Global Business Report 2022

Running head: GLOBAL BUSINESS
GLOBAL BUSINESS
Name of Student
Name of University
Author’s Note

GLOBAL BUSINESS1
Table of Content

GLOBAL BUSINESS2
Japan
Advantages in Japan
In accordance with the Japanese legislation a foreign company can open a subsidiary
company. This subsidiary company will be seen as an independent entity but the shares will be
fully owned its shares. The Japanese legislation also provides the liability for any shareholders
be it individual or local or foreign entity can be the shareholder of the subsidiary company of the
foreign company. Japanese laws and regulations which are present in the legislation states the
issue the power of acting individuality for the subsidiary company. This means that the
subsidiary company can conduct the different activities than parent company (Peltokorpi and
Vaara 2017). The subsidiary company in Japan is treated as the tax resident. The subsidiary
companies can get advantage from the network of the double tax treaties. The subsidiaries of the
foreign companies are allowed to have non-resident directors. The Labor Standards Act of Japan
states the flexibility of labors, working hours and also the perquisites which are associated with
the companies. This is the integral part which helped the subsidiaries of the company.
Disadvantages in Japan
There are some of the disadvantages of opening the subsidiary companies in Japan. When
a company wants to open the subsidiary companies, the companies need to establish as the Joint
Stock Company, Limited Liability Company and similar entity in accordance with the
Companies Act of Japan. In accordance with Japanese legislation the subsidiary companies are
liable to pay their taxes. This advantage has an ill affect. The taxation system of the foreign
business will be differing from Japan taxation system and hence the company has to face serious
repercussion (Drifte and Jaussaud 2016). This will also include the problem of the cultural
challenges. Japan provides a great array of skills and knowledge which will enhances the