Business-Friendly Government Policies

The Japanese Government is Preparing a New Stage for Business

Having set a goal of achieving a foreign direct investment stock of 100 trillion yen by 2030, Japan offers a highly attractive business destination and is pulling out all the stops to further improve the environment. The rapidly growing investment environment features robust infrastructure, streamlined procedures, tax incentives, and research and development in cutting-edge fields.

The Japanese government is fully supporting foreign companies to enter Japan through progressive policies that foster global business growth.

Source: Cabinet Office "The Action Plan for Attracting Human and Financial Resources from Overseas (Summary)"

Japan as an Open International Financial Center

In 2022, Japan set forth its vision for becoming an open international financial centerExternal site: a new window will open and has since implemented various initiatives to achieve this goal.

As part of this strategy, Japan established the Financial Market Entry OfficeExternal site: a new window will open, a one-stop center offering English-language support dedicated to helping financial institutions establish operations in Japan. Tax reforms and regulatory adjustments have also been made, reducing costs and providing economic benefits for businesses.

Japan is proactively working to enhance its business environment and strengthen its positions as a global financial hub. This can only be good news for your business.

Source: Financial Services Agency "Japan as an International Financial Center"

Regional Support for Foreign-capital Companies Could Accelerate Your Business

All over Japan, there are National Strategic Special Zones offering support for international entrepreneurs. This means you can choose the city that best suits your business needs, expanding your horizons beyond Tokyo. These Zones offer various forms of assistance, including fast-tracked visa processes and specialized advice designed to smooth your path to starting up your business in Japan.

  1. (1)

    Promotion of the acceptance of diverse foreign entrepreneurs and other talents

    Tokyo*, Kanagawa Prefecture, Narita City, Kyoto Prefecture, Hyogo Prefecture, Niigata City, Fukuoka City*, Kitakyushu City, Sendai City, Aichi Prefecture, Hiroshima Prefecture, Imabari City, Tsukuba City, Osaka Prefecture / Osaka City (Super City), Kaga City.

  2. (2)

    Relaxation of office space requirements for foreign entrepreneurs

    Tokyo, Kyoto Prefecture, Hyogo Prefecture, Fukuoka City*, Kitakyushu City, Sendai City*, Aichi Prefecture, Tsukuba City, Kaga City.

  3. (3)

    Establishment of one-stop centers for various applications to promote entrepreneurship and business startups, including for foreigners

    Tokyo*, Fukuoka City, Kitakyushu City, Okinawa Prefecture, Sendai City, Aichi Prefecture, Tsukuba City, Kaga City.

  1. *

    Pioneer municipality

Special Zones Offering Support for International Entrepreneurs
Source: Created by JETRO based on the website of the Cabinet Office, Regional Revitalization Promotion Office

Japan’s Unique Regulatory and Tax Incentives Accelerate New Technologies and Business Models

Japan is a fertile ground for those looking to create new technologies and business models, thanks to regulatory and tax systems designed to accelerate innovation.

Japan’s Regulatory Sandbox System allows you to conduct proof-of-concept tests for new technologies and business models without being subject to existing regulations. Depending on the results of these trials, the government may further revise policies or regulations, making it easier to implement the business in society. Furthermore, Japan will soon introduce the Innovation Box Tax System, offering tax benefits for acquiring patents and intellectual property licenses related to R&D.

Leverage these systems to reduce risks while accelerating your business.

Sources: Cabinet Office "Regulatory Sandbox," and Ministry of Economy, Trade, and Industry "Outline of the Innovation Box Taxation System"

National Government Incentives

Japan offers a range of government support and incentives designed to boost your business. Take advantage of these opportunities to accelerate your success in Japan, in alignment with supportive government policies.

Setting Up Business

We provide a flowchart outlining the basic steps involved in establishing a base in Japan. You can also find a detailed explanation of each step, cost estimation, an overview of the laws, regulations and procedures related to setting up business, and more.

The pamphlet “Laws & Regulations” is available in PDF, and outlines basic information about laws, regulations and procedures related to setting up a business in Japan.

PDF “Reasons to Choose Japan”

The “Reasons to Choose Japan” is also available in PDF.

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