Japan: A Stable Economic Powerhouse in Asia

Japan boasts the world’s third-largest economy, with thriving industries in technology, manufacturing, finance, and services. As one of the most stable and developed markets in the Asia-Pacific region, Japan is highly regarded by global enterprises for its political stability, robust legal system, and high standard of living.

A Global Financial and Capital Market Hub

Tokyo is one of the world’s leading financial centers, offering:
• The Tokyo Stock Exchange (TSE), one of the largest equity markets globally
• Transparent and rigorous financial regulations under the Financial Services Agency
• A full spectrum of financial services including banking, securities, insurance, and asset management
• Supportive frameworks for foreign companies entering the Japanese market (e.g., Business Manager Visa)

A Concentration of Professional Services

Japan is home to a wide range of professional service providers, including:
• Certified public accountants and tax advisors for accounting and tax supporty
• Legal firms offering corporate legal and contract advisory services
• Consulting firms specializing in market research and strategic planning
• HR, recruitment, and training service providers

These services offer strong support for foreign companies establishing and operating in Japan.

Strategic Location and Global Connectivity

Situated at the heart of East Asia, Japan offers excellent access to China, Korea, Taiwan, and ASEAN countries. It also maintains strong international ties through:
• Free Trade Agreements (FTAs) with the U.S., EU, ASEAN, and others
• Economic Partnership Agreements (EPAs) offering tariff advantages
• Well-developed logistics infrastructure including international airports and seaports

Tax Incentives and Cost Competitiveness

• Corporate tax rate: 23.2% (with reduced rates for SMEs)
• Double taxation relief through tax treaties and foreign tax credits
• Local government subsidies and tax incentives (e.g., Tokyo, Fukuoka)
• National support programs for SMEs, including IT and innovation grants

Political Stability, Legal Integrity, and Transparency

• Parliamentary democracy with an independent judiciary
• High global rankings for rule of law and contract enforcement
• Compliance with international standards as an OECD member
• Transparent and efficient public administration with low corruption

Skilled Talent and Open Labor Market

Japan has a highly educated workforce, particularly in STEM, finance, and healthcare. The country is also expanding access to foreign professionals through:
• Highly Skilled Professional Visa (points-based system)
• Business Manager Visa for foreign entrepreneurs
• Technical Intern and Specified Skilled Worker programs for operational support

Infrastructure, Environment, and Quality of Life

• World-class public transportation (railways, airports, expressways)
• Safe, clean, and livable urban environments
• Comprehensive infrastructure for healthcare, education, and housing
• Cultural richness and high levels of life satisfaction

Japan offers a compelling environment for global businesses. At AicA, we provide expert support for companies entering the Japanese market, including accounting, tax, legal, visa, and market entry services.