If a foreign company intends to carry out transactions in Japan on a continuous basis, it is required to register in Japan and appoint a representative in Japan, at least one of whom must be a resident of Japan.

By contrast, if a foreign company engages only in isolated or incidental transactions in Japan, such registration is not required. The registration requirement applies to transactions that are continuous and commercial in nature and conducted pursuant to a certain business plan.

Please note that a foreign company may be deemed to be carrying out transactions in Japan even if it has no office or branch in Japan, for example, where it sells products or services online targeting customers in Japan.

A registered foreign company may sue or be sued in Japan and is directly responsible for its transactions conducted in Japan.

If a foreign company intends to terminate its business activities in Japan, it is required to give public notice to its creditors for a period of one month. If a creditor files a claim during this period, the foreign company must satisfy such claim unless it lacks legal grounds. After completion of this process, the resignation of the Japanese representative becomes effective and the company’s registration in Japan is closed.