and does not have to file income tax returns.
  2. Registration for a startup is not necessary.
  3. Costs of a representative office are deductible from headquarters’ income.

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.