When deciding whether to open a branch office or subsidiary - G.K. (Godo Kaisha) or K.K. (Kabushiki Kaisha), it is important to understand the key differences. A branch office in Japan functions as a direct extension of the parent company, whereas a subsidiary is an independent legal entity. A branch office operates under the governance of the parent company, assuming its unlimited liability, and has no distinct capital requirement. Conversely, a subsidiary possesses its own governance structure, limited liability for its shareholders/members, and necessitates separate registration and capitalization.
A table that goes into greater detail about the varying business operations can be found here.
External Resources
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