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ECONOMY > Economic Policy

Establishing subsidiaries in Japan to become easier for foreign corporations

  • January 14, 2017
  • , Nikkei , p. 5
  • JMH Translation

In order to increase direct investment in Japan, the government plans to simplify the administrative procedures that foreign corporations have to undergo when making investments in Japan. Under the new rule, when a foreign company establishes a Japanese subsidiary, the investment capital can be deposited in a foreign branch office of a Japanese bank. It will also become possible to obtain residence eligibility via the internet in order to encourage research and development sections of foreign companies to relocate to Japan.


Up until now, when foreign companies established subsidiaries in Japan, they were required to deposit the capital needed in a Japanese domestic account. Starting this year, the Ministry of Justice will change the rule to include accounts at foreign branches for that purpose. Persons other than the CEO and other management officers can be account holders as long as they have authorization from the person who incorporated the subsidiary. Notification of the revision will be issued by the end of the fiscal year.


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