I. Former "Yugen Kaisha"

The New Corporate Law no longer accepts to establish a yugen kaisha. Current yugen kaisha can exist without any registration and limitation of period. In this case, yugen kaisha shall be called as Tokurei yugen kaisha. There is option that yugen kaisha shall change status to kabushiki kaisha by registration of closure of yugen kaisha and new registration of kabushiki kaisha.

II. Branch

As opposed to the setting up of a company, a branch does not require original articles of incorporation; simply take your company's existing articles of incorporation, a copy of its official registration, a commission or employment agreement with the person who will be the company's Japanese representative, as well as a sworn affidavit to your embassy in Japan and carry out the appropriate procedures. The registration process is relatively simple, and expenses start at approximately ¥100,000, however name seal expenses and services fees charged by any professionals hired still apply. There are basically no differences between the rules and restrictions that apply to the business activities of companies and those that apply to branches.

III. Representative office

This is a very effective method of setting up a business when the company is still at the advertising or market research stage of its expansion into Japan. While a representative office cannot perform actual business activities, it generally does not have to be registered, and so naturally registration costs do not apply, and no tax notices need to be submitted. To engage in business activities, a representative office would need to register as a company or branch as described above.