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Q_iconAre there differences in the rights and obligations of a company in Japan (subsidiary company), a branch office in Japan (branch office), and a representative office?

A_iconEach form of business has different bearers of their rights and obligations.

★ Explanation ★

1. In the case of a subsidiary company

All rights and obligations are held by the business entity itself. In the case of a subsidiary company that is considered a separate entity from a foreign corporation, the rights and obligations are attributed to the subsidiary company.

2. In the case of a branch office

In the case of a branch office, which is considered a part of a foreign corporation, the rights and obligations are attributed to the foreign corporation located in the home country.

3. In the case of a representative office

The case for a representative office is a little more complicated. Fundamentally, the rights and obligations belong to the foreign corporation in the home company. However, if a representative of a representative office or the like engages in a contract in their individual capacity, the representative will bear the legal consequences. In this case, it is the representative individual who holds the rights and obligations.