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Modes of Business Operations in Japan

 

 

Representative Office

 

  • What it does: Used for preliminary tasks like market surveys and collecting information but cannot engage in sales.
  • Registration: No formal registration required; it cannot open bank accounts or lease real estate.

 

Branch Office

 

  • Purpose: Allows foreign companies to engage in continuous transactions in Japan.
  • Process: Requires registration; operates under the foreign company's corporate status.
  • Responsibility: Foreign company bears debts and credits generated by the branch office's activities.
  • Perks: Can open bank accounts and lease real estate in its name.

 

Subsidiary Company

 

  • Formation: Can be a joint-stock corporation (Kabushiki-Kaisha (K.K.)) or a limited liability company (Godo-Kaisha), among other types stipulated by Japan's Companies Act.
  • Separate Entity: Operates independently; foreign company bears the subsidiary's liability.

 

Understanding Kabushiki-Kaisha (KK) and Godo-Kaisha (GK):

Godou Kaisha (GK), A limited liability company

  • Simplicity: Simple registration and compliance.
  • Decision-making: Unanimous agreement required for important matters.

 

Kabushiki-Kaisha (KK), A joint-stock corporation.

  • Ownership vs. Management: Clear separation between shareholders and directors.
  • Compliance: More demanding; requires annual meetings, financial statement announcements.
  • Decision-making: Voting power linked to financial investment.
  • Insert a long beautiful story about your business and how it has started. Tell about your team members and write an article about the Founder of this business. Insert your own photos, so customers can learn about you more and trust you.