[Report] Investors Can't Stay Away from Japan - Here's Why
Feb 24, 2016
Japan’s economy continues to attract international investors on an increasing scale. The 2014 year saw foreign direct investment to Japan exceed 20 trillion yen for the first time, with European investments accounting for 10.9 trillion of all FDI (46.8%). The United States ranked first for FDI into Japan by-country, with a total annual investment of 6,6888.1 billion yen.
The research and development industry has also continued to attract major players from around the world. Apple, Nokia, and Johnson & Johnson have all established research and development centers in Japan for the purpose of product development.
A large part of Japan’s success stems from its efforts to deregulate several of its most viable industries, as well as simplify its overall business tax model. Fiscal reform in 2015 saw the standard corporate tax rate lowered from 34.62% to 32.11%, with goals to decrease it further to 29.74% by the end of 2018. Full liberalization of the energy sector is to be complete by April 2016, and full liberalization of the gas retail market is expected by 2017.
Additionally, requirements for business incorporation have been relaxed; foreign companies are no longer need a representative from Japan in order to establish a subsidiary company.
To learn more about what makes investors choose Japan, please download our free Invest Japan Report. The report provides a comprehensive overview of Japan’s current market, as well as the changes that have encouraged continued foreign direct investment by foreign companies.