Reason3. Excellent business environment

Reason3. Excellent business e nvironment

Adequacy of regulatory and administrative systems

World

No. 2

Transparency and efficiency in import and export

World

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 241, New York 227, Hong Kong 164, London 118, Nagoya 111, Singapore 110, Tokyo 100, Paris 97, San Francisco 88, Osaka 74, Seoul 73, Shanghai 54, Yokohama 54, Kobe 34.
  1. (NOTE) For Tokyo, the rent in Minato Ward is used. For San Francisco, the average rent in the city is used. And for other cities with variance in rents, the mid-point value (of the highest and lowest) is used.

    [Source] Comparison of investment costs (JETRO).


Foreign affiliated companies operating in each region
(2808 companies that responded to the survey)

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 34, Kanto 2324, Chubu 114, Kansai 263, Chugoku/Shikoku 27, Kyushu/Okinawa 46.
  1. [N.B.] The number of foreign affiliates by region and prefecture responding to the following survey (n=2808). 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 FY2019)" (METI)

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.

“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 ”Startup Preparation Activity Plan” to local governments. Municipalities: Thirteen municipalities (as of September 2021): Fukuoka City, Aichi Prefecture, Gifu Prefecture, Kobe City, Osaka City, Mie Prefecture, Hokkaido, Sendai City, Yokohama City, Ibaraki Prefecture, Oita Prefecture, and Kyoto Prefecture, Shibuya City, whose ”Plans for Managing and Supporting Business Startup Activities by Foreign Entrepreneurs” have been certified by the Minister of Economy, Trade and Industry, will review the prospects of obtaining ”Business manager ” status of residence. Start providing support for companies (provision of one-stop consultation desks, co-working spaces, etc.). Immigration Bureau grants Status of Residence of ”Designated Activities” for six months plus another six months. Foreign entrepreneurs can spend up to one year establishing a startup, such as preparations for acquiring a ”Business manager” status of residence and the share capital to establish offices. The entrepreneur can start a company after obtaining a ”Business manager” status of residence.
  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

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