What is specific to Japanese companies
Most Japanese groups use a subsidiary so that dividends can use Japan's 95% foreign dividend exemption. A liaison office suits an early representative presence but cannot earn income.
How the Japanese side affects the choice
Japan exempts 95% of dividends from a 25% holding kept for six months, so the 10% Indian tax is largely a final cost.
Our services
How SU and Company helps
We compare the options against the Japanese parent's plans and give a written recommendation before any filing.
- Activity and FDI route check
- Tax comparison of subsidiary and branch
- Eligibility check for branch or liaison office approval
- Joint venture shareholding and FEMA pricing points
Questions
Is a branch office a good option for a Japanese company?
Only for a narrow, approved activity. A branch is taxed at the foreign company rate and exposes the parent directly, so most groups prefer a subsidiary.
General information as at 5 November 2026, not advice for a particular case. Indian and Japanese rules change often; confirm the current position before acting. Japanese law points should be confirmed with a Japanese adviser.