Post by Kreston ProWorks

We’ve been seeing a noticeable increase in companies looking to set up branch offices in Japan recently. At first glance, it makes sense. No need for separate capital, perceived simplicity, and a faster route to market. But in reality, branch structures often come with hidden complexities that aren’t always obvious at the outset. From direct liability exposure to the parent company, to stricter bank account opening requirements, higher tax scrutiny, and increased documentation obligations, the operational burden can be significantly higher than expected. In some cases, what seems like the “simpler” option can actually create more friction over time compared to a subsidiary structure. If you’re considering entering Japan, it’s worth taking a step back and evaluating the structure not just for setup, but for long-term compliance, flexibility, and risk. We’ve broken down the key considerations in more detail in our latest article. https://lnkd.in/gVvM5qtK #JapanExpansion #BusinessInJapan #MarketEntry #CorporateStructuring #ForeignInvestment #TaxJapan #KrestonProWorks