Questions & Answers
Is local representation required?
Whether local representation is required depends on your sales model and product type; general cross-border e-commerce typically does not require a local entity, but regulated goods, physical imports, or marketplaces like Amazon FBA mandate a local importer, domestic administrator, or customs representative.
When You Do Not Need Local Representation:
- Direct-to-consumer (DTC) online sales: Running your own website (such as via Shopify) and shipping individual parcels directly to buyers via international mail usually does not require a local Japanese company structure.
- Market research and advertising: Setting up a non-transactional Japan Representative Office requires no formal legal registration if you do not issue local sales or profit-generating contracts.
When Local Representation Is Required:
- Regulated and safety-controlled goods: Products like electronics (PSE law), electrical appliances, cosmetics, and medical devices require a local Domestic Administrator or responsible marketing entity to handle safety compliance and filings with bodies like METI.
- Customs and warehousing (e.g., Amazon FBA): If you ship inventory in bulk to a local warehouse or Amazon FBA, a foreign company cannot act as the Importer of Record without a local address. You must appoint a local importer or an Attorney for Customs Procedures (ACP).
- B2B sales and tax invoicing: To issue invoices compliant with Japan’s Qualified Invoice System (JCT) for local corporate clients, you need a local tax representative.
