{"id":279,"date":"2023-04-24T15:30:11","date_gmt":"2023-04-24T15:30:11","guid":{"rendered":"https:\/\/companyformationjapan.com\/?p=279"},"modified":"2023-04-24T15:30:14","modified_gmt":"2023-04-24T15:30:14","slug":"open-a-branch-vs-a-subsidiary-in-japan","status":"publish","type":"post","link":"https:\/\/companyformationjapan.com\/open-a-branch-vs-a-subsidiary-in-japan\/","title":{"rendered":"Open a Branch vs. a Subsidiary in Japan"},"content":{"rendered":"\n<p>Foreign businesses are able to expand their operations in the country through<strong>\u00a0opening a branch or subsidiary in Japan<\/strong>. In this article, our\u00a0<a href=\"https:\/\/www.companyformationjapan.com\/about-us\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>company formation consultants in Japan<\/strong><\/a>\u00a0analyze the<strong>\u00a0differences between a branch and a subsidiary<\/strong>\u00a0here.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/companyformationjapan.com\/open-a-branch-vs-a-subsidiary-in-japan\/#a-brief-comparison-between-branches-and-subsidiaries-in-japan\" title=\"A brief comparison between branches and subsidiaries in Japan\">A brief comparison between branches and subsidiaries in Japan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/companyformationjapan.com\/open-a-branch-vs-a-subsidiary-in-japan\/#characteristics-of-branches-and-subsidiaries-in-japan\" title=\"Characteristics of branches and subsidiaries in Japan\">Characteristics of branches and subsidiaries in Japan<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"a-brief-comparison-between-branches-and-subsidiaries-in-japan\"><\/span><strong>A brief comparison between branches and subsidiaries in Japan<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.companyformationjapan.com\/set-up-a-branch-in-japan\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>A branch in Japan<\/strong><\/a>&nbsp;is easier to set up and less expensive, however, it lacks certain advantages which come with&nbsp;<strong>a subsidiary&nbsp;<\/strong>in the country.<\/p>\n\n\n\n<p><strong>Subsidiaries in Japan<\/strong>&nbsp;are usually opened as Kabushiki Kaisha (KK), which is a joint stock firm, or a&nbsp;<a href=\"https:\/\/www.companyformationjapan.com\/open-a-llc-in-japan\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Godo Kaisha (GK)<\/strong><\/a>, which is a limited liability kind of company.<\/p>\n\n\n\n<p><strong>Subsidiaries<\/strong>&nbsp;in this county are regarded as being more ingrained to the local business market because of their status as domestic legal entities. Our&nbsp;<strong>Japan company formation<\/strong>&nbsp;advisors can offer more details on this matter, as well as assistance related to<strong>&nbsp;setting up a company in Japan<\/strong>.<\/p>\n\n\n\n<p>The&nbsp;<strong>branch office in Japan<\/strong>&nbsp;is structured as an extension of the parent company, which implies that the parent company has to absorb all liabilities created by the branch in Japan.<\/p>\n\n\n\n<p>On the contrary, the&nbsp;<strong>subsidiary in Japan<\/strong>&nbsp;is organized as a separate entity, having flexible connections with the original corporation.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.companyformationjapan.com\/open-a-subsidiary-in-japan\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Subsidiaries<\/strong><\/a>&nbsp;have more legal authority to act independently and can assume responsibilities and liabilities, separately from the foreign parent company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"characteristics-of-branches-and-subsidiaries-in-japan\"><\/span><strong>Characteristics of branches and subsidiaries in Japan<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here are a few characteristics of the&nbsp;<strong>branches in Japan<\/strong>:<\/p>\n\n\n\n<ul>\n<li>\u2022 They can undertake commercial activities;<\/li>\n\n\n\n<li>\u2022 They have less credibility;<\/li>\n\n\n\n<li>\u2022 They are the least costly to open;<\/li>\n\n\n\n<li>\u2022 They might seem unconsistent;<\/li>\n\n\n\n<li>\u2022 The set-up costs are around JPY 150,000.<\/li>\n<\/ul>\n\n\n\n<p>As about a&nbsp;<strong>Kabushiki Kaisha (KK)<\/strong>, this type of subsidiary is characterized by:<\/p>\n\n\n\n<ul>\n<li>\u2022 Being most similar to a C-corporation in the USA;<\/li>\n\n\n\n<li>\u2022 Having a strong credibility;<\/li>\n\n\n\n<li>\u2022 Appears to be more stable, and is extremely trusted by local clients and employees;<\/li>\n\n\n\n<li>\u2022 Our&nbsp;<a href=\"https:\/\/www.companyformationjapan.com\/company-incorporation-japan\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>company registration<\/strong><\/a>&nbsp;agents&nbsp;<strong>in Japan&nbsp;<\/strong>can offer more characteristics of a KK company in the country.<\/li>\n<\/ul>\n\n\n\n<p>Our team offers complete assistance for the incorporation of branches and\/or subsidiaries in Japan. Moreover, we are also able to answer questions about gaining&nbsp;<strong>Japanese residency<\/strong>&nbsp;through the Business Manager visa, which can be an option for foreign professionals appointed in Japan. You can reach out to our team for more information about the conditions and the application process.<\/p>\n\n\n\n<p>If you have questions about&nbsp;<strong>immigration to Japan<\/strong>, you should know that the Business Manager visa is not the only route for medium to long term stay in the country. There are other categories of visas, such as those for other types of highly qualified professionals, that allow foreign nationals to remain in Japan. After a minimum number of consecutive years spent in the country, one can apply for permanent residency.&nbsp;<\/p>\n\n\n\n<p>If you need to know more about the<strong>&nbsp;pros and cons of a branch vs a subsidiary in Japan<\/strong>, or for help related to<strong>&nbsp;starting a company in Japan<\/strong>, we invite you to&nbsp;<a href=\"https:\/\/www.companyformationjapan.com\/contact\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>get in touch<\/strong><\/a>&nbsp;with us.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Foreign businesses are able to expand their operations in the country through\u00a0opening a branch or subsidiary in Japan. In this article, our\u00a0company formation consultants in Japan\u00a0analyze the\u00a0differences between a branch and a subsidiary\u00a0here. A brief comparison between branches and subsidiaries in Japan A branch in Japan&nbsp;is easier to set up and less expensive, however, it [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":100,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[38,12,14,117,118,11,26],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Open a Branch vs. a Subsidiary in Japan<\/title>\n<meta name=\"description\" content=\"We describe the differences between opening a branch vs. a subsidiary in Japan. 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