A U.S. SaaS company sought to enter the Japanese market by establishing a wholly owned subsidiary. The client needed a swift setup process and early-stage alignment with Japan’s accounting and tax requirements.
The Challenge
The Japanese subsidiary’s monthly closing had to be synchronized with U.S. head office reporting from the beginning. This required the rapid implementation of a local accounting and tax framework. Multiple procedures—such as filing notifications with tax and social insurance offices, determining executive compensation, and designing a transfer pricing policy—had to be executed in parallel.
Moreover, there was a significant gap between Japanese and U.S. tax regulations, requiring clear documentation and internal explanation for the U.S. team. Finally, because the client operated remotely, dealing with Japan’s analog administrative processes became an additional burden. A comprehensive and bilingual support system was essential.
What did epic do:
Epic coordinated all required tax and labor filings at the time of the subsidiary’s incorporation. We designed a chart of accounts and bookkeeping rules to ensure compatibility with both J-GAAP and US-GAAP, and implemented a monthly closing process aligned with U.S. reporting requirements.
We developed English-language reporting templates and supported quarterly consolidation. A basic transfer pricing policy was created in line with group standards. We also managed local tax treatments such as consumption tax election, withholding tax, and deductible expense classifications. To bridge the knowledge gap, Epic provided detailed bilingual materials for internal use at the U.S. headquarters.
The Results
- Tax and accounting systems set up within one month of incorporation
- Monthly and quarterly reports delivered in English to HQ
- Fully aligned with the global consolidation schedule
- All tax filings submitted on time
- Reduced Japan-side administrative burden by over 80%
