Japan Branch Office |
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A Japan branch office is a popular way for foreign companies to conduct business in Japan. Although a Japan branch office does not have its own legal corporate status in Japan, it can open corporate bank accounts and lease real estate in its own name. The following information will help you determine whether a Japan branch office is the optimum corporate solution to meet your business objectives. |
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| Advantages of a Japan branch office | ||||||||||||||||
1. |
A Japan branch office is a good way for international companies to legally conduct business in Japan, including signing contracts in Japan, retailing goods in the country, importing raw materials and exporting finished products. |
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2. |
A Japan branch office has no capital requirements. A minimum of one director and one shareholder is required for a Japan Branch Office. While a resident director or shareholder is not required, a resident company representative is required. |
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3. |
There are few restrictions on the activities of a Japan branch office. A Japan branch office can hire staff of any nationality. |
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| Disadvantages of a Japan branch office | ||||||||||||||||
1. |
A Japan Branch Office is liable for corporate tax of 22% on income up to 8 million yen (provided total equity is under 100 million yen), and 30% on income over 8 million yen. In addition, companies are subject to pay local and corporate inhabitant taxes so effective tax rates can reach up to 44%. |
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2. |
A Japan branch office is required to rent office space in Japan, and submit a tenancy agreement prior to incorporation. |
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4. |
Corporate shareholders and directors are not permitted. |
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| 4. | A Japan branch office is not a separate legal entity from the Head Office and therefore the Head Office is liable for the Branch’s debts. |
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| 5. | A Japan branch office is required to submit an annual tax return to the Tax Bureau of the Ministry of Finance. |
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| 6. | Healy Consultants liases with the Ministry of Finance to incorporate a Japan branch office, a process which takes up to one month. |
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| 7. | Following the incorporation of a Japan branch office, it can take up to three months to obtain a work permit approval for foreign staff. |
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| Healy Consultants fees for a Japan branch office | ||||||||||||||||
International entrepreneurs should budget for Japan branch office set up fees of approximately US$32,060, depending on corporate structure and range of professional services required.
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Contact Us For more information ona Japan branch office, contact email@healyconsultants.com or call us in Tokyo at +81 345 801 776. |
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