Representative offices are established as locations for carrying out preparatory and supplemental tasks aimed at enabling foreign companies to engage in full-scale business operations in Japan.
These offices may conduct market surveys, collect information, purchase goods and implement publicity/advertising efforts, but they are not permitted to engage in sales activities.
These offices cannot ordinarily open bank accounts or lease real estate in its own name.
2. Branch office
In order to to engage in continuous transactions in Japan, a foreign company needs to establish a base for business operations in Japan is to set up a branch office.
A Japanese branch office provides services in Japan decided upon by an organization authorized by the foreign company. In general, the foreign company is ultimately responsible for all debts and credits generated by the activities of its Japanese branch office.
3. Subsidiary company
A foreign company must choose to establish the subsidiary company as a joint-stock corporation or limited liability company, both stipulated by Japan’s Companies Act.