Representative Director in Japan

Why is a local Representative Director in Japan needed?

According to Japanese Law corporations in Japan such as Kabushiki Kaishi needs to have at least one representative director who is a resident of Japan. Branches of foreign companies in Japan also need a representative of the branch who is a Japanese resident.
This person does not need to be a Japanese National.

What are the advantages of outsourcing the Representative Director in Japan function?

There are 2 main advantages:

Corporate Governance and Risk Management:

If the company names an employee of the company as representative, it may difficult to negotiate a resignation of this person in case of disagreement. This is due to the fact  that representative in Japan has a lot of power. Another point is that given his power the representative may commit the Japanese subsidiaries in contracts which are not  approved by headquarters. This type of issues happen because it is sometimes difficult for a new company just arriving to Japan to make a good choice of representative from day one.

Taxation

Representative Director are more heavily taxed than regular employee. For example:
– Bonus are not tax deductible unless strict conditions arr met
– Housing is not fully tax deductible

Why choose Eric Perraudin as Representative?

Eric , an ex Director of PwC, has been representing companies in Japan for more than 7 years and is now representing about 10 entities in Japan. See Eric LinkedIn profile (Some representations are not mentioned for confidentiality reasons)

Eric is supported by JMC which means that even if he is temporarily unavailable, bilingual staff of JMC will be able to help you.

Finally outsourcing services of JMC allow our clients to have a “one stop” place for all the services they need in Japan , including provision of registered address.

Do not hesitate to contact us if you have any question.