Regulatory & Setup Guidance
Japan's regulatory environment is complex but manageable with the right guidance. TVC's Japan Desk team — supported by Tokyo Consulting Group's nationwide legal and compliance specialists — ensures your Japan operations are fully compliant from day one.
Key Regulatory Areas
Our Japan regulatory team covers all aspects of compliance for foreign companies entering Japan or executing Japan M&A.
Foreign Exchange & Foreign Trade Act (FEFTA)
Japan's primary foreign investment screening mechanism. Certain sectors require prior notification to the Ministry of Finance before completing an acquisition. We assess applicability and manage filing requirements.
Company Registration & Legal Entity Setup
Establishing a Japanese entity requires registration with the Legal Affairs Bureau. We support KK (Kabushiki Kaisha), GK (Godo Kaisha), and branch office establishment from documentation through to registration completion.
Industry-Specific Licensing
Many Japanese business activities require specific licenses — including financial services, healthcare, construction, and telecommunications. We identify requirements and coordinate licensing applications.
Labor & Employment Law
Japan's labor law is highly employee-protective. We advise on compliant employment contracts, work rules (shuugyou kisoku), and the specific requirements around transferring employees in M&A transactions.
Antitrust & Competition Filings
Japan Fair Trade Commission (JFTC) merger filings are required for transactions exceeding domestic sales thresholds. We assess thresholds and manage JFTC notification and clearance.
Tax & Transfer Pricing
Japanese tax rules for cross-border transactions — including withholding tax, transfer pricing, and thin capitalization — require specialist advice. We coordinate with leading Japan tax advisors.
Regulatory Process Timelines
Understanding how long regulatory processes take in Japan is critical for deal planning. These timelines can significantly impact transaction closing schedules.
Important Clarifications
- Japan's regulatory environment is generally open to foreign investment outside designated 'core' sectors
- FEFTA screening applies to acquiring shares in Japanese listed companies in sensitive sectors — not all M&A
- Most commercial acquisitions of SMEs do not trigger FEFTA prior notification requirements
- Japanese company registration requires a representative director with a Japanese address (a registered address service can be used)
- Foreign bank accounts are not accepted for Japanese payroll — a Japanese yen bank account is mandatory
TCG's Regulatory Team
Tokyo Consulting Group's specialized regulatory and compliance teams handle licensing, filings, and company registrations across all 26 Japan offices. Our lawyers and certified public accountants work seamlessly with TVC's M&A advisory teams.
Discuss Regulatory NeedsNavigate Japan's Regulatory Environment with Confidence
Contact our Japan regulatory specialists for a compliance assessment tailored to your specific business activities and transaction.
Request Regulatory Assessment