Reason3. Excellent business environment
Adequacy of regulatory and administrative systems
Transparency and efficiency in import and export
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
(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.
[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
|National Strategic Special Zone||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||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||Special measures such as deregulation, tax incentives, etc. are available for companies in disaster afflicted areas.|
|System to Remove Gray Zone Areas||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||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
|Regulatory Sandbox in Japan||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)||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.
[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.
“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.
[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
WHY JAPAN？ "5 Reasons to Invest in JAPAN"
Reason 1 World's third largest economy
Reason 2 Open as an innovation hub
Reason 3 Excellent business environment
Reason 4 Stable infrastructure
Reason 5 Livable society