Setting uo Representative Office, Japan INBOUND - Yamajo International Tax & Accounting Office

Establishing a Representative Office in Japan

Generally speaking, a foreign company can establish a presence in Japan as a Representative Office. The purpose of the Rep. Office is limited to gathering information etc.

Under the Foreign Exchange and Control Law in Japan, it is not required for a Rep. Office to any registration, approval and reporting for establishing.

However, if the Rep. Office commence a trading then it will be a PE (Permanent Establishment) from the tax point of wiew. After that the Rep. Office will be a BRANCH office and it is required to register as a branch. A Branch Office has a tax obligation for Japan source income. -> Rep office vs Branch

1. Report filing requirements

If a Rep office hire staff, the following report filing will be required.

Items	Report	File with
1. Social Securities	Report on the social securities, unemployment insurance and Labour insurance.	Social securities - Social securities office Labour insurance - Labour standard authority Unemployment insurance - Hello work
2. Paying Salary	Report on the establishment of a salary payment office for withholding tax purposes.	National tax office

2. Payroll and Bookkeeping

Many companies are controlling for Rep Office's Book in the Accounting Department of the Head-office. It must be appropriated to small office in foreign country.

However, payroll in Japan is very complicated for the head-office, especially in Expatriates' calculation, it would be suggested to ask OUTSOURCING for payroll.

(NOTICE) With consultation for set up a Representative office in Japan of a foreign company, we will charge fee by a time charge basis (JPY 37,800 per hour). The advanced cosultaion fee will be deduced if you ask us an incorporation procedure.