By Terrie Lloyd

What type of company is best when starting up in Japan and how much capital should it have?

Probably the two most common questions asked by foreign CEOs wanting to establish a presence in Japan are what type of corporate structure they should use and what the capitalization should be.

By Terrie Lloyd

Founding an office in Japan and hiring a local CEO is not only expensive, but fraught with risk. We take a look at an economical yet safer option.

By Terrie Lloyd -- Communication with a Japanese distributor is vital to getting the most out of your business. Your company has hired the consultants, done the trade show, and has subsequently found a distributor with whom to start doing business in Japan. For some, this is the end of the story in terms of their direct involvement in Japan, and they are happy to take a smaller cut of the sales and leave the distributor to execute every aspect of the Japan operation. In a company that sells intellectual property versus products, this type of relationship is common, and handing the work of market development to your Japanese partner will mean that you can typically expect to receive just 25 percent or so of the revenues. If you’re selling products, then you might receive 40 percent to 50 percent.