Reason3. Excellent business environment

Reason3. Excellent business e nvironment

Adequacy of regulatory and administrative systems


No. 2

Transparency and efficiency in import and export


No. 3

  1. The Global Competitiveness Report 2019 (World Economic Forum)

Office rent in Tokyo is about one-third of Beijing

Office rent in Nagoya and Yokohama is cheaper than that of Shanghai.

Comparison of office rents in each cities when the cost in Tokyo is 100

Comparison of office rents in each city with Tokyo expenses as 100: Beijing 288, New York 219, Hong Kong 195, London 187, San Francisco 131, Singapore 127, Paris 105, Tokyo 100, Seoul 87, Osaka 78, Shanghai 65, Nagoya 65, Yokohama 58.
  1. (NOTE)For a city with variance in rents the mid-point value (of the highest and lowest) is used.

    [Source]Source]: Comparison of investment costs (JETRO).

Foreign affiliated companies operating in each region

Based on the business opportunities and the business environment, many overseas companies are expanding their business in areas beside Tokyo.

Number of foreign affiliates operating in each region. Hokkaido/Tohoku 36, Kanto 2717, Chubu 173, Kansai 289, Chugoku/Shikoku 30, Kyushu/Okinawa 47.
  1. [N.B.] The number of foreign affiliates by region and prefecture responding to the following survey n=3287). It does not cover all foreign affiliates with bases in Japan.

    [Source] Survey of Trends in Business Activities of Foreign Affiliates (conducted in connection with business for FY2018)" (METI)

Well-developed incentive system

The Japanese government is actively creating various systems to improve the business environment.

Incentives related to Special Zones

Name Outline
National Strategic Special Zone外部サイトへ、新しいウィンドウで開きます Special regulatory measures, tax treatment (for corporate income tax), and financial/monetary support are available for companies in National Strategic Special Zones.
Comprehensive Special Zones外部サイトへ、新しいウィンドウで開きます Special regulatory measures, tax treatment (for corporate income tax), and financial/monetary support are available for companies in designated zones. CSZs have two types: those for international competitiveness and those for local revitalization. CSZs aim at providing tailored, integrated support for comprehensive and strategic challenges in selected regions.
Special Zones for Reconstruction外部サイトへ、新しいウィンドウで開きます Special measures such as deregulation, tax incentives, etc. are available for companies in disaster afflicted areas.
Name Outline
System to Remove Gray Zone Areas外部サイトへ、新しいウィンドウで開きます A system to enable businesses to check in advance the application of regulations in line with their business plans and conduct new business activities with peace of mind even when the current regulations' scope is unclear.
System of Special Arrangements for Corporate Field Tests外部サイトへ、新しいウィンドウで開きます A system that applies special regulatory measures on an individual company basis, subject to securing safety, etc in response to proposals for special regulatory measures by companies seeking to engage in new business activities.

Incentives based on the Act on Special Measures for Productivity Improvement

Name Outline
Regulatory Sandbox in Japan外部サイトへ、新しいウィンドウで開きます The Regulatory Sandbox framework in Japan enables quick verification and data collection that can lead to regulatory reforms by establishing an environment where new technologies and business models can be demonstrated without adhering to existing regulations under certain conditions, such as by limiting participants or duration.
Connected Industries Tax System(IoT Tax System)外部サイトへ、新しいウィンドウで開きます Tax measures supporting the introduction of systems, sensors, robots necessary for boosting productivity through collaboration and utilization of data with certain cybersecurity measures.

Project-based "Regulatory Sandbox" system

By limiting the number of participants and the period, the participant can demonstrate new technologies and business models without being constrained by existing regulations.

If new technologies such as IoT and blockchain or new businesses such as platformer-type businesses face difficulty in their commercialization due to regulations: JETRO provides liaison and coordination between foreign/foreign-affiliated companies and the one-stop service contact. Consultation with the Cabinet Secretariat's one-stop service desk, and application of a demonstration plan to the minister in charge of regulation. The Japanese government implements regulatory reform based on demonstration data and policy formation through dialogue and demonstration with the market. These special regulatory measures will enable demonstration experiments to be conducted for a limited period with limited participants.
  1. [Source] Prepared from "Regulatory Sandbox System (Project-type Sandbox)" (Regulatory Sandbox Team)

“Japanese Green Card for Highly Skilled Foreign Professionals” system

Foreign professionals who score 70 points or more on the scoring sheet are recognized as “highly skilled foreign professionals” and eligible for preferential immigration treatment.

Before reviewing: 5 years for personnel points of 70 or more. After review: 3 years for 70 points or more, 1 year for 80 points or more. Example of point calculation (for 33-year-old engineers): 10 points aged 34 or younger, annual income of 6 million yen 20 points, 20 graduates of master's degree, 5 points for 3 years of career, 15 inventions of patents, 10 graduates of the top ranking in university ranking, a total of 80 points.
  1. * high-ranked university

    [Source] A system of preferential immigration control based on the point system for advanced personnel外部サイトへ、新しいウィンドウで開きます

“Projects for Encouraging Foreign Entrepreneurs
to Start Business ” (so-called “start-up visa”)

A foreign national starting a business in Japan needs to obtain the status of residence of “Business manager” as a general rule. However, the system enables the applicant to obtain the status of residence without satisfying the requirements. Foreign entrepreneurs supported by local governments will be granted the status of residence of “designated activities" to set up a business for up to one year.

Foreign entrepreneurs: Submit the
  1. [Source] Compiled from"System Outline for Projects for Encouraging Foreign Entrepreneurs to Start Business" (METI)

Reason4. Stable Infrastructure

Efficiency of public transport services

1st in the world

Reason4.Stable Infrastructure

WHY JAPAN? "5 Reasons to Invest in JAPAN"

  1. Reason 1 World's third largest economy

  2. Reason 2 Open as an innovation hub

  3. Reason 3 Excellent business environment

  4. Reason 4 Stable infrastructure

  5. Reason 5 Livable society

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