Before the new Corporate Law took effect Monday, one article was viewed with a wary eye by foreign-affiliated firms: No. 821.
Article 821 deems firms to be illegal if they mainly operate in Japan but their head office is a paper company overseas for the purpose of evading laws and taxes here.
Article 821 also stipulates "Foreign firms that have their main office in Japan or whose main purpose is to operate in Japan, cannot continue to operate in Japan."