Investing in Japan
Investment News
- Jul. 18, 2007
- Reports on the Japan Business Strategy Forum 2007 held in Seoul, Korea on June 15th
- Jul. 11, 2007
- Social Security Agreement with France Enters into Force on June 1, 2007
- Jun. 18, 2007
- Chinese Software Firms Continue to Eye Japan as Investment Destination
- May 9, 2007
- Chiba Prefecture Office Rent Subsidies for Foreign-Affiliated Companies
- Apr. 27, 2007
- Greater Flexibility in Consideration for Mergers widens the selection tools available to foreign firms as they expand business in Japan
- Jan. 23, 2007
- Social Security Agreement with Belgium Implemented in January 1, 2007
June. 11, 2007
Social Security Agreement with France Enters into Force on June 1, 2007
Obligation to enroll in the Japanese pension and medical insurance system applied to regular employees dispatched from France will be exempted due to the implementation of the Social Security Agreement between Japan and France from June 2007. It is expected that this agreement will further promote human and economic exchanges between France and Japan.
The Social Security Agreement prevents a dual insurance liability for pension purposes to ensure that a person is not liable to pay social security contributions to two countries' schemes at the same time.
Status of agreements with Other Countries as of July 1, 2007 is as follows:
| Country | Signed | Implemented |
|---|---|---|
| Germany | Apr-98 | Feb-00 |
| United Kingdom | Feb-00 | Feb-01 |
| Korea | Feb-04 | Apr-05 |
| United States | Feb-04 | Oct-05 |
| Belgium | Feb-05 | Jan-07 |
| France | Feb-05 | Jun-07 |
| Canada | Feb-06 | Under preparation |
| Australia | Feb-07 | Under preparation |
| Netherlands | Under negotiation |
June. 18, 2007
Chinese Software Firms Continue to Eye Japan as Investment Destination
In the past four years, more than 50 Chinese firms have utilized JETRO to set-up business in Japan, with the software industry accounting for 30% of these new entrants. The trend looks set to continue in FY2007, with two Chinese firms establishing business in Kanagawa prefecture this past April.
One of the new entrants, Beida Jade Bird Group, is one of Peking University's largest enterprise groups, with five listed companies and over 7,000 employees. The group, which deals in software system development and other areas such as electronics, communications and education, opened its Japan office, Beida Jade Bird System (Japan) Co.,Ltd, in the Kanagawa Science Park with the support of JETRO and the Kanagawa prefectural and Kawasaki city governments.
The other new entrant, Dalian Huayang Digital Technology Co. Ltd., a solutions system provider based in Dalian, opened a branch office in Atsugi city with the support of JETRO and the Kanagawa prefectural government.
Both firms made use of the JETRO Invest Japan Business Support Center (IBSC) Kanagawa to set-up their business, receiving advice and information on matters ranging from legal and tax to labor affairs.
- For more information about the JETRO IBSC
- For other Success Stories
May 9, 2007
Chiba Prefecture Office Rent Subsidies for Foreign-Affiliated Companies
Chiba prefecture launched a subsidy program in FY2007 to promote relocations from outside the prefecture by foreign-affiliated companies that are already established in Japan or entering the Japanese market from abroad for the first time. The program subsidizes one-third of office rent for a one-year period for companies leasing offices and other facilities in Chiba prefecture.
he major feature of the program is that companies receive the subsidy as a lump sum amount, after the prefecture has approved their application.
<Qualifications/Requirements>
Companies must fit one of the following cases:
- Foreign-affiliated company that is transferring its head offices and/or other central operations from another prefecture to Chiba prefecture.
- Foreign-affiliated company that is entering Chiba prefecture from abroad for the first time.
- Foreign-affiliated company that is leaving the ForeignAffiliatesStart-upCenter (FASuC) in order to locate their operations in Chiba prefecture.
In addition, companies must also satisfy the following conditions:
- Must contribute to the advancement of Chiba prefecture's "Promotion Strategy for New Industries" (Cluster Plan), as approved by the Chiba prefecture governor.
- Must sign a minimum one-year lease agreement for offices or other facilities in Chiba prefecture and have plans to do business in the prefecture for at least three years.
<Qualifying Facilities>
Qualifying facilities include offices and plants and also facilities engaged in research in natural science and other fields. Commercial facilities such as retail stores, as well as warehouses, incubation facilities and offices that mainly provide services are excluded.
<Expenses and Subsidy Amounts>
One-third of the annual rent for offices or other facilities or two million yen, whichever amount is lower.
<Applying for the Subsidy>
Companies must consult with the Chiba Investment Support Center and the prefectural government prior to finalizing the lease agreement. (Subsidy applications made after finalizing the lease agreement will not be accepted.)
- Inquiries
- Chiba Investment Support Center
TEL: 043-299-2910 FAX: 043-299-3411
Investment Promotion Division, Commerce, Industry and Labor Department, Chiba Prefectural Government
TEL: 043-223-2766 FAX: 043-222-4092
June. 18, 2007
Chinese Software Firms Continue to Eye Japan as Investment Destination
In the past four years, more than 50 Chinese firms have utilized JETRO to set-up business in Japan, with the software industry accounting for 30% of these new entrants. The trend looks set to continue in FY2007, with two Chinese firms establishing business in Kanagawa prefecture this past April.
One of the new entrants, Beida Jade Bird Group, is one of Peking University's largest enterprise groups, with five listed companies and over 7,000 employees. The group, which deals in software system development and other areas such as electronics, communications and education, opened its Japan office, Beida Jade Bird System (Japan) Co.,Ltd, in the Kanagawa Science Park with the support of JETRO and the Kanagawa prefectural and Kawasaki city governments.
The other new entrant, Dalian Huayang Digital Technology Co. Ltd., a solutions system provider based in Dalian, opened a branch office in Atsugi city with the support of JETRO and the Kanagawa prefectural government.
Both firms made use of the JETRO Invest Japan Business Support Center (IBSC) Kanagawa to set-up their business, receiving advice and information on matters ranging from legal and tax to labor affairs.
- For more information about the JETRO IBSC
- For other Success Stories
May 9, 2007
Chiba Prefecture Office Rent Subsidies for Foreign-Affiliated Companies
Chiba prefecture launched a subsidy program in FY2007 to promote relocations from outside the prefecture by foreign-affiliated companies that are already established in Japan or entering the Japanese market from abroad for the first time. The program subsidizes one-third of office rent for a one-year period for companies leasing offices and other facilities in Chiba prefecture.
The major feature of the program is that companies receive the subsidy as a lump sum amount, after the prefecture has approved their application.
<Qualifications/Requirements>
Companies must fit one of the following cases:
- Foreign-affiliated company that is transferring its head offices and/or other central operations from another prefecture to Chiba prefecture.
- Foreign-affiliated company that is entering Chiba prefecture from abroad for the first time.
- Foreign-affiliated company that is leaving the ForeignAffiliatesStart-upCenter (FASuC) in order to locate their operations in Chiba prefecture.
In addition, companies must also satisfy the following conditions:
- Must contribute to the advancement of Chiba prefecture's "Promotion Strategy for New Industries" (Cluster Plan), as approved by the Chiba prefecture governor.
- Must sign a minimum one-year lease agreement for offices or other facilities in Chiba prefecture and have plans to do business in the prefecture for at least three years.
<Qualifying Facilities>
Qualifying facilities include offices and plants and also facilities engaged in research in natural science and other fields. Commercial facilities such as retail stores, as well as warehouses, incubation facilities and offices that mainly provide services are excluded.
<Expenses and Subsidy Amounts>
One-third of the annual rent for offices or other facilities or two million yen, whichever amount is lower.
<Applying for the Subsidy>
Companies must consult with the Chiba Investment Support Center and the prefectural government prior to finalizing the lease agreement. (Subsidy applications made after finalizing the lease agreement will not be accepted.)
- Inquiries
- Chiba Investment Support Center
TEL: 043-299-2910 FAX: 043-299-3411
Investment Promotion Division, Commerce, Industry and Labor Department, Chiba Prefectural Government
TEL: 043-223-2766 FAX: 043-222-4092
Apr. 27, 2007
Greater Flexibility in Consideration for Mergers widens the selection tools available to foreign firms as they expand business in Japan
The new provision of the Corporate Law will go into effect in May 2007. This will allow foreign investors to use not only cash, but also their own shares as consideration for cross-border mergers (a triangular merger). It is expected to expand the range of options in the corporate reorganization between overseas and Japanese companies.
In reference to a triangular merger, the following provision will be made to the Ordinance for Enforcement of the Corporate Law and the Corporate Tax Law, at the same time of the implementation of the flexible merger consideration system.
- The parent foreign company is required to provide (in Japanese) the necessary information for adequate understanding of the company, evaluation of the value of their shares, the realization of the capital gains, and other issues affecting the interest of shareholders of the disappearing company.
- Tax deferral treatment will be applied in a triangular merger, making it a proviso that business relatedness can be found between the parties involved in the merger. This receives equal treatment with the case of qualified mergers among domestic companies, where business relatedness has been required as well.
A requirement of business relatedness for qualified mergers will be specified in the article, which requires the parties to have a real business presence in Japan, including the existence of the facilities (offices, stores, factories, etc.), hiring employees, and other business activities such as sales, production, development, advertising, and market research, etc.
(based on public information available as of April 2007)
Jan. 23, 2007
Social Security Agreement with Belgium Implemented in January 1, 2007
Obligation to enroll in the Japanese pension and medical insurance system applied to regular employees dispatched from Belgium will be exempted due to the implementation of the Social Security Agreement between Japan and Belgium from January 1, 2007. It is expected that this agreement will further promote human and economic exchanges between Belgium and Japan.
The Social Security Agreement prevents a dual insurance liability for pension purposes to ensure that a person is not liable to pay social security contributions to two countries' schemes at the same time.
Status of agreements with Other Countries as of January 1, 2007 is as follows:
| Country | Signed | Implemented |
|---|---|---|
| Germany | April 1998 | February 2000 |
| United Kingdom | February 2000 | February 2001 |
| Korea | February 2004 | April 2005 |
| United States | February 2004 | October 2005 |
| Belgium | February 2005 | January 2007 |
| France | February 2005 | Under preparation |
| Canada | February 2006 | Under preparation |
| Australia | Under negotiation | |
| Netherlands | Under negotiation |
