Corporate Counsel

Foreign-owned companies doing business in Japan often face legal challenges arising from legal systems and business practices that differ significantly from those in their home countries.

For example, while the term “company” is used broadly, Japan recognizes four distinct corporate forms: Kabushiki Kaisha, Goudou Kaisha, Gomei Kaisha, and Goushi Kaisha, each with different legal characteristics. In employment matters, at-will employment, which is common in the United States, is generally not recognized in Japan, where employees are strongly protected by law. As a result, termination decisions, non-renewal of contracts, harassment issues, and deficiencies in employment agreements or work rules frequently lead to disputes. In addition, foreign nationals residing overseas who acquire real estate in Japan may be subject to reporting obligations to the government under the Foreign Exchange and Foreign Trade Act. Without professional support, new business initiatives face significant risk when addressing industry-specific licensing and regulatory requirements.

In this way, there are countless legal issues that foreign companies must consider when doing business or living in Japan, and such issues tend to arise more frequently for companies unfamiliar with Japan’s legal system and business practices.

In such cases, a legal retainer enables companies to secure ongoing legal services and address legal issues proactively. It enables efficient contract review, prevention of contractual and employment-related disputes, legal risk assessments when launching new business, and swift initial responses to disputes to mitigate potential damage. This allows management to focus on core business operations while maintaining a stable legal foundation.

In recent years, expectations regarding compliance and corporate governance have increased significantly in Japan. Beyond basic checks against anti-social forces, companies are now expected to assess the overall compliance and governance structures of their business partners. ESG management principles have now become increasingly influential in Japan. Maintaining a robust compliance framework has become an essential condition for business continuity.

Maintaining a legal retainer helps companies demonstrate their commitment to compliance and sound governance, and serves as a highly effective means of building credibility with business partners and financial institutions. As your outside general counsel, our firm serves as a long-term partner, strengthening governance, credibility, and sustainable growth.

We offer three general counsel service plans and are also happy to tailor our services to meet your specific needs. Please feel free to contact us for further information.