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Japan's Proposed Deregulation
It has recently been reported that the Japan Ministry of Justice has decided to revise its Practicing Attorney Law to allow a foreign law firm to conduct its law practice in Japan through a Legal Professional Corporation (“LPC”). These revisions may be submitted to the Extraordinary Diet session this autumn for introduction in 2012.
Effective April 1, 2002, Japanese law firms were permitted to practice through an LPC. However, most medium- and large-sized Japanese law firms located in Tokyo have not opted to use an LPC, and instead have remained Partnerships (“Nin-i-Kumiai”). In many of these cases, tax considerations have been, and continue to be, a significant aspect in this decision-making process.
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