Overview
Non-Japanese companies are generally prohibited from conducting business in Japan, including online business which targets Japanese residents, without registration in Japan or establishing a local entity in Japan.
When launching a business in Japan, non-Japanese companies must establish a Japanese subsidiary or appoint and register their representative in Japan. As for the subsidiary, non-Japanese companies usually choose either a joint-stock company (KK) or a limited liability company (GK). Each type of entity has pros and cons.
Non-Japanese companies can hire employees relating to business in Japan before setting up a subsidiary or appointing and registering their representative in Japan. If the employees work in Japan, Japanese employment law will apply to such employment and therefore, there will be tight restrictions on the dismissal of such employees.