What benefits are there for foreign or foreign affiliated companies newly establishing business in the Tokyo’s Special Economic Zones?
Those who establish their headquarters/R&D center within Tokyo’s Special Zone for Asian Headquarters can receive various support and incentives such as free-consulting service, information on offices that can be rented at reduced rates, preferential tax treatment and business and living support by the Business Development Center Tokyo. In the Tokyo Area National Strategic Special Zone, companies can receive services such as support facilitating the prompt completion of various filing procedures required when starting a business, provided by the Tokyo One-Stop Business Establishment Center, and help for better understanding of Japan’s employment rules and consultation for smooth development of business provided by the Tokyo Employment Consultation Center.
What are the procedures that need to be taken to establish a Japanese subsidiary in the Tokyo’s Special Economic Zones?
At the Business Development Center TOKYO, one-stop business consultation desk for foreign companies and entrepreneurs establishing business in Tokyo, bilingual staff will provide support regarding administrative procedures for incorporation and offer business match-up support so that companies can smoothly expand business. In addition, at the Tokyo One-Stop Business Establishment Center, with regard to applications needed when incorporating a company and launching operations, and application for the issuance of a certificate of eligibility for status of residence, administrative procedure consultants dispatched by the relevant authorities of the national government and the Tokyo Metropolitan Government will provide support for procedures such as filling out applications and other documents, and accepting their submission.
I have heard that Japan imposes high taxes on corporations. Are there any tax incentives for foreign companies setting up business within Tokyo’s Special Zone for Asian Headquarters?
The current effective corporate tax rate in Japan is 33.1%. However, tax incentives shall apply to foreign companies newly establishing their regional headquarters or R&D centers within the Special Zone areas. Such incentives shall reduce the effective corporate tax rate to 24.7% .
*Tax incentives shall only apply for those companies fulfilling certain conditions. The Japanese government has announced its policy to reduce the effective corporate tax rate in stages to a range between 20 – 30%.
I would like to apply for the Asian Headquarters subsidy program. What are the procedures for application?
Please contact the TMG before determining the plan to establish an office. Prior consultation on the operation’s business plans and other matters is required. After establishment of operations, apply for the subsidy within the same fiscal year. Note: Certain conditions are required for eligibility. Please see the Tokyo’s Special Economic Zones website for details.
Is it possible to receive both the benefits of the Special Zone for Asian Headquarters and the Tokyo Area National Strategic Special Zone?
Though these special economic zones have been designated under different laws, the areas of the Special Zone for Asian Headquarters are located within the Tokyo Area National Strategic Special Zone. Thus companies setting up business in Tokyo’s Special Zone for Asian Headquarters are also eligible to receive benefits available to companies setting up operations in the Tokyo Area National Strategic Special Zone if those companies fulfill certain conditions based on the National Strategic Special Zones Act.
I am looking for Japanese-English bilinguals in Tokyo. Is any support given for hiring those people?
The Business Development Center Tokyo will help you to find such people. Furthermore, in order to meet the increasing corporate needs for global human resources and with a focus on the Tokyo 2020 Olympics and Paralympic Games as well, the TMG is bolstering initiatives to raise globally competent individuals.
In the Special Economic Zones, are measures taken to ensure business continuity in the event of disasters?
Special Economic Zone areas have quake-resistant, high-performance office buildings with emergency power systems to ensure that your business can continue to operate even in the event of a major disaster. Many urban development projects to provide such high-performance office buildings are also underway.
If my family accompanies me to Japan, I am concerned about their lives here due to language issues. Is there support offered to help family members live in Tokyo with peace-of-mind?
The TMG has expanded both administrative services and information provided in English in order to support foreign businesspersons and their families and ensure that they can live comfortably in a manner similar to that of their home countries. For example, the Business Development Center Tokyo offers one-stop services to provide information related to daily life such as international schools and hospitals with staff who can speak English. Such living information is also provided at Tokyo’s Special Economic Zone website.