🇯🇵 Japan · Investment
Foreign investment rules, incentives, investment promotion agencies, and restricted sectors.
Quick answer
Japan promotes inward investment through JETRO, with generally free capital movement. Investments in designated sensitive sectors need prior notification under the Foreign Exchange and Foreign Trade Act (FEFTA); incentives include subsidies, special zones and support for R&D and regional projects.
JETRO promotes and supports inward investment; certain foreign investments in designated sectors require prior notification under the Foreign Exchange and Foreign Trade Act (FEFTA).
- JETRO offers free consultation and support to foreign companies entering Japan.
- Investment in designated sensitive sectors may require prior notification under FEFTA.
- FEFTA screening is administered by the Ministry of Finance with the relevant ministries.
Step-by-step
- 1
Check the investment regime
Japan broadly welcomes FDI, with JETRO providing free support to foreign investors setting up.
- 2
Check FEFTA notification
Investments in designated sensitive sectors need prior notification under the Foreign Exchange and Foreign Trade Act.
- 3
Choose your vehicle and register
Set up a kabushiki kaisha (KK) or branch, register the company and file with the tax office.
- 4
Access incentives
Use national and prefectural subsidies, special economic zones and R&D support programs where eligible.
- 5
Handle capital and repatriation
Capital moves generally freely with post-transaction reporting; dividends and profits repatriate freely.
- 6
Meet reporting and protections
File FEFTA post-facto reports where required and keep corporate/tax filings; Japan’s legal system and treaties protect investors.
Checklist
- Open regime + JETRO support
- FEFTA prior notification (sensitive sectors)
- KK/branch + company registration + tax office
- National/prefectural subsidies + special zones
- Free capital movement (post-transaction reporting)
- FEFTA reports + corporate/tax filings
- Investment-treaty protection
- CTA to .com/.ai for AI-assisted planning
Official authorities
- JETRO
Investment promotion agency.
- Ministry of Finance — Foreign investment (FEFTA)
Administers inward-investment review under FEFTA.
Frequently asked questions
Does Japan screen foreign investment?
Only in designated sensitive sectors, which need prior notification under FEFTA; other inbound investment is generally free with post-facto reporting.
Can I own 100% of a Japanese company?
Yes — foreign investors can generally own 100% of a Japanese company outside the sensitive sectors covered by FEFTA notification.
Can I repatriate profits from Japan?
Yes — dividends and capital move freely (with reporting), though withholding tax may apply to outbound dividends.
Official-information aggregation, not legal advice. Always verify on the authority's own site.
Government portals
- Prime Minister's Office of Japan — Official site of Japan's Prime Minister — cabinet policies, press conferences, policy statements
- Ministry of Foreign Affairs of Japan — Japan visa applications, overseas safety info, consular services, and diplomatic policy
- Immigration Services Agency of Japan — Residence status, work visas, permanent residency, and naturalization in Japan
- National Tax Agency (Japan) — Income tax, corporate tax, consumption tax filing and e-Tax online submission