Branch Office in Japan: How to Register, Costs, and Tax (2026)

A branch office in Japan is a registered business location of a foreign company. It is not a separate legal entity, so your overseas head office stays fully liable.

Registration costs ¥90,000 in registration license tax. Filing takes about one to two weeks, but plan for roughly two months end to end.

Before you start, you will need:

• A representative in Japan, with at least one living in Japan

• An office address in Japan, unless you register a representative only

• An affidavit certified by your home country or its embassy in Japan

• Japanese translations of your head office documents

Many foreign companies use a branch to start a business in Japan quickly. Others compare it with franchise opportunities or a subsidiary. This guide covers each step, the costs, and your tax duties.

What is a branch office in Japan?

A branch is an extension of a foreign company that operates in another country. It shares the parent company’s legal identity, so the parent stays responsible for its obligations.

Under Japan’s Companies Act, the legal term is 営業所 (eigyōsho), meaning place of business. You can still call it 支店 (shiten), 支社 (shisha), or “Japan Office.”

A foreign company must register before it conducts continuous business in Japan. Market research and information gathering alone do not count as continuous business.

The head office decides how much authority to give the branch. You can keep that authority narrow to manage risk.

Branch Office vs. Subsidiaries (KK & GK)

There are three common ways to enter Japan. A branch suits companies that want to operate as an extension of the head office.

A subsidiary, either a Kabushiki Kaisha or Godo Kaisha, is a separate Japanese company. A representative office cannot earn revenue at all.

	Branch	Subsidiary (KK or GK)	Representative office
Legal status	Extension of the foreign company	Separate Japanese company	No legal status
Can earn revenue	Yes	Yes	No
Registration	Legal Affairs Bureau	Legal Affairs Bureau	None
Government fees	¥90,000 registration tax, plus translation and copies	KK about ¥170,000 to ¥250,000; GK about ¥60,000 to ¥100,000	None
Liability	Parent company fully liable	Limited to the investment	Parent company
Local representative	At least one must live in Japan	Not required since 2015	Not required
Annual public notice	Balance sheet notice (KK-type parents)	KK: balance sheet notice; GK: none	None

👉 Comparison: GK vs. KK

A branch skips the full incorporation process. That makes it a fast way to enter the Japanese market

Is a branch office the right choice for your business in Japan?

A branch office is not the right structure for every foreign company. Whether it is suitable depends on your business goals, risk tolerance, and long-term plans in Japan.

A branch office in Japan may be suitable if:

• You want to enter the Japanese market quickly without incorporating a new company

• You plan to operate as an extension of your foreign head office, not as a separate legal entity

• You do not need to raise capital in Japan

• You want direct control by the overseas headquarters

• Your Japanese operations will focus on sales, support, or limited local activities

A subsidiary (KK or GK) may be a better option if:

• You want to establish a separate legal entity under Japanese law

• You need higher credibility with Japanese banks, clients, or business partners

• You plan to raise funds or issue equity in Japan

• You want to limit the parent company’s legal and financial liability

• You are building a long-term, Japan-based operation with local governance

Key decision takeaway

A branch offers speed, simplicity, and lower costs. The trade-off is full parent liability and less local independence.

A subsidiary takes more setup effort. In return, it gives legal separation, credibility, and room for long-term growth.

When a representative office fits better

A representative office suits market research, PR, and liaison work. It cannot sign sales contracts or earn revenue.

Many companies open a representative office first. They then register a branch once they are ready to sell.

👉 See our full representative office guide.

Common reasons foreign companies open a Japan branch

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

• 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: The real cost of starting a business in Japan

Cons

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

• Some banks and enterprise clients prefer to work with a Japanese subsidiary.

• The branch counts as a permanent establishment, so Japan taxes its income. Transactions with the head office face transfer pricing review.

Step-by-Step Guide to Branch Office Registration

Step 1: Appoint a representative in Japan

Appoint a representative in Japan (日本における代表者, nihon ni okeru daihyōsha). This person can be Japanese or a foreign national.

At least one representative must have a residential address in Japan. You can appoint several, as long as one lives in Japan.

The representative holds authority over all acts for the Japan business, including legal proceedings. Choose someone you trust.

Step 2: Confirm trade name and business eligibility

Your branch registers under the foreign company’s own name. Check that no identical name is already registered at the same address in Japan.

At the same time, confirm that your planned activities need no extra licenses. Some industries, such as finance, need regulatory approval first.

Step 3: Prepare the required documents for registration

The following documents are required to register the Japan branch:

• A document to acknowledge the existence of the head office

• A document certifying the qualifications of the representative in Japan

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

• Japanese translations of the 3 documents above (a document translation service can help)

• 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

Have the affidavit certified before you file. You have two options:

• In your home country: a notary or competent authority certifies it. Your home-country representative signs.

• In Japan: your home country’s embassy or consulate certifies it. Your representative in Japan signs.

Fees and procedures vary by country, so confirm them in advance.

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:

• Either an affidavit or the foreign company’s certificate of registration with a Japanese translation

• Representative’s registered personal seal (実印 Jitsuin) and certificate of seal registration (印鑑証明書 Inkan Shomeisho)

• Corporate seal to be used in Japan (required for paper filings; confirm online filing rules with your scrivener)

Pay the ¥90,000 registration license tax when you file. Registration usually takes one to two weeks after filing.

Keep the registration certificates. You will need them to open a corporate bank account.

Branch registration costs and timeline

What it costs

Item	Cost
Registration license tax, with an office	¥90,000
Registration license tax, representative only (no office)	¥60,000
Translation of head office documents	Varies by length and language
Affidavit certification	Varies by country
Certified copies	A few thousand yen

You can register only a representative in Japan first and add an office later. This costs ¥60,000 instead of ¥90,000.

How long it takes

Stage	Typical timing
Prepare documents and translations	A few weeks
Certify the affidavit	Depends on your country
Legal Affairs Bureau registration	One to two weeks after filing
Total, start to certificates	About two months

Tax and other obligations for branch offices

Tax, liability, and permanent establishment

A branch office in Japan is not a separate legal entity. As a result, the foreign head office remains fully responsible for the branch’s obligations, liabilities, and compliance in Japan.

How Japan taxes a branch

• Income attributable to the Japan branch is generally subject to Japanese corporate tax

• The branch is treated as a permanent establishment (PE) for tax purposes in most cases

• The Japanese tax authorities may review transactions between the branch and the head office to ensure arm’s-length pricing

• The parent company files Japanese corporate tax returns for branch income. See our corporate tax in Japan guide.

Legal and financial liability

• The foreign parent company is directly liable for contracts, debts, and legal claims arising from the branch’s operations

• There is no legal separation between the branch office and the head office

• Legal disputes or compliance issues in Japan may affect the parent company globally

Permanent establishment (PE) risk

• A branch usually counts as a permanent establishment under Japanese law and tax treaties, such as the US-Japan tax treaty.

• PE status may trigger corporate income tax, local tax, and filing obligations in Japan

• The scope of taxable income depends on the activities performed in Japan and the authority granted to the branch

Practical implications for foreign companies

• Branch offices may face greater scrutiny from tax authorities compared to representative offices

• Certain banks, partners, or government programs may prefer or require a Japanese subsidiary

• Professional tax and legal advice is strongly recommended before choosing a branch office structure

Legal obligations after branch office registration

After registration, you have ongoing duties in Japan.

Notify the tax office:

• Notification of Becoming a Foreign Ordinary Corporation (外国普通法人となった旨の届出書)

• 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

If the branch employs staff, these filings also apply:

Notify/file at a Labor Standards Inspection Office:

• Notice of Establishment of Labor Insurance Affiliation

• Tax Return for Estimated Insurance Premium for Labor Insurance

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

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

Ongoing legal duties

• Annual balance sheet notice: If your parent resembles a KK, publish its balance sheet equivalent in Japan each year.

• Change registrations: File changes within three weeks of the notice reaching your representative. This covers new representatives, a head office move, or a new branch address.

• Keep a resident representative: At least one representative must always live in Japan.

Getting help with your Japan branch

A bilingual advisor helps with registration, employment law, and compliance. For the registration itself, a judicial scrivener handles the filing. For contracts, see our list of business lawyers in Japan.

👉 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!

Frequently asked questions

What is a branch office in Japan?

A branch office is a registered business location of a foreign company in Japan. It is not a separate legal entity, so the foreign head office is fully responsible for it. A branch can sign contracts and earn revenue once it registers with the Legal Affairs Bureau.

How much does it cost to register a branch office in Japan?

The registration license tax is ¥90,000 when you set up an office in Japan. If you only register a representative in Japan without an office, the tax is ¥60,000. Budget extra for translations, affidavit certification, and certified copies. Professional fees come on top.

How long does branch registration take in Japan?

Registration usually takes one to two weeks after you file at the Legal Affairs Bureau. JETRO estimates about two months from deciding the branch details to receiving certificates. Preparing and certifying the affidavit takes most of that time.

Who can be the representative in Japan for a branch?

The representative can be a Japanese or foreign national. At least one representative must have an address in Japan. The representative has authority over all acts related to the company’s business in Japan, including legal proceedings.

Is a branch office in Japan subject to Japanese taxes?

Yes. Income attributable to the Japan branch is generally subject to Japanese corporate tax. A branch usually counts as a permanent establishment under Japanese tax law and tax treaties. The branch files a notification with the tax office after registration.

Who is liable for a branch office’s debts?

The foreign head office is fully liable. A branch has no separate legal status, so its debts, contracts, and lawsuits belong to the parent company. Companies that want to limit liability usually choose a subsidiary instead.

What is the difference between a branch, a subsidiary, and a representative office?

A branch is a registered extension of a foreign company that can earn revenue. A subsidiary, such as a KK or GK, is a separate Japanese company with its own liability. A representative office cannot earn revenue and is limited to research and liaison work.

What is a branch office called in Japanese?

The legal term is 営業所 (eigyōsho), meaning place of business. Companies can still call it 支店 (shiten), 支社 (shisha), or “Japan Office.” The person in charge is the 日本における代表者 (nihon ni okeru daihyōsha), or representative in Japan.

In closing

A Japan branch is a practical way to start selling quickly. It costs less than a subsidiary and lets you use your existing brand in the Japanese market.

The trade-off is full parent liability and lower local credibility. Some banks and partners prefer a Japanese subsidiary.

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!