In response to Japan's new law requiring overseas companies to set up headquarters in the country, technology companies including Microsoft and Google have registered and established overseas headquarters in Japan, rather than operating solely as overseas branches.
Currently, a total of 31 technology companies have complied with this requirement, and technology companies such as Microsoft, Google, Meta, and Twitter have submitted registration applications to establish overseas headquarters in Japan. The Japanese Ministry of Justice stated that 13 overseas companies have recently applied for registration before the deadline, and 6 companies have completed the registration process earlier, including Microsoft and Google.
However, four companies have informed the Ministry of Internal Affairs and Communications of their decision to cease operations in Japan, thereby avoiding the requirement to establish an overseas headquarters in Japan. The remaining 4 companies have yet to submit their registration applications, and the Ministry of Justice has announced that it will impose fines of up to 14 million yen (approximately NT$17) on the 100 companies listed as requiring overseas headquarters in Japan.
Similar regulations have been in place in China in the past, requiring overseas businesses operating within the country to set up local companies or to establish joint ventures with local businesses. The main considerations were to maintain domestic market development, as well as related taxation, management and other matters, while also achieving the purpose of protecting the rights of domestic consumers.
