Helping US Businesses Leverage Opportunities in Japan

With over a decade of experience, Tricor is able to navigate complex processes and guide our US clients through the challenges of incorporation and strategic planning to tap into the burgeoning opportunities in Japan.

Expanding to Japan in the Post-COVID Era

While Japan, the world’s third-largest economy, surprisingly grew 12.7% in Q4 of 20201, the government has unveiled a US$1 trillion stimulus to protect jobs because of the impact of the COVID-19 pandemic. After 30 years of sluggish growth, Japan’s Nikkei index regained a key threshold, closing above 30,000 on rising expectations for a rebound in corporate earnings and economic growth.2 Energy, healthcare and industrial sectors leading the gains.

As Japan faces various social issues including a declining birth-rate and an aging population and regional disparities, there is a strong need for digital innovation and diverse business sectors. While opportunities abound, laws and various procedures related to setting up a business in Japan can be complex for foreign firms. Tricor’s team of experts partner with firms to simplify business expansion – from incorporation and strategic planning in Japan to scaling across Asia.

Market Content

Industries Emerging as Economic Drivers in Japan

Banking & Financial

Japan is home to some of the largest banks, measured by deposits, in the world. US firms have a strong presence and, according to the International Bankers Association, “business as usual” has prevailed despite disruptions. Many investors are looking to capitalize on emerging opportunities to add value to financial services in the digital age. Bolstered by government incentives, high consumer demand and an innovative culture, Tokyo is considered an attractive FinTech hub. However, many foreign firms struggle with complex procedures such as obtaining regulatory licenses and financial reporting.

Technology

The government has placed a distinct priority on digital transformation, now preparing to establish a Digital Agency “which can function as a powerful control tower, with highly talented people gathering from both the public and private sectors, to lead the digitalization of the society as a whole.” Japan continues to be a world leader in the Internet of Things (IoT), with not only large companies but also entrepreneurs, startups and smaller ventures innovating to unlock the business value of connected devices.

Industrial & Manufacturing

Japan’s manufacturing and industrial footprint is very diversified, boasting the third highest output in the world. Robots were adopted much earlier in Japan than in other developed countries. Studies have shown that the future of automation will likely see humans working alongside robots, rather than being replaced by them, which could in fact expand employment and increase wages.

Medicine & Healthcare

The Japanese pharmaceutical industry is the third largest in the world after the US and China.3 An aging population and extended life expectancy have increased the demand for medical treatments and will continue to be key drivers for future innovation. Japan is also paving the way by leveraging digital technologies to support healthcare professionals.

Tourism

Japan is expected to be the number one travel destination for tourists after the pandemic ends. Japan ranked 4th out of 141 countries overall, which was the highest in Asia.4 It scored highly in the areas of health and hygiene, safety and security, and cultural resources and business travel.

Thought Leadership Content

How Tricor Helps US Businesses Navigate Complexity in Japan

Tricor Japan specializes in helping foreign enterprises set up, expand and optimize business operations in Japan. We provide a range of services, including:

  • Accounting for Japanese entities and special purpose companies (SPCs)
  • Financial reporting in US GAAP, IFRS, J-GAAP and banking / treasury services
  • Tax compliance and inbound advisory services
  • Statutory payroll, benefits and HR advisory services
  • Corporate secretarial services (entity formation, nominee services, company secretarial support, liquidation management, immigration support/visa application support)

Establishing a business in Japan is complicated and the process may require multiple private sectors and practitioners to be involved in the incorporation as well as post-incorporation phases. With over a decade of experience, Tricor Japan is able to simplify these complex processes and guide our clients through these challenges. We have supported over 750 multinational companies to successfully set up in Japan.

Customer Success Stories

Tricor Japan’s Client Segmentation by Industry

US-Japan Chart 4

*Based on Tricor’s Top 800 Clients

We offer the necessary support companies need to maintain full compliance in Japan. In addition to our compliance services, we offer serviced office spaces for companies looking for a hassle-free office space solution and outsourced IT support for those companies that do not want to hire an in-house IT resource. Tricor Japan maintain ISO and Privacy Mark certifications, audited business continuity plans (BCP) and IT backups are located both on-site and remotely.

Tricor Japan also has strong relationships with a network of trusted firms handling Recruitment, Litigation, Audit and Transfer Pricing. Whether you are looking to set up shop or streamline and expand your current operations, Tricor is at your service.

References

  1. ‘Japan GDP beats forecasts with 12.7% annualized rise for Q4’, Nikkei Asia, Feb. 15, 2021 https://asia.nikkei.com/Economy/Japan-GDP-beats-forecasts-with-12.7-annualized-rise-for-Q4
  2. ‘Japan's Nikkei closes above 30,000 on earnings rebound, economy growth hopes’, Stanley White, Reuters, Feb. 15, 2021 https://www.reuters.com/article/us-japan-stocks-idUSKBN2AF06I
  3. Pharmaceutical Industry in Japan - Statistics & Facts, Statista Research Department, 2020 https://www.statista.com/topics/4544/pharmaceutical-industry-in-japan
  4. The Travel and Tourism Competitiveness Report, World Economic Forum, 2019 http://www3.weforum.org/docs/WEF_TTCR_2019.pdf

Contact Us

Give Us A Call

Tricor Japan

Oak Minami Azabu Building 2F,
3-chōme-19-23, Minami Azabu Minato-ku, Tokyo 106-0047, Japan

(81) 3 4580 2700

(81) 3 4580 2701

info@jp.tricorglobal.com