Frequently Asked Questions

Below are a few frequently asked questions we get about expanding your business to Japan. Since every situation is different and every company has unique needs, we encourage that you Contact Us to get more detailed information about how JETRO can help your business in Japan.

How do I decide between a wholly owned subsidiary or branch office?

One of the biggest considerations when deciding between a wholly owned subsidiary and a branch office is the tax implication of each, and this depends on a number of factors including the size of the parent company, the accounting method used, and other factors. Contact Us to discuss which type is best for your business.

What is the cost to establish an office in Japan?

The initial set-up cost (company registration and legal fees only) for a wholly owned subsidiary and a branch is approximately $9,000 and $6,000, respectively. Contact Us to get a more specific estimate for your business.

Are there any incentives available to foreign companies who set up an office in Japan?

The Japanese government offers a number of subsidies and other incentives to qualified companies, depending on a number of factors including the size, location, and type of the investment. Contact Us to find out if your business qualifies.

What are the visa requirements for our expatriate employees to work in Japan?

Expatriate employees (non-Japanese citizens) must obtain the appropriate working visa in order to work in Japan long-term, and this typically requires that the employer establish a legally registered company in Japan. Contact Us to get more information about work visa.

Is it possible to hire an employee before setting up an office in Japan?

It is possible to hire an individual in Japan before setting up an office, but the individual will be considered a contracted worker or an employee of the parent company, which has tax, benefit, and other implications that are different than if the individual were an actual employee of an office in Japan. Contact Us to get more information about hiring laws in Japan.

What benefits do I need to provide to our new employee(s) in Japan?

Required benefits provided to employees generally fall into the categories of social insurance (workers' accident compensation and unemployment insurance) and welfare (health insurance and pension). Contact Us to more information about required employee benefits in Japan.

What types of non-taxable income can an employer offer to a managing director employee in Japan?

Commuting allowances, corporate pension, entertainment expenses, and some housing and travel expenses may be considered non-taxable income. Contact Us to learn more about non-taxable income.

Can we offer stock options to an employee in Japan?

Yes.

Does our Japan office require a Board of Directors?

Not necessarily, but this depends on the type of structure chosen for the Japan office. Contact Us to find out if your business requires a Board of Directors.

Can we set up a bank account in Japan that allows us to do on-line banking in English?

Yes, but a corporate bank account can only be established upon legally registering a wholly owned subsidiary or a branch office in Japan. Contact Us to learn more about business banking in Japan.

If you did not find the answer you were looking for above or have follow-up questions, Contact Us and a local JETRO representative will contact you shortly.