1. What role does the government of Japan play in approving and regulating foreign direct investment?

Generally speaking, foreigners can conduct business in Japan on an equal legal footing with Japanese citizens. The government of Japan is keenly interested in promoting and expediting foreign direct investment in Japan. To enhance the process, relevant Japanese laws and regulations as well as other related information have been translated into English and are available online at: http://www.invest-japan.go.jp/en_index.html and www.japaneselawtranslation.go.jp/?re=02.

The government offers various incentives and subsidies to promote investment in Japan. Among these are incentives provided under the Act for Promotion of Japan as an Asian Business Center which reduce corporate taxes and patent fees for certain government-certified global enterprises. In addition, companies planning to do business in areas affected by the Great East Japan Earthquake can benefit from less stringent regulations and a reduced tax burden.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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