Which entity fits your Japan entry?
Short answer: research only points to a representative office. Selling in Japan needs a registered form: a branch if the parent can carry the liability, otherwise a subsidiary, usually a KK if you may raise equity and a GK if you want lighter formalities.
Compare the four forms
| Representative office | Branch | GK (Godo-Kaisha) | KK (Kabushiki-Kaisha) | |
|---|---|---|---|---|
| Can make sales | No | Yes | Yes | Yes |
| Registration | Not required | Required | Required | Required |
| Capital | None listed | No capital | 1 JPY or more | 1 JPY or more |
| Parent's liability | Not a separate company | Unlimited | Limited to contribution | Limited to contribution |
| Regular general meeting | None listed | Not required | Not required | In principle, every year |
| Public offering of shares | No | No | Not possible | Possible |
| Own bank account and lease | Not ordinarily | Check with your bank | Check with your bank | Check with your bank |
Sources: JETRO 1.1, JETRO 1.2. "Check with your bank" means JETRO's pages do not settle it for your case.
FAQ
Can a representative office in Japan make sales?
No. JETRO says representative offices may do market surveys, collect information, purchase goods and run publicity, but are not permitted to engage in sales activities.
Does a branch office in Japan need capital?
No capital is required for a branch office, according to JETRO's comparison table. The trade-off is that the foreign parent is ultimately responsible for the branch's debts.
What is the minimum capital for a KK or GK in Japan?
JETRO's comparison lists 1 JPY or more for both a Kabushiki-Kaisha (KK) and a Godo-Kaisha (GK). Check what your bank, your visa path and your cash needs call for, since those can require far more.
What is the main difference between a KK and a GK?
A KK generally holds a yearly shareholders' meeting and can offer shares to the public. A GK does not need a regular members' meeting and cannot make a public offering, and it can later be reorganized into a KK.
General information only, not legal, tax or immigration advice. Rules change, so confirm with the official source and a licensed professional before you act. Tax treatment, including how your home country treats each form, is not covered here: ask a tax professional.