Japan Desk · Regulatory

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.

Get Regulatory Guidance All Japan Desk Services

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.

Applies to: Defense, cybersecurity, critical infrastructure, media, utilities

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.

Applies to: All foreign companies entering Japan

Industry-Specific Licensing

Many Japanese business activities require specific licenses — including financial services, healthcare, construction, and telecommunications. We identify requirements and coordinate licensing applications.

Applies to: Finance, healthcare, construction, telecom, food

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.

Applies to: All M&A transactions involving Japanese employees

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.

Applies to: Larger transactions and market-dominant companies

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.

Applies to: All cross-border transactions and related-party arrangements

Process	Notes	Timeline
K.K. Registration	Standard company registration	2–4 weeks
Bank Account Opening	Japanese banks are slow; plan ahead	4–8 weeks
FEFTA Prior Notification	After filing; review period	30 days
Industry License Applications	Highly variable by sector	2–6 months
JFTC Merger Clearance	Depending on complexity	30–120 days

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.

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Navigate Japan’s Regulatory Environment with Confidence

Contact our Japan regulatory specialists for a compliance assessment tailored to your specific business activities and transaction.

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