Case study

Operating a Japanese Subsidiary Offering Consulting Services

The Challenge

Although the client had for several years offered consulting services in the United States, they were now hoping to expand their business into Japan. To do so, they needed to establish a Japanese subsidiary and obtain visas to dispatch consultants from the home country to Japan. It was also critical to safeguard the firm’s proprietary know-how as a trade secret.

Project Outline

•Selection of appropriate corporate form for Japanese subsidiary based on the need for the foreign parent company to recover profits

•Preparation of a business plan for obtaining visas for consultants to be dispatched the Japanese subsidiary and visa application

•Acquisition of patent and trademark rights in Japan to ensure the company’s competitive advantage in both the U.S. and Japan

Results and Benefits

•Legally partitioning the parent company from its Japanese subsidiary companies served to severe their legal risks, and it became possible to repatriate profits in the form of stock dividends

•When trademark infringement notices arrived from companies in the home country, we could effectively respond by asserting the trademark rights acquired by the company

•While many foreign companies eventually retreat from Japan due to an inability to achieve profitability, this company’s profits are expanding

Project Steps

Before Expansion

Marketing Team: formulation of a business plan for the Japanese subsidiary

Management Team: Appraisal of best timing and corporate form for establishment of Japanese subsidiary

Legal Team: Advice regarding selection of best corporate form for Japanese subsidiary and carrying out of establishment procedures, as well as formulation of internal rules and regulations

During Expansion

Management Team: selection of expatriate personnel, formulation of a local human resources recruitment plan

Legal Team: Advice on obtaining visas and carrying out of application procedures, support for employment contracts with local employees

After Expansion

Management Team: evaluation of intellectual property rights used by subsidiary

Legal Team: advice regarding intellectual property rights strategy and support for licensing agreements

Legal Team: application for patents and trademarks in Japan

Contact us

No matter the stage of your expansion into Japan – whether you just started to consider the expansion or you are already here – our team is ready and waiting to provide consultation. Please do not hesitate to contact us.

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