[Japan] Difference between Branch and Subsidiary

If you are considering about expanding your current business and establishing your company in Japan, you may want to know the difference between Branch and Subsidary. We would like to do a brief introduction and hope that it would help with your decision.

Branch, known as「Shiten(支店)」, is a part of your Foreign Coporation which means it belongs to a Parent Company. Tax will have to be paid based on profit generated in Japan.

Subsidiary, known as「Kogaisha(子会社)」,is a domestic corporation which means it is an independent company form a Parent Company, no matter its scale is big or not.

Moreover, subsidiaries are more friendly to customers or clients in Japan because they apply for the same regulation such as the Company Act in Japan.

For more additional information, please kindly check the following article too:

We are glad to help to establish your company in Japan and can provide professional opinion. Please feel free to contact us if you have any questions. We are looking forward to hearing from you.

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