FEFTA has kept changing. On January 7, 2026, Council on Customs, Tariff, Foreign Exchange and other Transactions at Japanese Ministry of Finance submitted a report to the Japanese ministers to opine that amendment of Foreign Direct Investment Screening Regine is necessary. On March 17, 2026, the amendment bill was submitted to the House of Representative already. The amendment is intended to deal with the increasing number of pre-notification filings, clarifying risk mitigation measures for national securities, and changing of alternate parent companies after investment. In this article, I would like to focus on a couple of topics which might be of interest for foreign investors to Japanese companies. Key Takeaways […]
By Shingo Hattori — Founder & Managing Partner, Hattori LawTel: +81 3 6447 5586 Japan’s Foreign Exchange and Foreign Trade Act (FEFTA) imposes strict reporting rules on foreign investors. Even small share purchases can trigger filings: for example, acquiring as little as 1% of a listed company now requires pre‑notification. Foreign investment in certain “sensitive” industries (e.g. defense, energy, high-tech) mandates prior government approval, and post-closing notification is required for non-residents buying land (within 45 days). The 2022 Act on the Review and Regulation of the Use of Real Estate Surrounding Important Facilities and on Remote Territorial Islands (“REIRA”)adds a location-based review: any purchase of real estate within ~1,000 meters of […]
Foreign investors may generally purchase shares in Japanese companies without significant difficulty. However, the applicable regulatory requirements depend on the nature of the investor, the business sector of the target company, and the purpose of the investment. This overview summarizes the main Foreign Exchange and Foreign Trade Act (“FEFTA”) categories relevant to investment funds whose investments are purely financial and that have no affiliation with foreign governments or sanctioned countries. As a general rule, if the target company falls within Category 2, 3, or 4 below, a prior notification is required. Categories of the Target Company ① Companies conducting business activities only in non-designated business sectors (subject to post-investment report […]
Japan is a common target for cyber-enabled fraud in the Asia-Pacific region. For multinational groups operating subsidiaries in Japan, recurring scenarios include business email compromise, spoofed vendor change requests, fraudulent wire-transfer instructions, and unauthorized access to online banking platforms. Incidents frequently involve Japanese-language communications, multiple internal approvers, and complex transaction flows across time zones. Even where machine translation or AI tools assist with triage, boards and auditors typically expect a structured fact-finding process that produces a clear audit trail and a defensible narrative of what occurred, when it occurred, and which controls failed or were bypassed. Immediate Priorities: Preserve Evidence and Stabilize Decision-Making A common first step is to initiate […]
1. Why This Matters for Australian General Counsel In recent years, an increasing number of Australian companies have been acquiring Japanese companies or Japanese real estate assets. One key driver is corporate strategy under the weak Japanese yen, which has made Japan an attractive investment destination. From a legal perspective, these transactions often qualify as mergers and acquisitions, even when they appear to be straightforward real estate purchases. For example, acquiring shares of the single purpose company which owns a Japanese real property typically constitutes an M&A transaction under Japanese law. For Australian General Counsel, Japan presents a unique challenge. The legal system, market structure, and availability of legal professionals […]
Overview Many US companies establish their Asia-Pacific headquarters (APAC HQs) in Singapore and place their General Counsel or regional legal team there, with responsibility for overseeing Japan operations. This structure functions effectively for regional governance and compliance. However, when a legal issue arises in Japan—particularly debt collection against a Japanese counterparty—it is essential to understand how the Japanese legal system operates in practice. This article provides a concise, practitioner-oriented overview of Japanese debt collection procedures, focusing on key considerations for in-house and external counsel based in Singapore. A typical scenario is straightforward: a Japanese retailer or distributor fails to pay the contract price. The legal response, however, requires a jurisdiction-specific […]
We are pleased to announce that our firm will be Lanyard sponsor of the “ALB Japan In-House Legal Summit 2026,” hosted by Asian Legal Business (ALB). This summit will be held on Wednesday, April 15, 2026, at The Hilton Tokyo. It is an event designed for corporate legal professionals, offering a wide range of information on the latest legal trends and practical insights. Through presentations and panel discussions featuring domestic and international experts, it will provide a valuable opportunity to exchange views on the challenges and solutions facing corporate legal departments going forward. As a sponsoring firm, we sincerely look forward to your participation. For details and registration information, please […]
Strategy and dialogue culminate in mutual trust, as leaders shake hands in Singapore, preserving partnership and securing a sustainable future together.
By Shingo Hattori — Founder & Managing Partner, Hattori LawTel: +81 3 6447 5586 Overview Even though there are various Acts regarding labor matters in Japan, Labor Standards Act is the fundamental one. Japanese Labor Standards Act has a base on Japanese Constitutions Article 27.2 “Standards for wages, hours, rest and other working conditions shall be fixed by law.” Labor Standards Act stipulates minimum standards of work conditions to protect workers from their position regarding economical viewpoints. Labor Standards Act Article 1.1 stipulates the very point as “Working conditions must be conditions meeting the needs that are to be met in order for worker to live a life worthy of a […]
Position Attorney (Licensed in Japan or another jurisdiction) PQE 2 or more Job Description Our firm handles a wide range of corporate legal matters, including cross-border transactions and international legal issues. Depending on your interests and areas of expertise, you will be assigned to various legal tasks across multiple practice areas. Language Skills English (Native-level proficiency) Employment Type Full-time Eligibility The candidate must meet the legal requirements for working in Japan. Working Hours 9:30–17:30 (1-hour break) *Flexible hours, remote work, and shortened hours available upon request. Work Location Roppongi Hills North Tower 3F, 6-2-31 Roppongi, Minato-ku, Tokyo Compensation Compensation will be determined based on experience and previous salary, following consultation. […]
By Shingo Hattori — Founder & Managing Partner, Hattori LawTel: +81 3 6447 5586 Japan’s Foreign Exchange and Foreign Trade Act (FEFTA) imposes strict reporting rules on foreign investors. Even small share purchases can trigger filings: for example, acquiring as little as 1% of a listed company now requires pre‑notification. Foreign investment in certain “sensitive” industries (e.g. defense, energy, high-tech) mandates prior government approval, and post-closing notification is required for non-residents buying land (within 45 days). The 2022 Act on the Review and Regulation of the Use of Real Estate Surrounding Important Facilities and on Remote Territorial Islands (“REIRA”)adds a location-based review: any purchase of real estate within ~1,000 meters of […]
By Shingo Hattori — Founder & Managing Partner, Hattori LawTel: +81 3 6447 5586 Successful international deals with Japanese partners hinge on both legal clarity and cultural sensitivity. Parties should prepare agendas in advance and respect formalities: for instance, Japanese counterparts appreciate receiving a written meeting agenda and a polite exchange of business cards (“meishi” in Japanese) using both hands. Contracts must adhere to Japanese formalities – many Japanese firms execute key agreements with an official corporate seal (“inkan” in Japanese) rather than a signature, which legally binds the entity. Legal practitioners should also plan for language and forum issues: Japan’s Arbitration Act follows the UNCITRAL Model Law, enabling arbitration in […]