Provisional Translation
Meeting Material 3（Submitted by thesecretariat)

Future Activities of the Working Group for
Revising Regulations and AdministrativeProceduresProvisional Translation

Simplification of the regulations and administrative procedures relevant to foreign
direct investment in Japan A large number of foreign companies have pointed out that administrative procedures andregulations in Japan are hindering them from making investments in Japan.
 In response, the Working Group for Revising Regulations and Administrative Procedures,
which is held within the Council for Promotion of Foreign Direct Investment in Japan, will
discuss measures to simplify the regulations and administrative procedures relevant to theinvestment activities conducted by foreign companies in Japan.
 Matters on which conclusions can be reached early on will be addressed ahead of others bydeciding on concrete measures by the end of this year and promptly implementing them. Other
matters will be discussed and drawn conclusions within one year as to how regulations andadministrative procedures that are deemed too complex for foreign companies can bereviewed and simplified.
For the above, relevant descriptions were made in the “Policy Package for Promoting Foreign
Direct Investment into Japan to Make Japan a Global Hub” (adopted by the Council for Promotionof Foreign Direct Investment in Japan on May 20, 2016), “Basic Policy on Economic and Fiscal
Management and Reform 2016” and “Japan Revitalization Strategy 2016”.
１

Results of the Questionnaire Survey Conducted by JETRO (Preliminary Report)Provisional Translation

This June, JETRO sent a questionnaire form to about 1,300 foreign companies and received replies from about 200 of them.
With regard to the factors that hinder foreign companies from doing business in Japan, the number of respondents who chose “procedures related to the status of residence”
was the largest, followed by “taxation–related procedures “ and “procedures related to product safety standards (including pharmaceuticals and medical equipment).”
Procedures regarding social insurance, labor affairs, international trade and company registration were also chosen by a relatively large number of respondents.

Inhibiting factors

Procedures and systems related to inhibiting factors

Complicatedadministrative
procedures
Procedures for company registration(including certification of the articles ofincorporation)
Taxation-related procedures (for corporate,inhabitant and other taxes)
Procedures for social insurance(employment insurance, pension andothers)
Labor affairs-related procedures (so-called
36 Agreement, employment regulations andothers)
Procedures related to the status ofresidence (visas)
Procedures for intellectual properties(applications, examinations and others)

Incompatibility of
Lack ofdomestic
Too many
Unclearness
information about
regulations/strict regulatory andabout contacts for preferential
licensing systems licensing systems filing applications systems andwith international
support services
systems

The procedures
cannot be done Others
onlineUnselect Total
ed13501140125

19773871052

12639170038

131073201137

151584381054

6312231018

69

1024

50

137

3622

1300

17

134

1

1000

10519163142050

Others

7863

54

5038

Unselected

5403230198

215

Total

105

9564

36

3148

11201

591

Trade-related procedures (customs,
import/export declarations and others)
Procedures to obtain building permits andothers
Procedures related to environmentalregulations (environmental assessmentsand others)
Procedures concerning product safety
standards and others*Multiple answers allowed２

Provisional Translation

Issues for Foreign Companies and Others
1. Registration for incorporation of a company
For foreign nationals who have no address in Japan, it is necessary to obtain a certificate of signature instead of a certificate of aseal impression.
For registering to establish a stock company, it is necessary to pay the capital through a financial institution and submit thecertificate issued by the institution. It is, however, difficult for a foreign corporation or person with no local address to open a bankaccount in Japan.

2. Certificate of eligibility for resident statusIt takes time to obtain/update the certificate, and the length of which cannot be estimated.
Applicants need to visit the relevant governmental office to carry out the procedures.

3. Taxation, social insurance and labor affairs

Notifications need to be made to each relevant governmental office when establishing a corporation, etc.
The systems and procedures are complicated and enough information is not provided in English.

4. Import and sale of products

When importing cosmetics and tableware, it is necessary to conduct complicated procedures, including notifying, testing andmeeting requirements related to quality labeling.
Data obtained abroad cannot be used due to the unique standards in Japan.

5. OthersDocuments written in foreign languages need to be translated into Japanese for submission.
For procedures regarding the licensing systems enforced in individual business fields in Japan, strict requirements need to be metand much time is needed to follow the relevant procedures.
*Issues identified through interviews made by the secretariat and based on JETRO’s survey results３

Schedule (Planned)

Provisional Translation

August 17, 2016:
First meeting of the Working Group (WG) on the steps to be taken the WG and theprocedures relative to register new company
September to November, 2016:
Several meetings of the WG to discuss individual items
December, 2016:- Meeting of the WG to decide on concrete measures for items to be implementedearlier- Meeting of the Council for Promotion of Foreign Direct Investment in Japan, in whichconcrete measures decided upon by the WG will be reported
January to May, 2017:- Several meetings of the WG to discuss ongoing items (decided by December) andnew items
Possibly June, 2017:-Meeting of the WG to decide on concrete measures for the targeted items-Meeting of the Council for Promotion of Foreign Direct Investment in Japan, in whichconcrete measures decided upon by the WG will be reported
４