 |
 |
|
|
| |
Establish a business in Japan
Characteristics of a representative office, a branch office
and a subsidiary company.
Foreign companies that plan to establish business in Japan can choose a
type of operation from three different options - representative office,
branch office or subsidiary company. Each operation has characteristic
as below.
| |
|
Representative
office |
Branch office |
Subsidiary company |
| 1 |
Role |
Assistance for business operation |
Base for business operation |
Base for business operation |
| 2 |
Profit-earning activity |
Impossible |
Possible |
Possible |
| 3 |
Registration |
Not required |
Required |
Required |
| 4 |
Capital |
Unnecessary |
Unnecessary |
Minimum 1 yen
(5 million yen in order to obtain an Investor visa) |
| 5 |
Setting up costs |
Unnecessary |
Around
150,000～
250,000yen |
Around
250,000～
350,000yen + Capital
(Co.,Ltd.) |
| 6 |
Company name |
Freely decide |
Same as the parent company |
Freely decide |
| 7 |
Representative |
Unnecessary |
Representative in Japan (resident) |
At least one Representative Director (resident) |
| 8 |
Opening a bank account |
Impossible |
Possible |
Possible |
| 9 |
Social insurance |
Required for the office with 5 or more employees |
Required |
Required |
| 10 |
Accouting |
Unnecessary |
Aggregated to the parent company's accounting |
Independent accounting |
| 11 |
Tax declaration |
Not required |
Required
(Financial statement prepared in head office is also required.) |
Required |
| 12 |
Tax on money transfer |
None |
None |
Withhold 20% tax in principle |
| 13 |
Inhabitant tax on per capita basis |
None |
Assessed on the basis of the parent company's capital |
Assessed on the basis of the subsidiary
company's capital |
| 14 |
The deficiency coverage by head office or parent company |
N/A |
Possible |
Impossible |
Merits and demerits of a representative office,
a branch office and a subsidiary company.
Based on the above facts, each operation has merits and demerits as below.
| |
Representative
office |
Branch office |
Subsidiary company |
| Merits |
Easy and immediate procedures for establishment
Tax-fee on money transfer to parent's campany
No duty to prepare tax declaration |
Broad rangeof activity
Tax-free on money transfer to parent's campany
High social credibility |
Independence from parent company
Broad range of activity
High social credibility |
| Demerits |
Limited activity
Low social credibility
Dependence on parent company |
Long-term and complicated procedures for establishment
Duty to prepare tax declaration
Dependence on parent company |
Long-term and complicated procedures for establishment
Duty to prepare tax declaration
Get taxed on money transfer to parent's campany |
|
| |
|
|
