Setting up a Business
Q2: What can a representative office conduct in Japan? Are there any limitations?

Yes. There are certain limitations.
Foreign companies must establish representative offices to conduct preparatory and supplemental works before starting full business operations in Japan.

The representative office may only conduct market surveys, collect information, purchase goods and create advertisements. It cannot be used to sell any goods.

The representative office does not need to be registered; however, it cannot be used to open bank accounts and may face difficulties leasing an office in Japan. The foreign parent company or person may lease an office for the business of the representative office if the owner of the relevant office building agrees. Most owners would like a corporation established in Japan as the lessee. Our firm can help the relevant negotiations with the brokers or owners as the case may be.

Because of the legal limitations, the representative office of a foreign country is not usually used before starting a business in Japan. However, it is the best option for conducting market research in Japan from an office. It means if you have decided to start a business in Japan, it is recommended to establish a corporation as soon as possible in Japan.



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