How to Register a Branch Office in Japan

Thinking about starting a business or bringing your business to Japan?

Due to Japan's large economy and political stability, many foreign entrepreneurs seek business opportunities in Japan.

However, setting up a company or a branch office in Japan requires navigating complex processes and loads of paperwork.

But don't worry, because this article will walk you through everything you need to know about starting a branch office in Japan.

What is a branch office in Japan?

In Japan, a branch office is defined as a facility established separately from the head office that is officially registered. 

The head office can delegate some of its authority to the branch, allowing it to make decisions related to operations or hiring.

Since the scope of delegated authority can be freely determined, it is also possible to limit the branch’s authority to a minimum for risk management purposes.

Branch Office vs. Subsidiaries (KK & GK)

There are multiple ways to start a business in Japan. 

If you already have a company overseas and wish to open a business in Japan as an extension of a foreign company, then a branch office is a good idea.

However, if you wish to start a business in Japan as a separate legal entity from the head office, you can also consider establishing subsidiaries (Kabushiki Kaisha or Godo Kaisha).

Here are the differences between a branch office and a subsidiary.

👉Comparison: GK vs. KK

Unlike subsidiaries, a branch office is not considered a separate legal entity. Instead, it operates as an extension of the foreign head office, making it a practical option for companies that want to enter the Japanese market quickly without going through the full incorporation process.

Branch Office vs. Representative Office

A branch office and a representative office are similar and can be confusing, but there is a large difference that you need to keep in mind.

A representative office also requires a head office, just like a branch office. 

However, a representative office is not a legal entity and must only operate for non-commercial purposes under a parent company. 

A representative office is often used for the preparation for establishing a branch office, market research, non-commercial PR, or liaison activities. It cannot engage in activities that generate revenue or profit.

Examples of foreign companies establishing branch offices in Japan

Here are some common use cases of foreign companies opening branch offices in Japan.

1. A foreign IT company opening a support center in Japan

2. A foreign manufacturer (e.g., auto parts) establishing a sales base in Japan

3. An overseas financial institution (e.g,. banks) opening a branch in Japan

Pros and cons of a branch office

Here are some pros and cons of establishing a branch office in Japan.

Pros of a branch office

• The establishment process is relatively simple and cost-effective.

• The head office's expertise and technology can be directly utilized.

• Business results in Japan can be reflected in the head office's performance.

• Flexible adjustments to business development in Japan are possible.

👉Read also: 【2025】The Real Cost of Starting a Business in Japan

Cons of a branch office

• Compared to a Japanese corporation, the branch may have lower social credibility.

• The head office is responsible for the business activities in Japan.

• There may be tax-related restrictions.

Step-by-Step Guide to Branch Office Registration

Step 1: Appoint a representative in Japan

You must appoint a representative for the Japan branch. 

This person can be either Japanese or a foreign national, but must have a residential address in Japan. If you appoint multiple representatives, it is acceptable as long as at least one resides in Japan.

Step 2: Confirm trade name and business eligibility

Conduct research on the trade name (商号 Shogo) to avoid duplication or legal issues.

At the same time, confirm that your intended business activities comply with Japanese regulations.

Step 3: Prepare the required documents for registration

The following documents are required to register the Japan branch:

1. A document to acknowledge the existence of the head office

2. A document certifying the qualifications of the representative in Japan

3. A copy of the Articles of Incorporation of the foreign company or other documents sufficient to identify the nature of the foreign company

4. Translation of the 3 documents above

5. If there is a provision regarding the method of public notice under Article 939, Paragraph 2 of the Companies Act, a document certifying this must be provided *It is common practice to consolidate the documents above into a single affidavit

Step 4: Notarize the Affidavit

Submit the Affidavit to a notary public or Japanese embassy/consulate in the country where the foreign head office is located. (Procedures vary by country, so confirm the exact requirements in advance.)

If notarization is done at a Japanese embassy or consulate, fees typically range from 500 to 2,000 yen.

Step 5: Apply for registration at the Legal Affairs Bureau

Prepare the registration application and submit it along with the required documents to the Legal Affairs Bureau with jurisdiction over the branch office location.

The following documents are required for registration at the Legal Affairs Bureau:

1. Affidavit

2. Original and Japanese translation of the foreign company’s certificate of registration

3. Representative’s registered personal seal (実印 Jitsuin) and certificate of seal registeration (印鑑証明書 Inkan Shomeisho) 

4. Corporate seal(s) to be used in Japan (at least one official seal is required)

It takes approximately 1 to 2 weeks from document submission to completion of registration.

Tax and other obligations for branch offices

After the branch office registration is completed, there are obligations to follow.

1. Notify/file at the tax office

   • Notification of Incorporation

   • Notification on the Establishment of a Salary-Paying Office

   • Application for Filing the Blue Return

   • Application for Special Approval Concerning Payment Date of Income Tax Withheld at the Source

2. Notify/file at a Labor Standard Inspection Office

   • Notice of Establishment of Labor Insurance Affiliation

   • Tax Return for Estimated Insurance Premium for Labor Insurance

3. Notify/file at a Japan Pension Service Office

   • Notification of New Application for Health Insurance and Employee's Pension

   • Notification of the Acquisition of Eligibility for Health Insurance and Employee's Pension

   • Notification of Dependents Eligible for Health Insurance

4. Notify/file at a Public Employment Security Office

   • Notice of Establishment of a Workplace Covered by Employment Insurance

   • Notice of Acquisition of Eligibility for Employment Insurance

Support for Branch Office Setup in Japan

Working with a bilingual legal advisor is strongly recommended for navigating branch office registration, employment law, and ongoing compliance.

👉 English-speaking corporate lawyers

👉Bilingual accountants

👉Immigration lawyers

💡MailMate offers bilingual incorporation/branch office setup support and after services tailored for foreign business owners to expand to Japan

Mailmate's incorporation/branch office setup support + virtual mail services are a bilingual service for foreign entrepreneurs who want to start a business in Japan.

• Incorporation support: MailMate helps with company registration applications, business addresses, and much more!

• Japanese phone number service with bilingual receptionist: MailMate will answer incoming calls and relay the message to you.

• Virtual mail service: MailMate receives your business mail at a virtual address, scans and uploads it to your dashboard, where you can read, forward, or request translation for Japanese documents.

• Bill payment service: MailMate also offers a bill payment service and will pay it on your behalf by taking it to the local convenience store, so that you will never miss a payment.

MailMate has been helping entrepreneurs successfully start companies in Japan!

FAQs about Branch Offices in Japan

Q: What is the difference between a branch office and a subsidiary in Japan?

A: A branch office is an extension of your foreign company and is not considered a separate legal entity. In contrast, a subsidiary (KK or GK) is an independent legal entity incorporated under Japanese law. Subsidiaries generally offer higher social credibility but involve more complex establishment procedures.

Q: Who can become a branch office representative?

A: The representative of a branch office can be either a Japanese or a foreign national, but this person needs to have a residential address in Japan. If you appoint multiple representatives, it is acceptable as long as at least one resides in Japan.

Q: Can a branch office engage in sales and revenue-generating activities?

A: Yes. A properly registered branch office can conduct business activities that generate revenue. This is a key difference from a representative office, which is limited to non-commercial activities.

Q: Is professional support recommended for setting up a branch office?

A: Yes. Working with bilingual legal, accounting, and incorporation experts is highly recommended to ensure smooth registration and ongoing compliance.

In closing

Establishing a branch office in Japan is a practical option for foreign companies looking to expand their operations without creating a separate legal entity. 

The process is relatively simple and cost-effective compared to setting up a subsidiary, and it allows you to leverage your existing brand, expertise, and resources directly in the Japanese market.

Unlike establishing a subsidiary, opening a branch office also allows you to meet market demands in Japan more quickly. 

That said, a branch office may come with limitations, such as lower social credibility compared to a Japanese corporation and potential challenges with banking or certain contracts. 

Carefully consider your business goals, structure, and long-term plans before deciding.

If a branch office is the right fit for your company, working with bilingual experts such as MailMate will make the process significantly smoother. From legal registration to ongoing compliance, having experienced support can save you time, money, and stress!