Investing in Japan

The No-Action Letter system allows companies/individuals to confirm in advance (with relevant ministries and agencies that have jurisdiction to enforce certain laws and regulations) whether specific actions in connection with business activities that the company/individual seeks to realize are subject to the provisions of the regulations concerned. The relevant ministry or agency responds in a public letter.

1. Scope of No-Action Letters
   An individual or entity engaging in a particular activity can request clarification on the following three points with regard to laws and regulations subject to no-action letter procedures:
   • Cases where the provision concerned determines the basis for disposition of an application and the act of violating the provision concerned is subject to penal provisions; or
   • Cases where the provision concerned determines the basis for identifying activities that require the notification of certain matters to administrative agencies and the act of violating the provision concerned is subject to penal provisions; or
   • Cases where the provision concerned determines the basis for unfavorable disposition.
   
   
2. How to submit a No-Action Letter
   Companies or individuals, or their proxy, can submit inquiries by e-mail, fax, regular mail or in person to the appropriate ministry or agency. If the content of a written inquiry is deemed insufficient or the identification of the inquirer is needed, additional information/action may be required.
   
   <Inquiry content>
   • Specific indication of the provisions of laws and regulations, or government orders based on those laws and regulations, with respect to which the inquirer wishes to determine applicability to its prospective action.
   • The inquirer's clearly stated opinion concerning the applicability of the provisions of laws and regulations specified, and the basis for this opinion.
   • A statement from the inquirer agreeing to his/her name, the contents of the inquiry and response thereto being made public.
   
   
3. Answers
   In principal, submissions are answered within 30 days of receipt, at which time record of the decision will be published.
   
   
4. Method of Publication of Inquiries and Responses
   In general, the inquirer's name, contents of the inquiry and the response thereto shall be posted, in their entirety, on the websites of concerned ministries and agencies within 30 days of the issuance of the response. When submitting the request, the inquirer may also request a delay in publication of the inquiry and response.
   
   
5. Ministries and agencies that have adopted the No-Action Letter system
   • Fair Trade Commission
   • Ministry of Internal Affairs and Communications
   • Ministry of Education, Culture, Sports, and Science and Technology
   • National Police Agency
   • Ministry of Justice
   • Ministry of Health, Labor and Welfare
   • Financial Services Agency
   • Ministry of Foreign Affairs
   • Ministry of Agriculture, Forestry and Fisheries
   • Forestry Agency (No English page)
   • Ministry of Economy, Trade and Industry
   • Meteorological Agency
   • Ministry of the Environment
   • Ministry of Finance
   • Ministry of Land, Infrastructure and Transport

* The following Japanese government ministries/agencies outline the No-Action Letter system in detail (only in Japanese) on their websites.