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

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.