NewsCase StudiesEvents

Japan: Regulatory changes and business opportunity in 2016

Also in the news...

Registration of Title to Land at Abuja Geographic Information System, Nigeria

The Federal Capital Territory (FCT) Abuja, Nigeria’s capital is gradually becoming a renowned city in Africa. In recent times, there has been an influx of people into the city and its real estate development and construction sectors are developing at a tremendous pace.

FREE VISA FOR LIFE WITH COMPANY SETUP STARTING AT AED 14,500

Looking to set up your UAE company? How about a visa for life? It might sound too good to be true, but it’s a reality. And the offer ends October 31st.

4 Red Flags You Should Watch Out for When Hiring a Web Design Team

If you want to build traction for your startup, you need to invest in a high-quality website. You also can't afford to make too many mistakes, because a good website costs money.

UK showcases green dozen at Global Investment Summit

The Government reveals the 12 businesses from across the UK who will showcase their green technology and innovations at the Global Investment Summit.

Effective Approaches To Improve Fleet Efficiency For Your Business

Various types of businesses need a fleet, from car rental companies and public utilities to distribution centers, courier companies, and so many others. So, there are tons of enterprises out there that are constantly searching for better ways to enhance fleet efficiency, as any business that utilizes a fleet can ultimately enhance its bottom line if heightened efficiency is achieved.

Japan: Regulatory changes and business opportunity in 2016

Back to News

Over the past 12 months, Japan has implemented two major regulatory changes that are likely to impact business in 2016: the Residency requirement for company representatives and the My Number law.

Dr. Junichi Kato, Managing Director of TMF Japan, outlines recent regulatory changes – the impact and business opportunity that every company operating in Japan should know.

Residency requirement for company’s representative

To establish a legal entity in Japan, one of the requirements was that at least one director resided in the country. This residency requirement was abolished from 16 March 2015, for the most popular legal forms: K.K. (= Inc.) and GK (= LLC). The change is aimed at boosting foreign investment, making it easier for overseas companies to legally bind the subsidiary.

My Number

Japan has just introduced “My Number”, a resident record system similar to the social security number in the US; its main uses will be for social security, taxation and disaster response. Passed in 2013, the My Number law requires all companies in Japan collect and manage the numbers for their employees, both part-time and full-time. As My Number is classified as Sensitive Personal Information (SPI), companies are required to have the highest level of security for data and paper handling of the numbers. Those who leak the identity numbers/data will face criminal punishment and/or civil penalties.

2016 business opportunity

The Trans-Pacific Partnership (TPP) signed on 5 October 2015, is a new set of trade rules to build economic order and promote investment in the Asia-Pacific region. The TPP is expected to serve as a foundation for broader free trade in the region, and provide momentum to push forward other economic partnership negotiations that Japan is pursuing.

The Japanese Cabinet Secretariat estimates that the TTP would boost the country’s economy by 14 trillion yen (equivalent to 2.6% of its GDP in 2014) – a positive impact on both outbound and inbound businesses in Japan.

How we can help

TMF Group Japan can provide companies with local support for the registration process when appointing a representative director abroad, as well as a comprehensive solution for the My Number lifecycle management to help safeguard data. We also have offices in all the TPP countries – Japan, the United States, Australia, Peru, Malaysia, Vietnam, New Zealand, Chile, Singapore, Canada and Mexico (except Brunei), for clients operating in these jurisdictions.

Get in touch with our experts in Japan.


You are not logged in!

Please login or register to ask our experts a question.

Login now or register.