VISA Q and A on FM COCOLO 76.5 MHz
Starting a Repersentative Office
 On Aired Data: June 19, 2001
Summary of the
Aired Program
Client:
A company based in Shanghai, and is involved with bamboo items such as furniture, tableware, daily use items, and others. They have experience in exporting to Singapore, South Korea, as well as sales within China.

Case:

Now they have plans to start a business in Japan, starting off by opening a representative office in Osaka. For the time being, they would like to send an employee to do a market research on the Japanese preferences, trend, lifestyle, advertising and such. Our client is curious of what he/she has to do in order to open a representative office.

There are three ways for a foreign-based company to start a business in Japan. One is to open a representative office, two is to open a Japanese branch office, and three is to establish a Japanese corporation. Probably the best way for our client would be to establish a Japanese corporation, but this involves high risks because it is the same as starting a business in Japan.So before going through all the trouble, good advice for our client would be to open a representative office for the time being, so they can study the Japanese market.

At a representative office, a representative from an overseas firm sets a simple office in Japan, and from there, he/she will send various reports to the head office. The first thing this company must do is to find an office space. If this person has an acquaintance in Japan, it maybe best to ask him/her for assistance, but if not, an employee from the company should come to Japan under the 90 day business visa to prepare the conditions before the representative is sent to Japan. If this is also difficult they should consult with a professional like Mr. Nakano.

The next step would be to apply for the eligibility of the worker that is planning to work in Japan. Naturally, the procedure is taken in Japan, and if no one can take care of it here, you should consult with a Gyouseishoshi Lawyer, who is also granted the privilege to take care of the application as a proxy. Keep in mind that this procedure can only be done by a person who is legally granted the privilege to be a proxy by the Minister of Justice. The employee being sent over to Japan will stay under the Intracompany Transferee status. This status is granted to employees of overseas companies who are sent over to Japan to work as an engineer or human knowledge, or any other international activities.

Now you may have the question, what is the difference between a “branch office” and a “representative office”. The answer is, at a branch office, you can do sales, but at a representative office, you are prohibited to do any sales activities. This is because a representative office is considered as an office that just prepares the branch office.

Lastly, the documents you need to start an office is the following:

1)a copy of the passport of the employee being sent to Japan

2)a signed contract of the rent of the office

3)a planning sheet of what kind of activities the representative office will do

4)proof of employment

5)a written resume of the employee

6)some kind of brochure that shows the activities of the company

Also, please keep in mind that the employee who is going to be sent to Japan must have one year or more experience in working for the comapany, and has experience in engineering, human knowledge and international activities.

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