Israel Japan | Business Guide | 2023

not been significant business partners, things are changing now. Since 2014 particularly, investments and business deals have not only increased in number but in value too. Tech companies in Israel are beginning to consider Japan as a significant business destination in the East. The Banking System in Japan The banking systemof Japan is comparable to that of any large economy, with many banks servicing domestic and international clients, both individual and businesses. It is a well-regulated system and the Bank of Japan is the central bank of Japan, invested with the responsibility to issue currency notes and carry out currency andmonetary control, thereby giving stability to the banking sector. Besides this, there are other banks in Japan like commercial banks (regional banks) city banks, trust banks, branches of foreign banks and new types of banks. The Legal System in Japan The Constitution of 1947 brought about sweeping changes in the structure of the Japanese Diet. Today, the House of Councillors takes the place of the old House of Peers and comprises 248 members, of which 100 councillors are elected from the nation at large while the rest of the 148 are elected as prefectural representatives. The House of Representatives comprises 465 members elected from 118 electoral districts. The elaborate legal system of Japan is quite complex to comprehend. The Constitution is at the core of the system and the legal system is enforced by laws, cabinet orders, ministerial orders and public notifications. Incorporation Procedure in Japan To set up a business in Japan, an entity has the following options. ●● Set up a representative office to carry out research and preparatory operations before doing full-fledged business. However, a representative office cannot engage in sales activities. ●● Register the appointment of a representative in Japan, a branch office, a Japanese corporation or a partnership. ●● Foreign companies wishing to do business in Japan can also establish a subsidiary company as a joint stock company, a limited liability company or something similar, as prescribed in the Japan’s Companies Act. Documents certified by authorities in the home countries of the foreign company should be submitted to the Legal Affairs Bureau of Japan for registration. A prior noticemay have to be submitted to the Bank of Japan for registration of the branch office. Venture Capital Firms in Japan The start-up culture began in the late 1990 s and has had many ups and downs. It was born with the penetration of the Internet and after 2000 it saw a decline. A few IPOs in 2003 – 2005 infused fresh energy into the startup ecosystem but the Lehmann Brothers issue put the brakes on its progress and VCs did not invest in any startups for a few years. A few more disruptions later, VCs are coming into their own in Japan. In the last 10 years, Japan is seeing a rise in serial entrepreneurs and angel investors. Although the size of investments is not as big as in the US, the new bunch of investors are signing bigger cheques. Young entrepreneurs are increasingly shunning government jobs for startups in deep tech and science-driven sectors. Japanese Investments in Israel Japanese investments in Israel reached a record $ 2 . 9 billion in 2021 and continue to flow in. There are more than 18 Japanese VC firms in Israel and around 100 Japanese firms having a fixed presence in Israel. Japanese institutional investors increased their engagement with local counterparts and Israeli firms even during the covid- 19 pandemic. Japanese investments in Israel have grown by a record 195 per cent surpassing overall investments of 146 per cent from 2020 to 2021 . Top Law Firms in Japan 日本の大手法律事務所 Nishimura & Asahi | 西村あさひ法律事務所 Nagashima Ohno and Tsunematsu | 長島・大野・常松法律事務所 Anderson Mori & Tomotsune | アンダーソン・毛利・友常法律事務所 Mori Hamada and Matsumoto | 森・濱田松本法律事務所 TMI Associates | TMI 総合法律事務所 Atsumi & Sakai | 渥美坂井法律事務所 City - Yuwa Partners | シティユーワ法律事務所 Ushijima & Partners | 牛島総合法律事務所 Oh - Ebashi LPC & Partners | 弁護士法人大江橋法律事務所 ( Source , 出典: The Legal 500) Israel-Japan > Business Guide > 2023 28 > Business Services > Sector Review