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Open a Subsidiary in Japan
Updated on Thursday 21st December 2017 Rate this article
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A subsidiary in Japan represents an independent entity set up according to the Japanese legislation, with a foreign entity owning its shares. The foreign entity may be the sole shareholder of the subsidiary in Japan, though it may be possible to have other shareholders as well, be it an individual or a company, local or foreign.
In this article, our company formation advisors in Japan present you with the main aspects of setting up a subsidiary in this country.
Establishment of a subsidiary in Japan
Subsidiaries in Japan are generally set up as a Kabushiki Kaisha (KK), which represents a joint stock entity, or a Godo Kaisha (GK), which is a limited liability entity.
Subsidiaries are perceived as offering more security in the local market compared to other types of entities because of their status as a Japanese company. Our company registration representatives in Japan can offer more details on this matter.
A subsidiary in Japan can be structured as a separate business with active connections to the parent company.
A subsidiary in this country has more legal authority to act independently and may assume liabilities and responsibilities separate from the parent company.
Registration of KK subsidiaries in Japan
In order to open a KK subsidiary in Japan, the following criteria have to be met:
• A minimum share capital of JPY 1;
• There are no limitations on the shareholders’ numbers;
• It is possible to name non-resident directors, as long as the representative director is a resident in Japan;
• Usually, two representative directors are appointed;
• If foreign staff is employed to work in Japan, they have to obtain a visa or a status of residence;
• If required by the activities undertaken by the business, certain business licenses or permissions from the local authorities have to be obtained.
If you would like to know more about starting a business in Japan, or would like to open a Japanese subsidiary, we kindly invite you to contact our Japan company formation professionals.
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