International investors who incorporate a company in Japan can gain from the Economic Partnership Agreements Japan has signed with Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Australia, Chile, India, Mexico, South Korea and Switzerland. Under the terms of these agreements, Japanese exports are exempt from or enjoy reduced tariffs when imported to these countries, while imports into Japan enjoy reduced tariffs.

Entrepreneurs wishing to incorporate a company in Japan should take into consideration that Japan has almost 700,000 researchers who share a US$130 billion research and development (R&D) budget. It is the world’s 3rd-largest, of which hi-tech industries receive the bulk of the budget.

The Tokyo Stock Exchange (TSE) is the world’s 2nd-largest stock exchange and Japan currently boasts the highest level of individually-held financial wealth in the world, with US$12.5 trillion held by private individuals.  Therefore, international companies who incorporate a company in Japan find a ready pool of funding support when seeking to raise capital.

A company is eligible to list on the TSE if it meets one of the following criteria:

i) Profit in the most recent 2 years were at least a) 100 million Yen in year 1 and b) 400 million yen in year 2;

ii) Profit in the most recent 3 years were at least a) 100 million yen in year 1 b) 400 million in year 3 and c) 600 million in total for the 3 years;

iii) The company reported total market capitalisation of at least 100 billion yen and sales of at least 10 billion yen for the most recent year.

Companies established in an FAZ gain incentives including i) reduced interest loans and ii) exemption from local real estate purchase tax and property tax.

For more detailed information on the corporate finance and incentives available to investors who incorporate a company in Japan, purchase our Asia Business Setup book, contact email@healyconsultants.com or call us in Japan at (+81) 345 801 776.