Chinese Investment in Japan

Broadly speaking, the methods by which Chinese companies can invest in Japan can be divided into incorporating a new Japanese company and acquiring an existing Japanese company.

Regardless of the method chosen, the investor must comply with the procedures required under Japanese law, which differs in many respects from Chinese law. For example, when incorporating a Japanese company, no permits or approvals are required, unlike when a Chinese company is incorporated. Further, if you choose to incorporate a Japanese stock company (most companies incorporated in Japan take the form of a stock company), the Japanese Companies Act does not impose any restrictions on stock companies’ capital, which means that in theory a stock company could be incorporated with only one yen in capital. This differs considerably from China, where a high minimum amount is stipulated for the registered capital of stock companies.

The above are merely examples to show that a knowledge of Japanese law is essential for Chinese companies seeking to invest in Japan. In addition, although permits and approvals are not required when incorporating a Japanese company, it is necessary to follow the proper incorporation procedures and registration procedures after incorporation under the Companies Act.

Services provided by Kuroda Law Offices

We are proud to offer services relating to investment in Japan in response to our clients’ needs, including advising on the selection of the method of investment in Japan, introductory advice on Japanese law with comparisons to Chinese law and acting on our clients’ behalf in incorporation and registration procedures under the Companies Act. We can provide these services in Chinese and English, as well as Japanese, as our clients require.