Japan flag Japan: Investing in Japan

Investment framework and opportunities in Japan

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 meets these thresholds (Competition Law):
    • Joint share company: one company contribution exceeds JPY 20 billion and the other JPY 5 billion,
    • Joint corporation-type company split: companies contributions exceed JPY 10 and 3 billion,
    • Share acquisition: capital issued exceeds JPY 5 billion and acquiring company capital exceeds JPY 20 billion,
    • Merger: company capital exceed JPY 20 and 5 billion,
    • Acquisitions of business: transferring company capital exceeds JPY 3 billion and acquiring company capital JPY 20 billion,
  • when a company exceed 1 % of equity participation, regardless the amount of investment (Foreign Exchange and Foreign Trade Law).
Competent Organisation For the Declaration
Ministry of Finance
Japan Fair Trade Commission (JFTC)
Requests For Specific Authorisations
The Japanese government has imposed relatively few restrictions on inward foreign investment. However, with regard to sensitive sectors of the Japanese economy, six months' prior notification is required and the Ministry of Finance may restrict FDI if it considers that investments "undermine national security, disrupt public order, impinge on public safety or have serious effects on the smooth operation of the national economy":

  • Defence.
  • Broadcasting and telecommunications.
  • Agriculture, forestry and fisheries.
  • Petroleum, utilities and nuclear energy.
  • Aviation, aerospace and maritime transport.
  • Leather making.

Any investment in the banking, insurance, energy, electricity, security and pharmaceutical sectors is subject to license.
On 22 November 2019, the Japanese parliament adopted a bill revising the Foreign Exchange and Foreign Trade Act. The revised law requires foreign investors to request prior notification to the government before obtaining a 1% or more stake in a listed Japanese company engaged in activities related to arms, nuclear energy, semiconductors, railways and other areas, lowering the threshold from the current 10%. The amended law came into force on 7 May 2020.

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Investment Opportunities

Investment Aid Agency
Japan External Trade Organisation, JETRO
Invest Japan Business Support Centres (IBSC)
Kansai Bureau of Economy,Trade and Industry
Japan Investment Council
Tenders, Projects and Public Procurement
JETRO - Japan External Trade Organisation, Tenders
Asian Development Bank, Procurement Plans in Asia
Tenders Info, Tenders in Japan
dgMarket, Tenders Worldwide
Other Useful Resources
Venture Japan

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Latest Update: November 2022

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