Japan Branch Office

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
Bearer shares allowed	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.