FDI in figures

Despite the increase in FDI since the mid-1990s, Japan continues to have the smallest flow of foreign investments. According to the UNCTAD report on world investment, Japan's potential appeal for foreign investment is very strong compared with the other countries of the world, but its performance in terms FDI received is poor. Indeed, of the 141 countries studied, Japan is ranked as the 22^nd country in the world in terms of FDI appeal potential, but falls to 131^st place. The country receives less FDI since 2008, mainly because of the worsening conditions for companies to acquire loans.

Why you should choose to invest in Japan

Strong points

Japan is the second world economic power. Purchasing power is one of the highest of the world. Technologies are modern and innovative. Substantial means are devoted to education and R&D. Access to the Japanese market is an opening towards the rest of Asia. The business climate is favorable. The population is ageing, which opens up 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, impede market entry and exit, and impede 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.

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.

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