201911.13
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Q_iconWhat is a pseudo-foreign company?

A_dark_iconIt is a foreign company with a head office in Japan.

★ Explanation ★

A foreign company is a corporation or other foreign organization established in accordance with foreign laws and regulations, and is considered to be the same as or similar to companies (Companies Act 2-2).

Companies Act

(Definitions)

Article 2 (Omission)

(ii) ”Foreign Company” means such any corporation incorporated under the law of a foreign country or such other foreign organization that is of the same kind as the Company or is similar to a Company;

Source: Japanese Law Translation Database System
http://www.japaneselawtranslation.go.jp/law/detail/?id=3206&vm=04&re=2&new=1

Furthermore, for a foreign company to continue transactions in Japan, it must have a representative in Japan (Companies Act 817-1).

Also note that regardless of it being a foreign company, if it were a foreign company with a head office in Japan or one with the purpose of conducting business in Japan, the foreign company concerned is different from the original foreign company.

Such companies are called pseudo-foreign companies, and it is stipulated that these companies cannot engage in transactions on a continuous basis in Japan (Companies Act 821-1).

Companies Act

(Pseudo-Foreign Company)

Article 821 (1) A Foreign Company that has its head office in Japan or whose main purpose is to conduct business in Japan may not carry out transactions continuously in Japan.

(Omitted below)

business-incorporationA foreign company with a head office in Japan is one whose location for business operations is situated in Japan.

In addition, a foreign company with the main purpose of conducting business in Japan is one established on the premise that doing business in Japan is essential to the company’s existence and is thus established to do so.