Japan - Market Entry and Legal Services

Lawyer & Law Firm in Japan

Japan is the third largest economy in the world after the United States of America and China. It is a crucial member of the international trade system having a market that is known for its code of conduct and that offers strong protection for intellectual property rights. Japan has a large consumer economy which is broad based and quite sophisticated. The deep trade integration and strategic alliance between India and Japan offers wide range of opportunities for entrepreneurs from both countries across sectors.

Commercial Relations between India-Japan

• India is the largest beneficiary of Japanese Official Development Assistance (ODA) loans, with loans extended for projects in sectors like connectivity, water supply, healthcare, and biodiversity conservation.
• India's exports to Japan have grown by 58% over 15 years, reaching $6.1 billion in the fiscal year 2021-2022, with notable categories including mineral fuels, organic chemicals, and pearls.
• India's imports from Japan have surged by nearly 160% over 15 years, reaching $16.4 billion in the fiscal year 2022-2023, with key imports including nuclear reactors, electrical machinery, and rare earth metals.
• The total trade between India and Japan is valued at $21.95 billion, with India exporting $5.4 billion worth of goods to Japan and importing $16.4 billion worth of products from Japan. This highlights the strong economic relationship between the two countries.

Business Advantage for Indian Companies in Japan

Indian companies seeking to expand their business operations in Japan can benefit from several advantages that make it an attractive market. First, the robust strategic partnership between India and Japan creates a favourable business environment, facilitating collaboration and mutual growth. Second, Japan's reputation for advanced technology and innovation provides opportunities for Indian companies to tap into technological expertise and knowledge-sharing, fostering innovation and improving competitiveness. Additionally, Japan boasts a significant consumer market with high purchasing power and diverse preferences, allowing Indian companies to tailor their products and services to meet the demands of Japanese consumers. The well-developed infrastructure, including transportation networks and research facilities, supports efficient business operations and supply chains. Moreover, Japan's highly skilled and disciplined workforce offers access to talent and opportunities for knowledge exchange. The Japanese government's initiatives and financial assistance programs further support foreign businesses, providing grants, subsidies, and loans to enhance operations. Japan's long-term perspective and commitment to sustainable growth align well with Indian companies' aspirations for stability and growth. Lastly, ongoing efforts to improve the business environment and regulatory frameworks make it increasingly easier for Indian companies to establish and operate in Japan.

Incentives and Support Programs by Japan for Indian Companies

Japan offers various incentives and support programs to attract and assist Indian companies looking to establish a presence or expand their operations in Japan. Some of the incentives and support programs provided by Japan include:

• Japan External Trade Organization (JETRO) offers business support services to foreign companies, including Indian companies.
• Japan provides investment promotion incentives, including tax incentives, grants, and subsidies, to attract foreign investment.
• Special Economic Zones (SEZs) in Japan offer various incentives, including tax breaks and simplified administrative procedures, for companies operating within these zones.
• Japanese government organizations provide support for research and development (R&D) activities, including funding programs and collaboration opportunities.
• Japan offers training and workforce development programs to support foreign companies in developing the necessary skills and knowledge for the Japanese market.
• Japan has a robust intellectual property protection system, providing legal frameworks, patent registration, and enforcement mechanisms.
• Business incubation centres in Japan provide support, mentoring, networking, and funding opportunities for start-ups and new businesses.
• Various government initiatives and agencies in Japan streamline administrative procedures and provide guidance for foreign companies entering the market.

Starting a Business in Japan

• Opening a Bank Account
• Secure an Office Space
• Get Articles of Incorporation ready
• Get Articles of Incorporation Notarized
• Deposit the Initial Capital
• Prepare all the Documents
• File Application for Business Registration
• Obtain Registry Certificate, Seal Certificate and Corporate Number

Visa and Immigration

Japan offers various types of visas for individuals who wish to engage in business activities in the country. The appropriate visa category depends on the nature and duration of the business activities. Some common visa types for doing business in Japan include:
 

• Business Manager Visa (Investor/Business Manager)
• Highly Skilled Professional Visa
• Engineer/Specialist in Humanities/International Services Visa
• Intra-Company Transferee Visa
• Investor/Business Manager Visa for Small and Medium Enterprises

In conclusion, entering the Japanese market requires a thorough understanding of the cultural, regulatory, and business landscape. While there are significant opportunities in sectors such as automotive, electronics, healthcare, and tourism, businesses must also navigate strong competition and comply with strict regulations.

To read more about the Japan market and various business opportunities – CLICK HERE

How Do We Help?

At India Law Offices (ILO), we strive to deliver exceptional legal services to our clients not just within India, but on a global scale. Over the past two decades, we have diligently expanded our presence by establishing strong partnerships, both formal and informal, with esteemed professionals from leading law firms in key commercial hubs worldwide. These alliances have empowered us to offer efficient and seamless representation of the utmost quality in any jurisdiction. Through our extensive network, we are able to cater to the diverse needs of our clients and ensure that they receive top-notch legal assistance across borders.

With a host of global affiliations with some of the largest law firms and legal networks, India Law Offices makes business possible worldwide for its clients. We provide comprehensive support to companies from Japan seeking to enter the Indian market. Our services encompass various aspects such as establishing subsidiaries or branches, navigating commercial contracts, and addressing any legal requirements. Additionally, we extend our expertise to Indian companies aiming to expand their operations in Japan, offering corporate assistance and legal support tailored to their specific needs. In collaboration with our counterparts from Japan, we are well-equipped to provide guidance on cross-border transactions between India and Japan, including mergers and acquisitions (M&A), joint ventures, and other related activities. We are committed to helping our clients navigate the complexities of Indo- Japan business collaborations and achieve their desired outcomes. Our expertise extends to a wide range of areas, ensuring comprehensive assistance in various aspects such as:

• Corporate and M&A – Incorporation of Company, Branch Office, Merger & Acquisitions, Joint venture, Technical Collaboration, Taxation, Financial Reporting
• Commercial Contracts – Drafting & vetting of contracts like franchising, distribution, sales and marketing, licensing etc.
• Business and Civil Litigation – Representation before courts and judiciary bodies, Arbitration, Mediation
• Immigration – Obtaining Visa, Citizenship, Visa extension, Work Permit etc.
• Labour & Employment – Advice on Employment Laws, Tax implication on French nationals working in India, Drafting Employment Contracts & HR Policy
• Real Estate – Buying & Selling of Property, Development of real estate projects.
• Intellectual Property Rights – Trademark, Copyright & Patents registration
• Family Law and Inheritance – Cross border Divorce, Marriage Registration, Child Custody, Adoption, Drafting Will, Setting up Trust or Estate

Our Partner in Japan

India Law Offices and Kojima Law Offices, have formed a collaborative partnership to facilitate legal work between India and Japan. This collaboration is strengthened by their mutual membership in PraeLegal, a network comprising independent commercial and business law firms. By leveraging this association, both firms can effectively address legal matters that arise between the two countries. This cooperative alliance enables them to provide comprehensive legal services and expertise to clients involved in cross-border transactions, ensuring a seamless and efficient approach to matters spanning India and Japan. Kojima Law Offices has offices located in Tokyo, Japan and offers expertise in areas of Corporate Law, International Commercial Arbitration, Tax Law, Labour Law, Employment Law, Intellectual Property, Joint Ventures, Dispute Resolution and Mergers & Acquisitions.

If you are a Japanese company or individual seeking assistance in India or an Indian entrepreneur planning to enter the Japanese  market, we encourage you to complete the form below and connect with our team of legal experts. We are dedicated to providing the guidance and support you require.