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Doing business


Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Legal business entities

Types of companies and capital (max/min) Number of partners/shareholders and liability Maximum and/or minimum capital Liabilities Registration fees
Kabushiki Kaisha (KK), Public limited company. No minimum since the reform of the Commercial Code . Minimum 10 million Yen Limited to the amount of capital contributed 0,7% of the capital with a minimum of YEN 150,000.
Yugen Kaisha , Limited liability company 50 shareholders maximum Minimum 3 Million Yen Limited to the amount of capital contributed YEN 60,000
Goshi Kaisha, Limited partnership No minimum
2 types of partners: active partners and sleeping partners.
No minimum capital Unlimited for the active partners
Limited to the amount of capital contributed for the sleeping partners .
YEN 60,000
Gomei Kaisha, General partnership. 2 partners minimum No minimum capital . Unlimited YEN 60,000

Business setup procedures
The administrative formalities depend on the structure created (branch office, subsidiary company or limited liability partnership). Click here to find the appropriate procedures to follow.
The competent organization
The administrative formalities must be carried out at the bureau of legal affairs of the Ministry of Justice.

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FDI in figures

Foreign Direct Investment 200720082009
FDI of inward flow (millions USD) 22549.552456816824425.545912789411938.6427929435
FDI inward stock (millions USD) 132850.877192982203371.900826446200141.212252878
Performance Index*, ranking on 141 economies 134/141129/141135/141
Potential Index**, ranking on 141 economies 27/14125/141-
Number of Greenfield investments*** 179200161
FDI inwards (in % of GFCF****) 2.245749416213412.143953856501333.98149881229503
FDI stock (in % of GDP) 3.034549591632544.161508505825263.94887366558179

πηγή:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk.*** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

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Why you should choose to invest Japan

Strong points
Japan is the world's second economic power. The purchasing power is one of the highest in the world. Technology is modern and innovative. Substantial means are devoted to education and R&D. Accessing the Japanese market gives access to the rest of Asia. The business climate is favorable. The population is ageing, which opens up a new development potential to meet the needs of the older age groups.
Click here for further arguments in favor of investing in Japan.
Weak points
Over-regulation in Japan continues to restrain economic growth, raise the cost of doing business, restrict competition, slow down the market entry and exit, and slow down investment.
Government measures to motivate or restrict FDI
The government still imposes some restrictions on the penetration of the Japanese economy by foreign investors. Nevertheless, Japan’s Company Law has been re-examined in 2009, which simplified and made access to the national market easier for foreign investors.
Click here for further information about this reform.
Bilateral investment conventions signed by Japan
Japan is a signatory to 12 conventions.
UNCTAD allows you to visualize the list of conventions signed by Japan, and to download these conventions.

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Procedures relative to foreign investment

Freedom of establishment
Guaranteed.
Acquisition of holdings
Possible.
Obligation to declare
The different obligatory declarations in Japan are :
- when a company with a capital of more than 2 billion Yen acquires 10%, 25%, or 50 % of a Japanese company.
- when a company with more than 10 billion Yen acquires business from another company with more than a billion Yen turnover.
Competent organization for the declaration
Ministry of Finance
Japan Fair Trade Commission (JFTC)
Requests for specific authorizations
Investment of foreign capital in the fields of agriculture, forestry, fishing, mines, oil, leather and the industries of the transformation of leather, and telecommunications is examined first by the Japanese government.
Any investment in the banking sector, insurance, security, and pharmaceutical products is subject to license.

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Finding assistance for further information

Investment aid agency
Japan External Trade Organization, JETRO
Invest Japan Business Support Centers (IBSC)
Kansai Council of Investment Promotion
Japan Invest Council
Entry Point Tokyo Business
Other useful resources
Venture Japan

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