Japan 2017 (English & Chinese)

Shigehiko Ishimoto, Kang Shi, Takahiro Homma, and Norimitsu Mori

Mori Hamada & Matsumoto

Section 1: China outbound investment

a) What are the key sectors in Japan that attract, or to which the government is seeking to attract, China outbound investment (COI)?

Japan is a huge, sophisticated market, of which GDP is ranked third in the world. After two “lost” decades following the burst of the bubble economy in the early 90s, the Japanese economy is on a track of recovery, and is a global leader in the areas of high technology and R&D.

Recently, real estate has been one of the most attractive sectors for COI. Many Chinese investors in Japanese real estate expect a rise in real estate prices and a comfortable living environment, demonstrated by safe, clean and well-developed infrastructure.

In addition, among others, the tourism, energy, and life science fields are also attractive sectors for foreign direct investment (FDI), according to the government-affiliated Japan External Trade Organization (JETRO), which promotes mutual trade and investment between Japan and the rest of the world.

The manufacturing field has also been a high-profile target of FDI for years. There have been several remarkable COI precedents in the manufacturing field, including the acquisition of Toshiba Lifestyle Products & Services Corp. by Midea Group Co. Ltd. in 2016 (see 1c).

b) Is the government generally supportive of COI? Can you describe the current political climate surrounding China and Japan?

The Japanese government announced that it promotes foreign investment by being “the best country in the world in which to do business.” The Council for Promotion of Foreign Direct Investment in Japan was established in April 2014, and announced a “Policy Package for Promoting Foreign Direct Investment into Japan to Make Japan a Global Hub” in May 2016, aiming to further encourage FDI in Japan. Under the Policy Package, the Japanese government will strive to resolve issues faced by foreign companies such as the complexity of regulations and administrative procedures, difficulty in securing highly-skilled human resources, and language barriers.

Also, JETRO serves useful information and support for foreign investors in various languages, including Chinese at jetro.go.jp/sc/invest.

In addition to the general framework for FDI, while some political tension exists between China and Japan, the close ties between the Chinese and Japanese economies provide a solid basis for the development of COI. As of 2015, China is Japan's most significant trading partner, and Japan is the second-most significant to China after the U.S., according to the Ministry of Foreign Affairs of Japan.

c) What are some notable Chinese investments or M&A that have recently taken place in Japan?

According to RECOF DATA Corp., an M&A database company, the highest-recorded total number (51 transactions) and value (JPY932.2 billion) of M&A transactions by Chinese companies with Japanese companies were in 2016. One significant M&A transaction of COI to Japan in 2016 was when Midea Group acquired 80.1% shares in Toshiba Lifestyle Products & Services, a home appliance company and wholly-owned subsidiary of Toshiba Corp., for approximately $473 million.

Section 2: Investment vehicles and capital

a) What are the most common legal entities and vehicles used for COI in Japan? How long do they take to become operational?

The most common legal entity in Japan is the joint stock company (kabushiki kaisha) (KK), and likewise common for FDI including COI. The features of a KK are limited liability of shareholders and flexible structure of corporate governance depending on the size of the company. In addition, a limited liability company (godo kaisha) (GK) is worth considering for FDI in Japan. GKs also secure limited liability of its members like KKs do, but the structure of the company can be more flexible than with KKs, for instance, they do not have to establish shareholders' (members') or board meetings, and one or more executive members (shareholders) decide and execute the operation while the management and profit-sharing systems can be designed by the GK establishment contract.

KKs and GKs must be registered with the Legal Affairs Bureau. Establishment generally takes one or two weeks.

b) What are the key criteria for establishment and operation of these vehicles that are relevant to COI (e.g. capital requirements, local directors)?

There are no special criteria for establishment and operation of KKs and GKs. KK and GK both have no capital requirement—although too little capital could affect commercial credibility—and no requirements for local directors (executive members), though the GK management system is much more flexible than KK.

Section 3: Investment approval

a) Explain the process and timing for foreign investment regulatory approval (including any national security review).

Generally, the Japanese market is open to foreign investors with only some limited exceptions based on industry type. Japan does not have general restrictions that prohibit ownership or limit shareholding ratio by foreign investors, although some specific industries have such restrictions, like broadcasting, telecommunications and aviation.

Under the Foreign Exchange and Foreign Trade Act (FEFTA), foreign investors are required to follow pre- or post-filing procedures depending on the type and manner of inbound direct investment. In many cases, post-filing (i.e. reporting to the Bank of Japan, which must be done by the 15th day of the month immediately following the month in which the investment is made) is sufficient, but certain investments (e.g. in national security or other areas of national interest including weaponry, nuclear energy, petroleum, agriculture and infrastructure such as electricity and gas) require pre-filing with and approval by the government.

b) Briefly explain the investment restrictions for any especially regulated/restricted sectors (e.g. natural resources, financial services, telecom and infrastructure), including whether the government is entitled to any special rights (e.g. golden shares) in those sectors.

As described in 3a, certain industries, including broadcasting, telecommunications and aviation, have restrictions on ownership or limit the ratio of foreign shareholders. In terms of financial services, while certain industrial regulations and governmental supervision are required, there are no restrictions on FDI.

c) Which authority oversees competition clearance, when is notification mandatory, and what is the merger control process (including pre- and post-closure)?

The Japan Fair Trade Commission (JFTC) enforces Japanese competition law (i.e. the Anti-monopoly Act). Pre-filing is required when a company conducts a certain M&A transaction such as a stock transfer (shareholding ratio thresholds are 20% and 50%), merger, company split, stock exchange or asset transfer, and the transaction triggers a certain threshold, which is generally calculated based on domestic revenue. Once the JFTC receives the pre-filing, the investor must wait 30 days before implementing the transaction. The JFTC may shorten the waiting period upon request of the investor if the transaction clearly raises no anti-monopoly issues. On the other hand, if the JFTC requires the investor to submit any additional reports, information or other materials for further examination purposes, the waiting period will be extended to the later of: (i) the day after 120 days following the JFTC's receipt of the pre-filing; or (ii) the day after 90 days following the JFTC's receipt of all additional reports, information or other materials required by the JFTC.

d) Are there any unique processes that could potentially block a foreign investment (e.g. consent from labor unions)?

There are no unique processes required that could potentially block FDI other than the transactions listed in 3c. Generally, consent from labor unions is not required for FDI, although, as a practical matter, the understanding and cooperation of labor unions are important for the smooth transition of ownership in certain cases.

e) Are there approval requirements when a foreign investor increases or exits its investments?

Generally, the same procedures described in 3a and 3c apply to increases of investment. There are no specific approval requirements for FDI exits.

Section 4: Tax and grants

a) Are there tax structures and/or favorable intermediary tax jurisdictions that are particularly useful for FDI into Japan?

Generally, there are no specific tax structures or favorable intermediary tax jurisdictions particularly useful for FDI into Japan. There are some jurisdictions, however, that have favorable tax treaties with Japan such as Singapore and Hong Kong, subject to certain requirements.

b) What are the applicable rates of corporate tax and withholding tax on dividends?

The standard effective corporate tax rate in Japan is 29.97% for fiscal 2016, which was lowered about 7% in the three years since the 37.00% rate of fiscal 2013. Further reduction to 29.74% is scheduled for fiscal 2018.

A non-Japanese corporate shareholder who does not have a permanent establishment (PE) in Japan is subject to withholding tax on dividends from a Japanese corporation. If there are no applicable tax treaties, the rate of Japanese withholding tax is generally 20.42%. As for the China-Japan tax treaty, please see 4e.

c) Does the government have any FDI tax incentive schemes in place?

Yes, both the national and local governments offer appealing tax incentives to facilitate FDI in Japan including regulatory exemptions, tax support and fiscal support. Establishing businesses in special economic zones (e.g. National Strategic Special Zone and Comprehensive Special Zone) designated by the government is one way to be entitled to such incentives. In addition, the Act for Promotion of Japan as an Asian Business Center, in effect since November 2012, provides certain incentives (e.g. income tax breaks and patent fee reductions) for foreign companies to establish affiliates in Japan in order to promote R&D centers and regional headquarters of foreign companies.

d) Other than through taxes, does the government provide any other financial support to investors? If so, please provide an overview.

Both the national and local governments offer other financial support including subsidies and low-interest financing.

Incentive and subsidy plans for FDI are summarized on JETRO's website at jetro.go.jp/en/invest/incentive_programs.

e) Are there any reciprocal tax arrangements between Japan and China? If so, how can they aid investors?

China and Japan entered into a tax treaty which has been in effect since June 1984. Under the treaty, dividends, interest and royalties paid by Japanese companies to Chinese investors are subject to tax in China. At the same time, such dividends, interest and royalties are also taxed in Japan, but will not exceed 10% of the gross amount of the dividends, interest and royalties.

Section 5: FX controls and local operations

a) What foreign currency or exchange restrictions should investors be aware of?

There are no material currency or exchange restrictions on foreign investors in Japan.

b) Are there any legal restrictions on bringing in foreign workers? How difficult is it to secure expatriate visas for shareholder representatives, senior managers and workers in practice?

Foreign employees other than permanent or long-term residents must have a valid working visa to work in Japan. The types and effective terms of visas vary depending on employee status and activity. Generally, business managers can easily obtain working visas, but employees may be required to be highly skilled or have technical knowledge in certain fields.

c) What are the requirements and process for purchasing commercial property?

Generally, foreign investors can freely purchase commercial property such as real property and equipment. It is important to note that if foreign investors purchase real property in Japan, they must report the transaction to the Bank of Japan within 20 days following the transaction.

Section 6: Dispute resolution

a) Does Japan have a bilateral investment protection treaty with China or other locations commonly used for investing into the country?

China, Japan and South Korea entered into the China-Japan-Republic of Korea Agreement for the Promotion, Facilitation and Protection of Investment in May 2012, which has been effective since May 2014. The purpose of the agreement is to promote investment and establish a legal framework with respect to such investment among the three countries.

b) How efficient are local courts' enforcement and dispute resolution proceedings, and are there any procedural features that foreign investors must be aware of?

The litigation process in Japanese courts is generally reliable, but it can take a long time to obtain a judgment. In many cases, courts offer a settlement to the disputing parties after a certain examination of the evidence. A party who seeks dispute resolution can choose mediation, which is also conducted by courts but through a more flexible and rapid process. There is no discovery process like in the U.S.

c) Do local courts respect foreign judgements and are international arbitration awards enforceable? Are local judgments and arbitration awards from Japan generally enforceable in other jurisdictions?

Japanese courts recognize judgments obtained in foreign courts only if there are mutual guarantees between Japan and the countries where such judgments were made and the judgments were obtained through a process that meets certain requirements. Japanese and Chinese courts do not have such mutual guarantee to recognize their respective judgments; therefore, judgments obtained in China are not enforceable in Japan, and vice versa.

As for international arbitration awards, since Japan is party to the New York Convention, arbitration awards obtained in member countries of the Convention, including China, are enforceable in Japan.

Shigehiko Ishimoto

Shigehiko Ishimoto is a partner at Mori Hamada & Matsumoto (MHM), admitted in both Japan (1994) and New York (2001). As a core member of the firm's China Practice Group, Asia Practice Group and International Trade Practice Group, he advises a number of Japanese and foreign clients in English and Mandarin Chinese. Mr. Ishimoto graduated from the University of Tokyo (LL.B.) and New York University School of Law (LL.M.).

Kang Shi

Kang Shi has been practicing law since 1997. From 2005 to 2009, he worked in New York focusing on U.S. domestic and international mergers & acquisitions, securities offerings, private equity investments and fund formations. Since 2009, he has been working in Asia on cross-border transactions involving multiple jurisdictions and complex structures, representing both Japanese and Chinese companies.

Takahiro Homma

Takahiro Homma is an associate at MHM, admitted in both Japan and New York. He is working on China-Japan investment transactions in Shanghai after working on a variety of matters including M&A transactions in Tokyo. He graduated from the University of Tokyo (LL.B.) and Columbia University (LL.M.). Mr. Homma is fluent in Mandarin as well as English and Japanese.

Norimitsu Mori

Norimitsu Mori is an associate at MHM, admitted in both Japan and New York. He focuses his practice on cross-border M&A and has experience working for the Japanese government to improve the corporate governance system in Japan. Currently, Mr. Mori mainly supports transactions between Japanese and Chinese companies at the Shanghai office of MHM.

日本

石本茂彦、康石、本间隆浩和森规光

森·滨田松本法律事务所

第一部分 : 中国境外投资

1. 日本哪些主要行业吸引中国境外投资，或者说政府希望将中国境外投资吸引到哪些主要行业？

日本是一个巨大又复杂的市场，GDP位居全球第三。在上世纪90年代早期的泡沫经济破灭后，日本走过了“失落”的二十年，如今日本经济步入复苏轨道，成为全球高科技和研发领域的领导者。

近期，房地产成为中国境外投资最热门的领域之一。日本房地产以安全、清洁和开发完善的基础设施见称，众多投资当地房地产的中国投资者预期房产价格增长和舒适的居住环境。

此外，根据政府下属的日本贸易振兴机构(简称“JETRO”，旨在促进日本与世界其他国家之间的双辺贸易和投资)，旅游业、能源和生命科学等领域也是吸引外商直接投资(外商直接投资)的主要领域。

多年来，制造业始终是外商直接投资的热门目标。制造业领域內有多个知名的中国境外投资先例，包括美的集团有限公司2016年收购东芝生活产品株式会社(见一3)。

2. 总体来说，政府支持中国境外投资吗？能否介绍一下中日目前的政治局势？

日本政府宣布，要通过成为“全球最佳经营地”来促进外商投资。对日投资促进会议成立于2014年4月，并在2016年5月发布了《使日本成为全球枢纽而促进外国对日直接投资的政策包》，旨在进一步促进对日外商直接投资。根据该政策包，日本政府将努力解决外国公司面临的问题，例如法规和行政程序的复杂性、获得高技能人力资源的困难性及语言障碍。

此外，JETRO在jetro.go.jp/sc/invest网站以包括中文在内的多国语种为外国投资者提供实用信息和支持。

除外商直接投资的总体框架外，中日经济体之间的密切联系为中国境外投资的发展提供了坚实基础，纵使中日两国间存在某些政治紧张局势。根据日本外务省的报告，截至2015年，中国是日本最重要的贸易伙伴，而日本是仅次于美国的中国第二大贸易伙伴。

3. 最近中国在日本进行了哪些重大的投资或并购交易？

根据并购数据库公司RECOF DATA Corp的数据，中日企业并购交易的总体数量和总金额在2016年创下最高纪录，分别达到51宗交易和9322亿日元。2016年，中国对日境外投资其中一宗重要的并购交易是美的集团以大约4.73亿美元收购东芝生活电器株式会社(东芝株式会社的全资家电子公司)的80.1%股份。

第二部分：投资工具和资本

1. 中国境外投资在日本最常用哪些法律实体和工具？要多少时间便可投入运作？

日本最常见的法律实体是股份制公司(株式会社)，同样，它也是包括中国境外投资在内的外商直接投资最常采用的法律实体。株式会社的特征是股东承担有限责任，以及视公司规模而定的灵活企业治理架构。此外，有限责任公司(合同会社)也值得在日本的外商直接投资考虑。合同会社的成员和株式会社一样承担有限责任，但合同会社的结构相比株式会社更加灵活，例如无须设立股东会或董事会，而是由一名或多名执行成员(股东)决定并执行运营，同时管理和利润分享体系可由合同会社的设立合同设计。

株式会社和合同会社必须经法务局注册。设立通常需要一至两周时间。

2. 关于这些投资工具的设立和营运，有哪些主要规定适用于中国境外投资(例如，资本要求、本地董事)？

设立和运营株式会社和合同会社没有特别条件。株式会社和合同会社都没有资本要求，但资本太低可能影响商业信用，对本地董事(执行成员)也没有要求，但合同会社的管理体系比株式会社灵活很多。

第三部分：投资审批

1. 请说明外国投资监管审批(包括任何国家安全审查)的程序和时间。

一般而言，日本市场向外国投资者开放，只有基于行业类别而有有限度的例外。日本没有禁止外国投资者所有权或限制持股比率的一般限制，但某些特定行业(例如广播、电信和航空)会实施该等限制。

根据《外汇及外贸管理法》(FEFTA)，并取决于对内直接投资的类别和方式，外国投资者必须遵守事前申报或事后申报程序。许多情况下只需作事后申报(即向日本银行报告，且必须在作出投资之月的下一个月的第15日前办理)，但特定投资(例如在国家安全或涉及国家利益的其他领域内的投资，包括武器、核能、石油、农业和基础设施，例如电力和天然气)要求事前向政府申报并获得批准。

2. 请简单说明一下对任何受特殊监管/限制的领域(例如自然资源、金融服务、电信和基础设施)的投资限制，包括政府是否在这些行业里有特殊权利(例如黄金股份)。

如上文三1所述，特定行业(例如广播、电信和航空)对外国股东的所有权和持股比例施加了限制。就金融服务而言，虽然规定了特定行业监管和政府监督，对外商直接投资并无限制。

3. 哪个机构负责竞争审查？什么情况下必须报告？并购控制程序是怎样的(包括在成交前或成交后控制)？

日本公平交易委员会(JFTC)执行日本竞争法(即反垄断法)。如果公司开展特定的并购交易，如股票转让(持股比例门槛为20% 和50%)、合并、公司分立、股票互换或资产转让，且交易达到了特定门槛(一般根据国内收入计算)，就需要做事前申报。在JFTC收到事前申报后，投资者须在执行交易前遵守30天的等待期。如果交易明显不涉及反垄断问题，JFTC可应投资者的请求缩短等待期。另一方面，如果JFTC为进一步审查而要求投资者提交任何补充报告、信息或其他资料，等待期将延长至下述两项的较晚时间：(i)JFTC收到事前申报后的120天；或(ii)JFTC收到其规定的所有补充报告、信息或其他材料后的90天。

4. 是否存在任何特别的程序会拦阻外国投资(例如需要工会的同意)？

没有特殊程序可能会对三3列举的交易之外的外商直接投资构成障碍。一般而言，外商直接投资不需要工会同意，但从实践上说，工会的理解和合作在某些情况下对所有权的顺利过渡至关重要。

5. 对外国投资者增资或撤资有什么审批要求吗？

一般而言，三1和三3所述的程序同样适用于增加投资，对外商直接投资退出没有特定的批准要求。

第四部分：税收及补助

1. 有没有一些税务结构或有利的中间税务管辖区，是对外商直接投资日本尤其有用的？

一般而言，不存在对日本的外商直接投资特别有用的特定税收结构或有利的中间税收司法管辖区。但是，某些司法管辖区域(如新加坡和香港)与日本签订了优惠税收协定，在符合特定要求时可以适用。

2. 企业所得税和股息预提税的适用税率是多少？

2016财年，日本有效的标准公司税率是29.97%，三年内下降大约7%(2013财年税率为37.00%)。计划在2018财年进一步下降至29.74%。

在日本无常设机构的非日本公司股东须就其获得的日本公司股息缴纳预提税。若无适用的税收协定，日本的预提税税率一般为20.42%。关于中日税收协定的情况见四5。

3. 政府是否有实施任何外国直接投资税务激励计划？

是的，国家和地方政府提供具有吸引力的税收激励措施来推动外商对日本的直接投资,包括监管豁免、税收支持和财务支持。在政府指定的特别经济区(例如国家战略特区和综合特区)设立企业是享受这些激励措施的一种方式。此外，《促进日本成为亚洲商业中心法》(2012年11月起生效)为外国企业在日本设立关联公司提供特定激励措施(例如所得税减免和专利费减除)，旨在推动外国企业设立研发中心和地区总部。

4. 除了税务之外，政府对投资者还提供其他财务支持吗？如有，请加以概述。

国家和地方政府都提供其他财务支持，包括补助和低利息融资。

JETRO网站上概述了为外商直接投資提供的激励和补助计划，参见jetro.go.jp/en/invest/incentive_programs。

5. 日本与中国之间是否有任何互惠税务安排？如有，这些安排如何帮助投资者？

中日两国签订了税收协定，自1984年6月起生效。根据协定，日本公司向中国投资者支付的股息、利息和特许权使用费须缴纳中国税收。同时，该等股息、利息和特许权使用费也需要在日本缴税，但不超过股息、利息和特许权使用费总金额的10％。

第五部分：外汇管制及本地经营

1. 有什么外币或外汇限制是外国投资者需要注意的？

日本不对外国投资者实施重大的货币或外汇限制。

2. 对输入外国劳工有什么法律限制？在操作上外国投资者为股东代表、高级管理人员和员工取得外国员工签证有多困难？

除永久或长期居民以外的外国雇员在日本工作，必须持有有效工作签证。签证的类别和有效期根据雇员的身份和活动而不同。一般而言，业务经理容易取得工作签证，但普通雇员可能必须在特定领域具备高等技能或技术知识。

3. 购置商业物业有什么规定和程序？

一般而言，外国投资者可自由购买商业地产(例如房地产和设备)。值得注意的是，如果外国投资者在日本购买房产，必须在交易后20日内向日本银行报告交易。

第六部分：争议解决

1. 日本是否有和中国或其他地方签订关于投资日本常用的双边投资保护协定？

中国、日本和韩国在2012年５月签订了《中日韩关于促进、便利和保护投资的协定》，并自2014年5月起生效。协议的目的是促进三国间的投资，并建立三国间投资的法律框架。

2. 当地法院的执行和争议解决程序的效率如何？有什么特别的程序是外国投资者必须注意的？

日本法院的诉讼程序一般是可靠的，但取得判决需较长时间。许多情况下，法院会在审查证据后向争议双方提供和解方案。寻求争议解决的一方可选择调解，调解也是由法院开展的，但程序更灵活快速。日本没有类似美国的取证程序。

3. 当地法院尊重外国判决吗？可执行国际仲裁裁决吗？日本的本地判决和仲裁裁决一般能否在其他司法管辖区执行？

如果日本与判决书国家之间有相互保证，且判决书是通过满足特定要求的程序取得的，日本法院会承认在外国取得的判决书。日本和中国法院没有承认各自判决书的相互保证，因此在中国取得的判决书不能在日本执行，反之亦然。

就国际仲裁裁决而言，因为日本是《纽约公约》的缔约国，在公约成员国(包括中国)取得的仲裁裁决可以在日本执行。

石本茂彦

石本茂彦是日本森·滨田松本法律事务所（MHM）的合伙人，拥有日本(1994)和纽约州(2001) 律师执业资格。作为该所中国业务部、亚洲业务部和国际贸易业务部的核心成员，他能运用英文和中文为日本和外国客户提供法律咨询。石本茂彦毕业于东京大学 (法学学士) 和纽约大学法学院 (法学硕士)。

康石

康石自1997年起执业。2005至2009年在纽约工作，主要从事美国本国和国际并购、证券发行、私募股权投资和基金设立。2009年以来，他在亚洲代表中国和日本企业，从事涉及多个司法管辖区的结构复杂的跨境交易。

本间隆浩

本间隆浩是MHM律师事务所律师，拥有日本和纽约州律师资格。他曾在东京从事包括并购交易在内的多项业务，目前在上海从事中日投资交易。本间隆浩毕业于东京大学 (法学学士) 和哥伦比亚大学 (法学硕士)，能够熟练运用中日英三国语言。

森规光

森规光是MHM律师事务所律师，拥有日本和纽约州律师资格。他主要从事跨境并购业务，并曾于日本政府工作，负责改进日本的公司治理体系。目前，森规光律师主要在MHM上海代表办事处负责日本和中国公司之间的交易支持工作。

Shigehiko Ishimoto, Kang Shi, Takahiro Homma, and Norimitsu Mori

Mori Hamada & Matsumoto

Section 1: China outbound investment

a) What are the key sectors in Japan that attract, or to which the government is seeking to attract, China outbound investment (COI)?

Japan is a huge, sophisticated market, of which GDP is ranked third in the world. After two “lost” decades following the burst of the bubble economy in the early 90s, the Japanese economy is on a track of recovery, and is a global leader in the areas of high technology and R&D.

Recently, real estate has been one of the most attractive sectors for COI. Many Chinese investors in Japanese real estate expect a rise in real estate prices and a comfortable living environment, demonstrated by safe, clean and well-developed infrastructure.

In addition, among others, the tourism, energy, and life science fields are also attractive sectors for foreign direct investment (FDI), according to the government-affiliated Japan External Trade Organization (JETRO), which promotes mutual trade and investment between Japan and the rest of the world.

The manufacturing field has also been a high-profile target of FDI for years. There have been several remarkable COI precedents in the manufacturing field, including the acquisition of Toshiba Lifestyle Products & Services Corp. by Midea Group Co. Ltd. in 2016 (see 1c).

b) Is the government generally supportive of COI? Can you describe the current political climate surrounding China and Japan?

The Japanese government announced that it promotes foreign investment by being “the best country in the world in which to do business.” The Council for Promotion of Foreign Direct Investment in Japan was established in April 2014, and announced a “Policy Package for Promoting Foreign Direct Investment into Japan to Make Japan a Global Hub” in May 2016, aiming to further encourage FDI in Japan. Under the Policy Package, the Japanese government will strive to resolve issues faced by foreign companies such as the complexity of regulations and administrative procedures, difficulty in securing highly-skilled human resources, and language barriers.

Also, JETRO serves useful information and support for foreign investors in various languages, including Chinese at jetro.go.jp/sc/invest.

In addition to the general framework for FDI, while some political tension exists between China and Japan, the close ties between the Chinese and Japanese economies provide a solid basis for the development of COI. As of 2015, China is Japan's most significant trading partner, and Japan is the second-most significant to China after the U.S., according to the Ministry of Foreign Affairs of Japan.

c) What are some notable Chinese investments or M&A that have recently taken place in Japan?

According to RECOF DATA Corp., an M&A database company, the highest-recorded total number (51 transactions) and value (JPY932.2 billion) of M&A transactions by Chinese companies with Japanese companies were in 2016. One significant M&A transaction of COI to Japan in 2016 was when Midea Group acquired 80.1% shares in Toshiba Lifestyle Products & Services, a home appliance company and wholly-owned subsidiary of Toshiba Corp., for approximately $473 million.

Section 2: Investment vehicles and capital

a) What are the most common legal entities and vehicles used for COI in Japan? How long do they take to become operational?

The most common legal entity in Japan is the joint stock company (kabushiki kaisha) (KK), and likewise common for FDI including COI. The features of a KK are limited liability of shareholders and flexible structure of corporate governance depending on the size of the company. In addition, a limited liability company (godo kaisha) (GK) is worth considering for FDI in Japan. GKs also secure limited liability of its members like KKs do, but the structure of the company can be more flexible than with KKs, for instance, they do not have to establish shareholders' (members') or board meetings, and one or more executive members (shareholders) decide and execute the operation while the management and profit-sharing systems can be designed by the GK establishment contract.

KKs and GKs must be registered with the Legal Affairs Bureau. Establishment generally takes one or two weeks.

b) What are the key criteria for establishment and operation of these vehicles that are relevant to COI (e.g. capital requirements, local directors)?

There are no special criteria for establishment and operation of KKs and GKs. KK and GK both have no capital requirement—although too little capital could affect commercial credibility—and no requirements for local directors (executive members), though the GK management system is much more flexible than KK.

Section 3: Investment approval

a) Explain the process and timing for foreign investment regulatory approval (including any national security review).

Generally, the Japanese market is open to foreign investors with only some limited exceptions based on industry type. Japan does not have general restrictions that prohibit ownership or limit shareholding ratio by foreign investors, although some specific industries have such restrictions, like broadcasting, telecommunications and aviation.

Under the Foreign Exchange and Foreign Trade Act (FEFTA), foreign investors are required to follow pre- or post-filing procedures depending on the type and manner of inbound direct investment. In many cases, post-filing (i.e. reporting to the Bank of Japan, which must be done by the 15th day of the month immediately following the month in which the investment is made) is sufficient, but certain investments (e.g. in national security or other areas of national interest including weaponry, nuclear energy, petroleum, agriculture and infrastructure such as electricity and gas) require pre-filing with and approval by the government.

b) Briefly explain the investment restrictions for any especially regulated/restricted sectors (e.g. natural resources, financial services, telecom and infrastructure), including whether the government is entitled to any special rights (e.g. golden shares) in those sectors.

As described in 3a, certain industries, including broadcasting, telecommunications and aviation, have restrictions on ownership or limit the ratio of foreign shareholders. In terms of financial services, while certain industrial regulations and governmental supervision are required, there are no restrictions on FDI.

c) Which authority oversees competition clearance, when is notification mandatory, and what is the merger control process (including pre- and post-closure)?

The Japan Fair Trade Commission (JFTC) enforces Japanese competition law (i.e. the Anti-monopoly Act). Pre-filing is required when a company conducts a certain M&A transaction such as a stock transfer (shareholding ratio thresholds are 20% and 50%), merger, company split, stock exchange or asset transfer, and the transaction triggers a certain threshold, which is generally calculated based on domestic revenue. Once the JFTC receives the pre-filing, the investor must wait 30 days before implementing the transaction. The JFTC may shorten the waiting period upon request of the investor if the transaction clearly raises no anti-monopoly issues. On the other hand, if the JFTC requires the investor to submit any additional reports, information or other materials for further examination purposes, the waiting period will be extended to the later of: (i) the day after 120 days following the JFTC's receipt of the pre-filing; or (ii) the day after 90 days following the JFTC's receipt of all additional reports, information or other materials required by the JFTC.

d) Are there any unique processes that could potentially block a foreign investment (e.g. consent from labor unions)?

There are no unique processes required that could potentially block FDI other than the transactions listed in 3c. Generally, consent from labor unions is not required for FDI, although, as a practical matter, the understanding and cooperation of labor unions are important for the smooth transition of ownership in certain cases.

e) Are there approval requirements when a foreign investor increases or exits its investments?

Generally, the same procedures described in 3a and 3c apply to increases of investment. There are no specific approval requirements for FDI exits.

Section 4: Tax and grants

a) Are there tax structures and/or favorable intermediary tax jurisdictions that are particularly useful for FDI into Japan?

Generally, there are no specific tax structures or favorable intermediary tax jurisdictions particularly useful for FDI into Japan. There are some jurisdictions, however, that have favorable tax treaties with Japan such as Singapore and Hong Kong, subject to certain requirements.

b) What are the applicable rates of corporate tax and withholding tax on dividends?

The standard effective corporate tax rate in Japan is 29.97% for fiscal 2016, which was lowered about 7% in the three years since the 37.00% rate of fiscal 2013. Further reduction to 29.74% is scheduled for fiscal 2018.

A non-Japanese corporate shareholder who does not have a permanent establishment (PE) in Japan is subject to withholding tax on dividends from a Japanese corporation. If there are no applicable tax treaties, the rate of Japanese withholding tax is generally 20.42%. As for the China-Japan tax treaty, please see 4e.

c) Does the government have any FDI tax incentive schemes in place?

Yes, both the national and local governments offer appealing tax incentives to facilitate FDI in Japan including regulatory exemptions, tax support and fiscal support. Establishing businesses in special economic zones (e.g. National Strategic Special Zone and Comprehensive Special Zone) designated by the government is one way to be entitled to such incentives. In addition, the Act for Promotion of Japan as an Asian Business Center, in effect since November 2012, provides certain incentives (e.g. income tax breaks and patent fee reductions) for foreign companies to establish affiliates in Japan in order to promote R&D centers and regional headquarters of foreign companies.

d) Other than through taxes, does the government provide any other financial support to investors? If so, please provide an overview.

Both the national and local governments offer other financial support including subsidies and low-interest financing.

Incentive and subsidy plans for FDI are summarized on JETRO's website at jetro.go.jp/en/invest/incentive_programs.

e) Are there any reciprocal tax arrangements between Japan and China? If so, how can they aid investors?

China and Japan entered into a tax treaty which has been in effect since June 1984. Under the treaty, dividends, interest and royalties paid by Japanese companies to Chinese investors are subject to tax in China. At the same time, such dividends, interest and royalties are also taxed in Japan, but will not exceed 10% of the gross amount of the dividends, interest and royalties.

Section 5: FX controls and local operations

a) What foreign currency or exchange restrictions should investors be aware of?

There are no material currency or exchange restrictions on foreign investors in Japan.

b) Are there any legal restrictions on bringing in foreign workers? How difficult is it to secure expatriate visas for shareholder representatives, senior managers and workers in practice?

Foreign employees other than permanent or long-term residents must have a valid working visa to work in Japan. The types and effective terms of visas vary depending on employee status and activity. Generally, business managers can easily obtain working visas, but employees may be required to be highly skilled or have technical knowledge in certain fields.

c) What are the requirements and process for purchasing commercial property?

Generally, foreign investors can freely purchase commercial property such as real property and equipment. It is important to note that if foreign investors purchase real property in Japan, they must report the transaction to the Bank of Japan within 20 days following the transaction.

Section 6: Dispute resolution

a) Does Japan have a bilateral investment protection treaty with China or other locations commonly used for investing into the country?

China, Japan and South Korea entered into the China-Japan-Republic of Korea Agreement for the Promotion, Facilitation and Protection of Investment in May 2012, which has been effective since May 2014. The purpose of the agreement is to promote investment and establish a legal framework with respect to such investment among the three countries.

b) How efficient are local courts' enforcement and dispute resolution proceedings, and are there any procedural features that foreign investors must be aware of?

The litigation process in Japanese courts is generally reliable, but it can take a long time to obtain a judgment. In many cases, courts offer a settlement to the disputing parties after a certain examination of the evidence. A party who seeks dispute resolution can choose mediation, which is also conducted by courts but through a more flexible and rapid process. There is no discovery process like in the U.S.

c) Do local courts respect foreign judgements and are international arbitration awards enforceable? Are local judgments and arbitration awards from Japan generally enforceable in other jurisdictions?

Japanese courts recognize judgments obtained in foreign courts only if there are mutual guarantees between Japan and the countries where such judgments were made and the judgments were obtained through a process that meets certain requirements. Japanese and Chinese courts do not have such mutual guarantee to recognize their respective judgments; therefore, judgments obtained in China are not enforceable in Japan, and vice versa.

As for international arbitration awards, since Japan is party to the New York Convention, arbitration awards obtained in member countries of the Convention, including China, are enforceable in Japan.

Shigehiko Ishimoto

Shigehiko Ishimoto is a partner at Mori Hamada & Matsumoto (MHM), admitted in both Japan (1994) and New York (2001). As a core member of the firm's China Practice Group, Asia Practice Group and International Trade Practice Group, he advises a number of Japanese and foreign clients in English and Mandarin Chinese. Mr. Ishimoto graduated from the University of Tokyo (LL.B.) and New York University School of Law (LL.M.).

Kang Shi

Kang Shi has been practicing law since 1997. From 2005 to 2009, he worked in New York focusing on U.S. domestic and international mergers & acquisitions, securities offerings, private equity investments and fund formations. Since 2009, he has been working in Asia on cross-border transactions involving multiple jurisdictions and complex structures, representing both Japanese and Chinese companies.

Takahiro Homma

Takahiro Homma is an associate at MHM, admitted in both Japan and New York. He is working on China-Japan investment transactions in Shanghai after working on a variety of matters including M&A transactions in Tokyo. He graduated from the University of Tokyo (LL.B.) and Columbia University (LL.M.). Mr. Homma is fluent in Mandarin as well as English and Japanese.

Norimitsu Mori

Norimitsu Mori is an associate at MHM, admitted in both Japan and New York. He focuses his practice on cross-border M&A and has experience working for the Japanese government to improve the corporate governance system in Japan. Currently, Mr. Mori mainly supports transactions between Japanese and Chinese companies at the Shanghai office of MHM.

日本

石本茂彦、康石、本间隆浩和森规光

森·滨田松本法律事务所

第一部分 : 中国境外投资

1. 日本哪些主要行业吸引中国境外投资，或者说政府希望将中国境外投资吸引到哪些主要行业？

日本是一个巨大又复杂的市场，GDP位居全球第三。在上世纪90年代早期的泡沫经济破灭后，日本走过了“失落”的二十年，如今日本经济步入复苏轨道，成为全球高科技和研发领域的领导者。

近期，房地产成为中国境外投资最热门的领域之一。日本房地产以安全、清洁和开发完善的基础设施见称，众多投资当地房地产的中国投资者预期房产价格增长和舒适的居住环境。

此外，根据政府下属的日本贸易振兴机构(简称“JETRO”，旨在促进日本与世界其他国家之间的双辺贸易和投资)，旅游业、能源和生命科学等领域也是吸引外商直接投资(外商直接投资)的主要领域。

多年来，制造业始终是外商直接投资的热门目标。制造业领域內有多个知名的中国境外投资先例，包括美的集团有限公司2016年收购东芝生活产品株式会社(见一3)。

2. 总体来说，政府支持中国境外投资吗？能否介绍一下中日目前的政治局势？

日本政府宣布，要通过成为“全球最佳经营地”来促进外商投资。对日投资促进会议成立于2014年4月，并在2016年5月发布了《使日本成为全球枢纽而促进外国对日直接投资的政策包》，旨在进一步促进对日外商直接投资。根据该政策包，日本政府将努力解决外国公司面临的问题，例如法规和行政程序的复杂性、获得高技能人力资源的困难性及语言障碍。

此外，JETRO在jetro.go.jp/sc/invest网站以包括中文在内的多国语种为外国投资者提供实用信息和支持。

除外商直接投资的总体框架外，中日经济体之间的密切联系为中国境外投资的发展提供了坚实基础，纵使中日两国间存在某些政治紧张局势。根据日本外务省的报告，截至2015年，中国是日本最重要的贸易伙伴，而日本是仅次于美国的中国第二大贸易伙伴。

3. 最近中国在日本进行了哪些重大的投资或并购交易？

根据并购数据库公司RECOF DATA Corp的数据，中日企业并购交易的总体数量和总金额在2016年创下最高纪录，分别达到51宗交易和9322亿日元。2016年，中国对日境外投资其中一宗重要的并购交易是美的集团以大约4.73亿美元收购东芝生活电器株式会社(东芝株式会社的全资家电子公司)的80.1%股份。

第二部分：投资工具和资本

1. 中国境外投资在日本最常用哪些法律实体和工具？要多少时间便可投入运作？

日本最常见的法律实体是股份制公司(株式会社)，同样，它也是包括中国境外投资在内的外商直接投资最常采用的法律实体。株式会社的特征是股东承担有限责任，以及视公司规模而定的灵活企业治理架构。此外，有限责任公司(合同会社)也值得在日本的外商直接投资考虑。合同会社的成员和株式会社一样承担有限责任，但合同会社的结构相比株式会社更加灵活，例如无须设立股东会或董事会，而是由一名或多名执行成员(股东)决定并执行运营，同时管理和利润分享体系可由合同会社的设立合同设计。

株式会社和合同会社必须经法务局注册。设立通常需要一至两周时间。

2. 关于这些投资工具的设立和营运，有哪些主要规定适用于中国境外投资(例如，资本要求、本地董事)？

设立和运营株式会社和合同会社没有特别条件。株式会社和合同会社都没有资本要求，但资本太低可能影响商业信用，对本地董事(执行成员)也没有要求，但合同会社的管理体系比株式会社灵活很多。

第三部分：投资审批

1. 请说明外国投资监管审批(包括任何国家安全审查)的程序和时间。

一般而言，日本市场向外国投资者开放，只有基于行业类别而有有限度的例外。日本没有禁止外国投资者所有权或限制持股比率的一般限制，但某些特定行业(例如广播、电信和航空)会实施该等限制。

根据《外汇及外贸管理法》(FEFTA)，并取决于对内直接投资的类别和方式，外国投资者必须遵守事前申报或事后申报程序。许多情况下只需作事后申报(即向日本银行报告，且必须在作出投资之月的下一个月的第15日前办理)，但特定投资(例如在国家安全或涉及国家利益的其他领域内的投资，包括武器、核能、石油、农业和基础设施，例如电力和天然气)要求事前向政府申报并获得批准。

2. 请简单说明一下对任何受特殊监管/限制的领域(例如自然资源、金融服务、电信和基础设施)的投资限制，包括政府是否在这些行业里有特殊权利(例如黄金股份)。

如上文三1所述，特定行业(例如广播、电信和航空)对外国股东的所有权和持股比例施加了限制。就金融服务而言，虽然规定了特定行业监管和政府监督，对外商直接投资并无限制。

3. 哪个机构负责竞争审查？什么情况下必须报告？并购控制程序是怎样的(包括在成交前或成交后控制)？

日本公平交易委员会(JFTC)执行日本竞争法(即反垄断法)。如果公司开展特定的并购交易，如股票转让(持股比例门槛为20% 和50%)、合并、公司分立、股票互换或资产转让，且交易达到了特定门槛(一般根据国内收入计算)，就需要做事前申报。在JFTC收到事前申报后，投资者须在执行交易前遵守30天的等待期。如果交易明显不涉及反垄断问题，JFTC可应投资者的请求缩短等待期。另一方面，如果JFTC为进一步审查而要求投资者提交任何补充报告、信息或其他资料，等待期将延长至下述两项的较晚时间：(i)JFTC收到事前申报后的120天；或(ii)JFTC收到其规定的所有补充报告、信息或其他材料后的90天。

4. 是否存在任何特别的程序会拦阻外国投资(例如需要工会的同意)？

没有特殊程序可能会对三3列举的交易之外的外商直接投资构成障碍。一般而言，外商直接投资不需要工会同意，但从实践上说，工会的理解和合作在某些情况下对所有权的顺利过渡至关重要。

5. 对外国投资者增资或撤资有什么审批要求吗？

一般而言，三1和三3所述的程序同样适用于增加投资，对外商直接投资退出没有特定的批准要求。

第四部分：税收及补助

1. 有没有一些税务结构或有利的中间税务管辖区，是对外商直接投资日本尤其有用的？

一般而言，不存在对日本的外商直接投资特别有用的特定税收结构或有利的中间税收司法管辖区。但是，某些司法管辖区域(如新加坡和香港)与日本签订了优惠税收协定，在符合特定要求时可以适用。

2. 企业所得税和股息预提税的适用税率是多少？

2016财年，日本有效的标准公司税率是29.97%，三年内下降大约7%(2013财年税率为37.00%)。计划在2018财年进一步下降至29.74%。

在日本无常设机构的非日本公司股东须就其获得的日本公司股息缴纳预提税。若无适用的税收协定，日本的预提税税率一般为20.42%。关于中日税收协定的情况见四5。

3. 政府是否有实施任何外国直接投资税务激励计划？

是的，国家和地方政府提供具有吸引力的税收激励措施来推动外商对日本的直接投资,包括监管豁免、税收支持和财务支持。在政府指定的特别经济区(例如国家战略特区和综合特区)设立企业是享受这些激励措施的一种方式。此外，《促进日本成为亚洲商业中心法》(2012年11月起生效)为外国企业在日本设立关联公司提供特定激励措施(例如所得税减免和专利费减除)，旨在推动外国企业设立研发中心和地区总部。

4. 除了税务之外，政府对投资者还提供其他财务支持吗？如有，请加以概述。

国家和地方政府都提供其他财务支持，包括补助和低利息融资。

JETRO网站上概述了为外商直接投資提供的激励和补助计划，参见jetro.go.jp/en/invest/incentive_programs。

5. 日本与中国之间是否有任何互惠税务安排？如有，这些安排如何帮助投资者？

中日两国签订了税收协定，自1984年6月起生效。根据协定，日本公司向中国投资者支付的股息、利息和特许权使用费须缴纳中国税收。同时，该等股息、利息和特许权使用费也需要在日本缴税，但不超过股息、利息和特许权使用费总金额的10％。

第五部分：外汇管制及本地经营

1. 有什么外币或外汇限制是外国投资者需要注意的？

日本不对外国投资者实施重大的货币或外汇限制。

2. 对输入外国劳工有什么法律限制？在操作上外国投资者为股东代表、高级管理人员和员工取得外国员工签证有多困难？

除永久或长期居民以外的外国雇员在日本工作，必须持有有效工作签证。签证的类别和有效期根据雇员的身份和活动而不同。一般而言，业务经理容易取得工作签证，但普通雇员可能必须在特定领域具备高等技能或技术知识。

3. 购置商业物业有什么规定和程序？

一般而言，外国投资者可自由购买商业地产(例如房地产和设备)。值得注意的是，如果外国投资者在日本购买房产，必须在交易后20日内向日本银行报告交易。

第六部分：争议解决

1. 日本是否有和中国或其他地方签订关于投资日本常用的双边投资保护协定？

中国、日本和韩国在2012年５月签订了《中日韩关于促进、便利和保护投资的协定》，并自2014年5月起生效。协议的目的是促进三国间的投资，并建立三国间投资的法律框架。

2. 当地法院的执行和争议解决程序的效率如何？有什么特别的程序是外国投资者必须注意的？

日本法院的诉讼程序一般是可靠的，但取得判决需较长时间。许多情况下，法院会在审查证据后向争议双方提供和解方案。寻求争议解决的一方可选择调解，调解也是由法院开展的，但程序更灵活快速。日本没有类似美国的取证程序。

3. 当地法院尊重外国判决吗？可执行国际仲裁裁决吗？日本的本地判决和仲裁裁决一般能否在其他司法管辖区执行？

如果日本与判决书国家之间有相互保证，且判决书是通过满足特定要求的程序取得的，日本法院会承认在外国取得的判决书。日本和中国法院没有承认各自判决书的相互保证，因此在中国取得的判决书不能在日本执行，反之亦然。

就国际仲裁裁决而言，因为日本是《纽约公约》的缔约国，在公约成员国(包括中国)取得的仲裁裁决可以在日本执行。

石本茂彦

石本茂彦是日本森·滨田松本法律事务所（MHM）的合伙人，拥有日本(1994)和纽约州(2001) 律师执业资格。作为该所中国业务部、亚洲业务部和国际贸易业务部的核心成员，他能运用英文和中文为日本和外国客户提供法律咨询。石本茂彦毕业于东京大学 (法学学士) 和纽约大学法学院 (法学硕士)。

康石

康石自1997年起执业。2005至2009年在纽约工作，主要从事美国本国和国际并购、证券发行、私募股权投资和基金设立。2009年以来，他在亚洲代表中国和日本企业，从事涉及多个司法管辖区的结构复杂的跨境交易。

本间隆浩

本间隆浩是MHM律师事务所律师，拥有日本和纽约州律师资格。他曾在东京从事包括并购交易在内的多项业务，目前在上海从事中日投资交易。本间隆浩毕业于东京大学 (法学学士) 和哥伦比亚大学 (法学硕士)，能够熟练运用中日英三国语言。

森规光

森规光是MHM律师事务所律师，拥有日本和纽约州律师资格。他主要从事跨境并购业务，并曾于日本政府工作，负责改进日本的公司治理体系。目前，森规光律师主要在MHM上海代表办事处负责日本和中国公司之间的交易支持工作。