Flow to open branch
ome foreign companies do their businesses with Japanese branch. Let’s see how to set up branch.
Flows for registration:
1: Research of the similar trade names
Legally it’s allowed to use the identical trade name to another company. But it can be considered as an unfair competition and cause some trouble. It’s better to avoid using similar trade name to well known famous companies, big companies, or companies located near to the head office of company to open.
We can do the research instead of you. It’s better to think 2 or 3 trade names before starting procedures.
2. Decide location of Japanese branch
Location of office is one of the registered matters. Normally you will need to rent a place to use it as registered head office.
Residential property can be also used as registered office. But if you need some type of business license, you need to check its requirement. You can’t get some types of licenses if the lease agreement is for residential purpose.
3. Purchase a company seals
It’s required to register a company seal to Japanese legal affair bureau (Homukyoku). Registered seal can be used same as the signature of the registered representative of the company. For many procedures, it’s required in Japan.
Normally Japanese companies purchase 3 seals for their business. One rounded seal for registered seal, another rounded one for seal registered to the banks, and squared one for putting on invoices.
We can buy it for you, if you want. It has price range depending on the numbers of seals to purchase, and their materials.
4. Prepare notarized affidavit or declaration
A director of parent company make notarized affidavit or declaration specifying required matter for registration of branch. It is one of the required documents.
5. Notification to Bank of Japan
Bank of Japan is not normal bank. It is Japanese national bank and something like government. They oversees investment from overseas. It is not always required to submit notification to it, if it’s branch. But depending on their business to do in Japan, prior notification is required.
6. Application for the registration
It takes 90,000 yen, as registration tax.
7. Branch is registered
It takes 1-3 weeks from the date of the application. After it’s done, you can get company certificates of branch of your company.
Procedures after the establishment
1. Notification to tax office
It’s required to submit notifications to the tax office which has jurisdiction over head office of the company. It is about commencement of business. It must be submitted within 2 months after the establishment.
The date of establishment is not the date when the registration is done. It is the date of application for registration, as you can see it in company certificate.
2. Creation of corporate bank account
You can apply for bank account. You need a company certificate to apply for one. Generally speaking branch is more difficult to make bank account than subsidiary.
3. Apply for business licenses
Certain types of businesses require license to start related businesses. For applications for most of licenses, company certificate is required.
4. Apply for visa of employee
Intra-company Transferee is convenient status for employees of foreign company’s branch.