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Business Guide

UK-Japan

Hiroshi Suzuki

Ambassador of Japan to the UK Foreword

Corin Robertson

HM Ambassador-Designate to Japan Foreword

Richard Lyle

President of the British Chamber of Commerce Japan Introduction

Farah London

bizNis International

Building bridges between the United Kingdom and Japan

Timothy Connor

Synnovate

Market Entry into Japan

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Business Guide

UK-Japan

Contents 09

Hiroshi Suzuki Ambassador of Japan to the UK – Foreword

Timothy Connor Synnovate – Market Entry into Japan

Corin Robertson HM Ambassador-Designate to Japan – Foreword

Investing in Japan

Japan's New Drive to Attract Foreign Investment

Help Available

Embassy of Japan in the UK British Embassy Tokyo British Chamber of Commerce in Japan (BCCJ) JETRO: Japan External Trade Organization bizNis International Department for Business and Trade Events and Trade Shows

Richard Lyle President of the British Chamber of Commerce Japan – Introduction Farah London bizNis International – Building bridges between the United Kingdom and Japan

Why Japan?

Overview Geography Government Overview Economic Overview Bilateral, Strategic and Free Trade Agreements Business and Human Rights UK and Japan Trade

33 36

Japan Market Entry www.UK-Japan.business

54 62

Getting here and advice about your stay

64 65

Entry Requirements Flights and Airports Connectivity Health Safety and Security

66 67

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Contents 68 69 70

Crime Laws and Cultural Differences Transport risks

Extreme Weather and Natural Disasters Travel Insurance

98 99 101 103 106

Japan’s Education System

108 109

Sector-Specific Opportunities

112

Advanced Manufacturing Automotive Industry Clean Energy and Solutions Dual-Use Technologies and Defence Sector Fashion Financial and Professional Services Food and Drink Healthcare and Life Sciences Media Technology Third Country Projects

89 90

91 96

Preparing to Export

Research and Considerations Export Plan Start Up Considerations Financial Considerations Legal Considerations Copyright Taxation Customs and Documentation Shipping Goods UK Export Finance Business Etiquette, Language and Culture

115 Business Culture Business Etiquette Business Attire Language Business Hours 116

What are the Challenges?

118 Challenges 119 Bribery and Corruption Intellectual Property Protective Security Advice 120 Useful Links 130 Contact Details 135 Quick Facts

Supporting Organisations and Market Experts

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Hiroshi Suzuki, Ambassador of Japan to the UK Welcome to this 2nd Edition of the Guide to Doing Business in Japan. I hope this 2nd Edition will be useful in exploring new business opportunities in Japan.

Japan and the UK have much in common. We both uphold fundamental values i.e. freedom, democracy, human rights, and the rule of law. As members of the G7, we have shared strategic interests such as maintaining a rule-based international order. As island nations, we both champion free and open trade. Japan and the UK have been deepening our ties through trade and investment for more than 150 years, and that relationship is still going from strength to strength. In 2021, the Japan-UK Comprehensive Economic Partnership Agreement (CEPA) entered into force. And in 2024, the UK joined the Comprehensive and Progressive Agreement for TransPacific Partnership (CPTPP). With the help of these agreements, total trade in goods between Japan and the UK in yen terms reached ¥3.28 trillion (£16.72 billion) in 2025 – an impressive increase of approximately 80% compared to five years earlier. We are witnessing similarly encouraging trends in investment as well. Japanese official statistics show that foreign direct investment (FDI) from Japan to the UK increased by 40% between 2020 and 2024, reaching ¥19.96 trillion (£103.20 billion), while FDI from the UK to Japan increased by 53% to ¥2.33 trillion (£12.03 billion) over the same period. These figures speak for themselves and are signs of strong confidence in the stability and promise of the Japan-UK economic relationship.

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There is always room for further growth – particularly in the field of investment. In June 2025, the Government of Japan set out in its Basic Policy on Economic and Fiscal Management and Reform 2025 an ambitious target of achieving a total of ¥120 trillion (£611.60 billion) in FDI by 2030, up from the previous target of ¥100 trillion (£509.70 billion). The State Minister of the Cabinet Office of Japan signed a Memorandum of Cooperation with the UK Minister for Investment in July 2025, to co-operate to encourage British investment into Japan. The message to British businesses is clear: Japan’s doors are wide open, and you are all very welcome. Our two countries have a trusting relationship, which is invaluable in a world that is drastically changing. Our partnership is firmly grounded on the Enhanced Global Strategic Partnership under the 2023 Hiroshima Accord, and the Japan-UK Industrial Strategy Partnership announced in March 2025. As His Majesty the Emperor expressed during His State Visit to the UK in June 2024, Japan and the UK are “friends like no other”. There is immense potential to what our two countries can achieve together by building on this partnership. I look forward with great expectation to promoting Japan–UK co-operation in key areas such as advanced technologies and economic security reach new heights. You will find this Guide a useful introduction to doing business in Japan. If you are thinking of exporting or investing abroad, there is no need to look further than Japan! 9

Foreword from Corin Robertson, HM Ambassador-Designate to Japan

The UK-Japan relationship is stronger than ever. Japan is one of the UK’s most important economic partners, and the relationship between our two countries has never been stronger. At the start of 2026, the value of UK-Japan trade was £35 billion. As close strategic and economic partners, our two countries share a deep commitment to free and open trade, innovation, and long term collaboration. Against this backdrop, Japan remains a highly attractive and sophisticated market for UK companies. It offers scale, stability, and world leading expertise across the UK's Modern Industrial Strategy priority sectors, ranging from advanced manufacturing and clean energy to digital, life sciences, and professional services. UK businesses are already making a strong contribution to Japan’s economy, and many more are well placed to succeed here. This UK–Japan Doing Business Guide is a valuable resource for UK companies considering exporting to, investing in, or partnering with Japan. It provides clear, practical insight into the commercial environment, regulatory landscape, and cultural considerations that are essential for success here, and complements the support being

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provided to UK businesses by the Department for Business, Innovation, Science and Trade and other partners. Many UK businesses, from global leaders to first time exporters, service providers and tech scale-ups, are already thriving in Japan. With the right preparation, expertise, and local understanding, there is considerable scope for others to do the same. I commend this guide as a trusted companion for companies exploring the Japanese market and encourage readers to make full use of the support available through the UK–Japan business ecosystem. I wish all readers every success in their journey to do business in Japan. Corin Robertson, HM Ambassador-Designate to Japan

Introduction from Richard Lyle, President of the British Chamber of Commerce Japan

For British companies seeking sustained international growth, Japan remains one of the world’s most important strategic markets. As the world’s fourth largest economy and a global leader in technology and advanced manufacturing, Japan offers depth, scale, and resilience that few other markets can match. It is also a market defined by long term relationships, reliability, and trust. While it is sometimes perceived as complex or difficult to enter, these characteristics are precisely what underpin its stability and commercial value. This guide is intended to set out those realities clearly and practically.

Japan is not a market driven by rapid entry or short term returns. It rewards careful preparation, consistency, and long term commitment. Companies that succeed here do so by investing time and resources, building credibility steadily, and aligning themselves with Japanese expectations of quality and reliability. A proven track record in Japan is widely respected internationally and often enhances a company’s standing in other global markets, making it easier to trade in other markets. The bilateral relationship between the UK and Japan is strong and continues to deepen. The UK–Japan Comprehensive Economic Partnership Agreement (CEPA) provides a robust framework for trade and investment, supported by shared values around the rule of law, innovation, quality, and sustainability. This has now been enhanced through the UK’s accession to CPTTP, and Japan was a strong supporter of the UK joining and represents a significant amount of the overall bloc. The UK and Japan have signed other agreements to deepen trade, such as the Global Combat Air Programme, and in areas of technology, such as the UK–Japan Digital Partnership. In Japan, long-term relationships are integral to business. Decision making is typically consensus based and risk-averse, with a strong emphasis on continuity and accountability. Trust is established progressively through consistent

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engagement and delivery over time. This often means that initial sales start small but grow over time as any issues are ironed out and you become a trusted partner. But importantly, this can lead to sustained revenues, and Japan respects the rule of law. Japan is a mature economy, so opportunities lie across the board, but often there may be local competitors to contend with – so anything you offer should be seen to “move the needle”, and Japan especially needs help in decarbonisation, digitalisation and healthcare as the country deals with demographic change – an ageing and declining population. Given this, globally competitive sectors such as automotive, electronics, life sciences, energy, and financial services are undergoing significant transformation and looking for innovation and are increasingly open to new ideas, products and services. There is a persistent misconception that Japan is “closed” to foreign business. It is not. Japan is open, but it is highly selective. Expectations are high regarding quality, compliance, reliability, and post sales support. Japanese customers and partners look for suppliers who demonstrate technical credibility, operational consistency, and a genuine long term commitment to the market, including a willingness to localise products, communication, and support.

As President of the British Chamber of Commerce in Japan, I encourage companies to view Japan not as a short term opportunity, but as a strategic priority. The investment required—in time, resources, and leadership attention— can be considerable. For those prepared to make that commitment, however, Japan offers long-term and reliable revenue streams. The British Chamber of Commerce in Japan exists to support British businesses operating in this environment. As one of the largest and most active foreign chambers in the country, the BCCJ represents companies ranging from startups and SMEs to major multinationals across all key sectors. Our role is to help members navigate the Japanese market with clarity, credibility, and confidence. We provide practical support through introductions, market insight, policy advocacy, and platforms for shared experience. Equally important, we offer access to a community of peers with firsthand experience of building and sustaining businesses in Japan. That collective knowledge is one of our most valuable assets. We trust this guide will serve as a practical and credible starting point. The BCCJ stands ready to support you as you assess opportunities, establish a presence, and grow your business in Japan. We look forward to welcoming you into our community and to supporting the continued success of British business here.

The United Kingdom and Japan share one of the most dynamic and enduring economic partnerships in the world today. As two globally minded, innovation-driven economies, the opportunities for collaboration across sectors, regions, and emerging industries have never been greater. For UK companies considering Japan, the market offers both significant potential and unique complexity. Success here requires not only a strong commercial proposition, but also an understanding of the local business environment, regulatory landscape, and cultural context that underpin long-term relationships. This is where the British Chamber of Commerce in Japan (BCCJ) plays a vital role. Since 1948, the BCCJ has supported companies of all sizes at every stage of their Japan journey, from initial market entry through to expansion and longterm growth. As a platform connecting businesses, policymakers, and industry leaders, we provide our members with access to networks, insights, and opportunities that are critical to navigating and succeeding in this market. Today, we are seeing renewed momentum in UK-Japan engagement, underpinned by frameworks such as the UK-Japan Free Trade Agreement and the Comprehensive and Progressive Agreement for TransPacific Partnership (CPTPP), as well as increasing alignment across key areas like digital innovation, sustainability, life sciences, advanced manufacturing, and women empowerment. Alongside this, Japan’s growing regional economies, including Osaka and the wider Kansai area, are presenting new and exciting avenues for investment and collaboration.

The Doing Business in Japan Guide is a valuable resource for organisations looking to better understand and access this market. We encourage UK businesses to approach Japan with curiosity, commitment, and a long-term perspective, and to leverage the networks and support available to them. Whether you are exploring the market for the first time or expanding an existing presence, the BCCJ stands ready to support your journey. We look forward to welcoming more UK companies to Japan and to supporting their success as part of a growing and dynamic UK-Japan business community.

The British Chamber of Commerce in Japan WORK STYLING Midtown Tower 18F 9-7-1 Akasaka Minato-ku, Tokyo, 107-6218 Google Maps: https://goo.gl/maps/ UhM6E3dnBpNdPAFu8 info@bccjapan.com 03-4560-4190 bccjapan.com

The experience went far beyond attending an international summit. It provided an opportunity to introduce business leaders to Japan, build new relationships and explore discussions surrounding sustainability, investment, innovation and the future of the blue economy.

Building Bridges Between the United Kingdom and Japan It is a great privilege to contribute to this guide celebrating the relationship between the United Kingdom and Japan, two nations connected by a long history of friendship, mutual respect and increasingly important economic ties. My own relationship with Japan has become both professional and personal. Every visit has strengthened my admiration for the country and its remarkable ability to combine centuries of tradition with extraordinary innovation, its commitment to excellence, and, perhaps most importantly, the value placed upon trust, integrity and long-term relationships. As Founder and CEO of bizNis International, my work has taken me across the world, connecting governments, businesses, investors and international markets. Yet Japan has become a particularly important market for me, with my work spanning trade, investment, international delegations and engagement with Japanese capital markets. Bringing the World to Japan In March 2025, I had the pleasure of leading a global business delegation to Japan, including participants from the United Kingdom and other international markets, to attend the World Ocean Summit in Tokyo.

www.UK-Japan.business

You can read reports, analyse economic data and conduct virtual meetings, but there is no substitute for being present, meeting people, understanding the culture and seeing the opportunities for yourself. I returned to Tokyo in June 2025, when bizNis International supported an official government delegation from the Emirate of Sharjah. As part of that programme, we organised a dedicated investment and business forum in Tokyo, bringing together government representatives, businesses and investors to facilitate dialogue and create new international relationships. Although global in its reach, that experience reinforced my belief in Japan's exceptional ability to build meaningful international partnerships and in the considerable opportunity for the United Kingdom and Japan to deepen their own economic relationship. A Relationship Built on Trust There is something particularly complementary about Britain and Japan. Both nations respect their history and traditions while continuously looking towards the future. Both possess globally recognised institutions, sophisticated financial markets, world-class universities, strong research capabilities and economies built around innovation, expertise and international engagement. There is also a shared understanding that relationships matter. Having worked across numerous international markets, I have learned that successful business rarely begins with a transaction. It begins with trust.

This is particularly important in Japan. British companies looking towards Japan should be prepared to invest time in understanding the market, building trusted relationships and demonstrating a genuine long-term commitment. Those prepared to do so will discover an extraordinarily sophisticated economy with tremendous opportunities. Japan should not simply be viewed as an export destination. It is a strategic partner, a major source of institutional capital, technology and innovation, and an important gateway into the wider AsiaPacific region. Equally, the United Kingdom offers Japanese companies and investors access to one of the world's leading international financial centres, exceptional professional services, globally recognised universities and research institutions, a dynamic technology ecosystem and a diverse pipeline of investment opportunities. Connecting Japanese Capital with Opportunity An increasingly important part of my own work involves engagement with Japanese capital markets and investors, promoting credible international investment opportunities and connecting businesses, projects and institutions with potential sources of capital. I would particularly like to see greater flows of investment and collaboration between Japan and the United Kingdom. British innovation combined with Japanese capital, technology and long-term strategic thinking represents a powerful proposition. The UK is home to extraordinary innovation across many of these areas. Japan brings not only capital but world-leading industrial expertise and technological capability.

The potential lies in bringing those strengths together. Creating the Right Connections This is also where bizNis International plays an important role. Our work is centred on building bridges between the public and private sectors, connecting governments, businesses, investors and international markets through strategic introductions, trade and investment delegations, market engagement and international business development. Whether helping a government present opportunities to international investors or supporting a company seeking partners and market access, our objective remains the same: to bring the right people together and create relationships from which meaningful opportunities can develop. Looking Towards the Future I believe the next chapter of UK–Japan relations presents tremendous possibilities. My experiences there have certainly reinforced something I have believed throughout my career, the strongest international partnerships are not created overnight. They are built through repeated engagement, mutual respect and a willingness to understand one another. I look forward to continuing to build bridges between our two nations, introducing more British businesses to Japan and bringing Japanese investors and businesses closer to opportunities in the United Kingdom.

Farah London CEO of bizNis International 19

The Japan External Trade Organisation (JETRO) is a government-related organisation that works to promote mutual trade and investment between Japan and the rest of the world. Invest Japan The Invest Japan programme is a comprehensive initiative designed to attract and support international firms, from startups to established corporations, as they enter or expand in the Japanese market. It plays a vital role in fostering innovation, revitalising regions, and driving sustainable growth via its hands-on support menu. Tailored Support

Originally established in 1958 to promote Japanese exports abroad, JETRO’s core focus in the 21st century has shifted toward promoting foreign direct investment into Japan and helping small to medium size Japanese firms maximize their global export potential. Currently, JETRO operates under its Sixth Medium-Term Plan (FY2023–2026), which prioritises the formation and strengthening of a startup ecosystem where capital, technology, and talent circulate seamlessly between Japan and international markets. As part of this initiative, JETRO actively facilitates innovation and new business creation through two flagship programmes.

JETRO offers tailored support for international companies seeking to establish or expand their operations in Japan, including representative offices, branches, subsidiaries, R&D centres, and manufacturing facilities. Invest Japan programme assists businesses through every stage of the journey, from initial market research to the final setup process, ensuring a seamless transition into the Japanese market. Through individual consultations with JETRO’s dedicated staff and market experts, we provide information on the Japanese market, industries, regulations, and legal systems. This hands-on guidance is designed to help firms overcome barriers and focus on growth from the outset. Invest Japan Business Support Centres (IBSC) A cornerstone of the programme is JETRO’s network of IBSCs in Tokyo, Yokohama, Nagoya, Osaka, Kobe, and Fukuoka. These centres act as one-stop facilities offering individual consultation and complimentary office space for up to 50 business days.

Government and Other Networks JETRO can support your business in Japan through our broad network, introducing the government and related ministries and agencies, local governments, and business partners, such as Japanese companies and universities interested in partnerships with foreign-affiliated companies. J-Bridge J-Bridge is a business platform that creates new opportunities through collaboration between Japanese and overseas companies /academia. J-Bridge supports partnerships that accelerate Japan within the digital, sustainability and the life sciences sector. Key Services and Activities JETRO provides business matching, coordinated through JETRO’s online platform. Registered overseas companies /academia can connect with Japanese companies in a targeted, efficient process. 1. Online Profiles: JETRO creates business summary profiles for each overseas company/institute, highlighting technologies, focus areas, and collaboration needs. These profiles give Japanese companies access to view your company information and facilitate initial contact. 2. Business Meetings: JETRO proactively arranges tailored meetings between overseas and Japanese companies, enabling early alignment and opportunities for joint development, licensing, or investment.

3. J-Bridge Global: Overseas companies can access and view Japanese corporations seeking collaboration directly via the platform, making the process flexible and user driven. 4. Events and Networking: J-Bridge also organises reverse pitching sessions, pitching sessions and networking events, helping participants exchange insights, showcase technologies, and explore partnership opportunities.

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Business Guide

UK-Japan

About this guide

This guide aims to provide a route map of the way ahead, together with signposts to other sources of help. The main objective of this Business Guide is to provide you with basic knowledge about Japan, including an overview of its economy, business culture and potential opportunities, and to identify the main issues associated with initial research, market entry, risk management and cultural and language issues. We do not pretend to provide all the answers in the guide, but novice exporters in particular will find it a useful starting point. Further assistance is available from the Department for Business & Trade (DBT) team in Japan and in the UK. Full contact details are available throughout this guide.

This guide is available in four formats:

UK-Japan Business Guide Team

• Our website: www.UK-Japan.business

Project Director: Craig Smith Managing Editor: Megan Collingwood Sales Manager: Ian Tonks Creative Manager: Paul King / Claire King Creative Consultants: Twistedgifted www.twistedgifted.com

• This full colour hard-copy brochure • PDF download* • E-flipbook* *(Please see our website for more details)

© 2026 Doing Business Group Ltd. All rights reserved. UK–Japan Business Guide, published in the United Kingdom by Doing Business Group Ltd. Unless otherwise stated, all content is © 2026 Doing Business Group Ltd. All website links and QR codes were correct as of September 2026. This publication contains public sector information licensed under the Open Government Licence v3.0.

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UK-Japan

Supporting, Facilitating, and Promoting International Trade for Over 25 Years!

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BUSINESS G L U A

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The Doing Business Group has proudly partnered with British and foreign government departments, embassies, high commissions, institutions, and international chambers of commerce worldwide. We specialise in helping UK-based companies succeed in overseas markets while promoting inward investment into the UK enterprise economy.

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Export support services We provide tailored export promotion services designed to help UK companies expand their reach, trade successfully, and invest in lucrative overseas markets. Our extensive network of international trade and markets expert partners oﬀer comprehensive support at every stage of the export journey. This includes in-depth market research to help businesses identify opportunities and understand the competitive landscape. We also provide dedicated business support, ensuring that companies receive guidance on navigating international trade complexities.

Business Guide

Additionally, our partner services cover financial and legal assistance, helping businesses manage regulatory compliance, financial planning, and risk mitigation when entering new markets. Our networks expertise extends to sales and marketing strategies, equipping companies with the tools to position their products or services effectively in foreign markets. We also offer crucial guidance on customs regulations, tax compliance, VAT procedures, and logistics, ensuring a smooth and efficient export process. By leveraging our support, UK companies can confidently expand their global presence and achieve sustainable growth in international markets.

Invest in the UK The United Kingdom provides a dynamic and business-friendly environment, making it an ideal destination for companies looking to expand, trade, and invest. As one of the world’s leading financial and innovation hubs, the UK boasts a robust legal framework, investor-friendly policies, and minimal bureaucratic barriers, allowing businesses to establish, scale, and grow with ease. The country’s strong economy, skilled workforce, and access to global markets further enhance its appeal as a premier investment destination. With a well-developed infrastructure, world-class research institutions, and a thriving ecosystem of start-ups, SMEs, and multinational corporations, the UK oﬀers unparalleled opportunities across various industries, including technology, finance, life sciences, renewable energy, and manufacturing. Investors benefit from competitive tax policies, government incentives, and a highly adaptable regulatory environment that fosters growth and innovation.

Our extensive UK-wide network of inward investment agency partners is dedicated to helping overseas businesses navigate the process of setting up and expanding in the UK. From identifying the right location and securing funding to understanding market trends and forging valuable partnerships, our expert partners provide tailored support to ensure a smooth and successful transition.

Now is the time to take advantage of the UK’s thriving business landscape. Get started today— connect with us to explore new opportunities and unlock your company’s full potential in the UK market!

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UK-Japan

Why Japan?

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Business Guide

UK-Japan

Geography & Population

AREA

377,915 km2 POPULATION GROWTH RATE

POPULATION

-0.5% annually (2026)

122.656 million (2026)

URBAN POPULATION 92% (2026) URBAN GROWTH RATE -0.3% (2026)

¥ CURRENCY

Japanese Yen

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Currency & Language

“

OFFICIAL LANGUAGE

Japanese

Business Guide

Economic Indicators

£18.3

billion (2026)

IMPORTS FROM THE UK

£16.8

billion (2026)

TRADE

EXPORTS TO THE UK

(Goods and Services)

Real GDP (2026)

£3.27 trillion

Real Annual GDP Growth: 0.7% (2026) / Real GDP per Capita: £26,653.08 (2026)

Inflation & Employment (2026)

% 1.9

ANNUAL INFLATION RATE

2.4 % UNEMPLOYMENT RATE

(Source – DBT, IMF, World Bank, WTO)

UK-Japan

Why Japan? Overview Japan has one of the most advanced economies in the world, creating a secure and dynamic environment for international trade and investment. Japan boasts the third-largest economy worldwide, due to its political stability, modern infrastructure, and highly skilled workforce. Japan is a great entry point for UK businesses that wish to do business in the AsiaPacific region. The country is committed to innovation, quality, and technological leadership, which are appealing and beneficial to UK businesses wanting to do business in Japan. Especially those in the financial, advanced manufacturing, sustainability, and digital technology sectors. The UK and Japan’s relationship deepened through the signing of the UK-Japan Comprehensive Economic Partnership Agreement (CEPA). This trade agreement gives UK companies preferential access to the Japanese market, reduced tariffs, and protection for digital trade and Intellectual Property. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) increases the opportunities for British businesses looking to integrate into Japan’s economic market and regional networks. Japan offers opportunities in several sectors, including healthcare for its ageing population, green technology to reach carbon neutrality by 2050, and technology in order to remain one of the world’s leading technology hubs. The Japanese market requires trust, patience and a long-term commitment;

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the relationships created through these are beneficial to UK companies who wish to do business within the Japanese market. Japan overall offers a mature, innovative and forward-thinking market that welcomes UK companies to trade and do business within the country.

Geography Japan is an island nation, located in East Asia. The country lies off the eastern coast of the Asian continent and stretches along the Pacific Ocean. Japan is made up of four main islands, which are Honshu, Hokkaido, Kyushu, and Shikoku, as well as thousands of smaller islands. The country has diverse landscapes from snowy mountains in the north to subtropical beaches in the south. 75% of Japan is covered in mountainous areas and forests, with only a limited space for urban and agricultural development. Japan’s climate also varies throughout the country. In the north, there is a colder and more humid continental climate, and in the south, the country experiences a humid subtropical climate. Japan is part of the ‘Pacific Ring of Fire’, which is a region known for frequent earthquakes and volcanic activity. Japan’s tropical cyclone season is between June and December.

Government Overview Japan has a constitutional monarchy and a parliamentary government. The Emperor, Emperor Naruhito, serves as the ceremonial Head of State, and political power lies with the elected officials. The Prime Minister, Sanae Takaichi (Japan’s first female Prime Minister), is the Head of the Government and leads the Cabinet. The Cabinet is responsible for executing laws and managing national policies.

Business Guide The National Diet is Japan’s national legislature, consisting of the House of Representatives and the House of Councillors. This is the highest state of power in the country, and members are elected by the public. The judicial system is independent of the government and is headed by the Supreme Court. The judicial system ensures that legislation and executive decisions are made to comply with the Constitution. Local affairs are managed by the country’s 47 prefectural governments and municipalities, under the national government.

Economic Overview Japan is the third-largest economy in the world and has one of the most advanced and stable economies. The country is known for its innovation, advanced technology, and manufacturing expertise. Japan’s economic success had been due to its automotive, electronic, robotic, technology, and precision engineering sectors. These sectors are also supported by a strong and skilled workforce and world-class infrastructure. Japan is a key player in international markets due to its innovation, global trade, high standards, and efficiency. Due to its ageing and shrinking population, Japan has faced economic challenges, though it has combatted these through structural reforms, digitalisation and increasing automation throughout its sectors and industries. Initiatives, such as ‘Society 5.0’, which integrates digital technology into society and business, and working towards carbon neutrality, are examples of how the country is stimulating growth, encouraging foreign investment and boosting its productivity. Japan is working towards carbon neutrality by 2050. Therefore, the country is focusing on green growth and sustainability. This

has created opportunities for UK companies that can offer green technology and expertise. Japan is a leading member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and has a trade agreement with the UK, the UK–Japan Comprehensive Economic Partnership Agreement (CEPA). Both trade agreements enhance the UK’s access to the Japanese market and provide opportunities for the UK to do business with Japan, especially in the healthcare, technology, finance and renewable energy sectors. Growth Potential Japan’s growth potential falls within its transformation towards a more digital, sustainable and globally integrated economy. Growth is expected to occur in many sectors and industries, and in particular, the automation, healthcare, technology, and smart infrastructure sectors. The Japanese Government is committed to its Society 5.0 initiative that aims to use advanced technology, such as artificial intelligence, as a solution for social challenges and to reach carbon neutrality by 2050 through increasing its green energy. Global integration will also increase Japan’s growth potential, as the country has signed trade agreements around the world, including CPTPP and CEPA. These trade agreements allow Japan to focus on high-value innovation and global collaboration, which will create steady growth.

Bilateral, Strategic and Free Trade Agreements The UK and Japan have several bilateral, strategic and free trade agreements that have expanded their economic, defence and technology co-operation. 31

UK-Japan The UK and Japan have two Free Trade Agreements (FTAs). The first is the UK–Japan Comprehensive Economic Partnership Agreement (CEPA), which was established in January 2021. This agreement was the UK’s first major post-Brexit trade agreement and was built on the framework set out in the previous EU-Japan trade agreement. This new agreement added stronger provisions on digital trade, financial services and data flows.

strategic partnerships, and co-operation agreements covering areas including academic research, clean energy, cyber security, defence, digital trade, financial services, life sciences, and semiconductors.

UK exporters now benefit from improved market access and strengthened co-operation regarding procurement, mobility and technology.

(Source – Business.gov.uk, Gov.uk)

The UK entered into the Comprehensive and Progressive Agreement for TransPacific Partnership (CPTPP) in December 2024. This agreement involves the UK and 11 other countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The CPTPP gives UK businesses broader access to the Asia-Pacific region and reinforces the UK’s supply chain regulation with Japan. These trade agreements make it easier for UK companies to do business in Japan, due to reduced tariffs and preferential access. Japan, Italy and the UK formed the Global Combat Air Programme (GCAP) in December 2022. GCAP is a multinational initiative established to develop a 6th-generation fighter aircraft by 2035. This is one of the most advanced defence collaborations Japan has taken on with European partners. The programme increases co-operation for AI, air, cyber, defence and sensing technologies. The UK and Japan have signed several memoranda of understanding (MOUs),

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Cyber co-operation has become important to both the UK and Japan, leading to increased collaboration on critical infrastructure protection, emerging technologies, and resilience.

Geopolitical Positioning Japan is changing its geopolitical strategy due to growing regional tensions, economic competition and uncertainty in the global order. The US remains Japan’s primary security ally, and the country is looking to diversify its strategic partnerships, particularly with the UK, the EU and other Indo-Pacific partners. Japan has strengthened its ties with Europe through defence agreements, technology partnerships, trade frameworks and joint Indo-Pacific strategies. The UK has become one of Japan’s closest strategic partners, through co-operation across advanced technologies, cyber security, defence, energy, and semiconductors. The EU and Japan have also increased their economic and political co-operation, especially due to shared concerns regarding economic coercion, maritime security, supply chain security, and technology standards. Japan is increasingly seeing Europe as an important strategic partner. Japan’s relationship with China is important for Japanese industries. However, security issues within the East China Sea, Taiwan, cyber security, regional influence, and technology competition have caused tension between the two nations. To combat this tension, Japan has maintained

Business Guide its strong economic ties with China, whilst reducing vulnerabilities in sectors that are deemed critical, such as advanced technologies, energy, semiconductors and telecommunications.

Business and Human Rights The Japanese Constitution of 1947 guarantees fundamental human rights. This includes freedom of speech, the right to practice a religion, the right to assemble, and equality under the law for all. The country maintains a stable legal framework and allows access to the justice system. The country is regarded as being free and fair, although there are current issues regarding gender equality, workplace diversity, and foreign worker rights. The country, however, aims to tackle these issues through promoting inclusivity and fair treatment reforms. Japan strongly supports property rights, enforces contracts, protects intellectual property and has an efficient judicial system. This makes the Japanese business environment transparent, predictable and stable. Businesses can be confident that their assets and operations are secure and protected. The Japanese Government promotes corporate social responsibility (CSR) and expects companies operating within Japan to uphold high ethical standards in labour practices, environmental protection and governance. Japan is a signatory to the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights. (Source – Gov.uk)

UK and Japan Trade The UK and Japan have a strong and growing relationship built on trust, innovation and open trade. In 2020, the UK and Japan signed the UK–Japan Comprehensive Economic Partnership Agreement (CEPA), which increases and strengthens the two nations' co-operation through reduced tariffs, improved digital trade rules and encourages investment both ways. Japan values British expertise, especially in the finance, technology, green energy and creative industry sectors. The UK values Japan for its technological advancements, high standards and stable market conditions. The UK entered the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2024. This partnership has opened up opportunities for trade and collaboration, especially for the UK in Japan. UK businesses can now look to Japan to be a viable partner when wishing to do business in the Asia-Pacific region. UK Success in Japan There are several UK companies that have been successful within the Japanese market and are continuing to grow. This is done by adapting their company to align with local consumer preferences and building strong, long-term relationships. Successful companies include: l

Burberry, a British luxury brand, have succeeded through aligning its products with the fashion trends within Japan. Diageo, a British beverages company have successfully created long-term partnerships with Japanese distributors and bars.

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Arm Holdings, a British semiconductor and software design company. The company’s semiconductor designs are widely used by electronic manufacturers in Japan. Waitrose, a British retail company, increased its food product exports to Japan. Benefiting from Japan’s strong demand for premium imported goods.

Strengths of the Market Key strengths of the Japanese business and trade market are: l

Benefits for UK Businesses l

An advanced technological and innovative ecosystem Gateway to the wider Asia-Pacific market Government incentives for foreign investment

High demand for premium, high-quality products and services Japan is the world’s third-largest economy

Opportunities in the renewable energy, healthcare, and digital sectors Potential for joint R&D and innovation collaborations

Reputation for reliability and long-term partnerships Stable and transparent business environment

Strong infrastructure and logistics networks Strong legal and intellectual property protections Supportive trade framework under the UK–Japan Trade Agreement

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Advanced infrastructure and logistics systems – Japan has developed worldclass transportation, communication, and energy infrastructure Commitment to sustainability and green innovation – Japan is investing heavily in renewable energy, low-carbon technologies, and sustainable development Culture of long-term partnerships – Japanese companies value trust, respect, and lasting relationships High consumer purchasing power and brand loyalty – Japan’s affluent consumers value quality, reliability, and brand reputation Highly developed and diversified economy – Japan is the world’s thirdlargest economy, supported by strong industrial, technological, and services sectors Robust legal and regulatory framework – Strong intellectual property protection, contract enforcement, and regulatory transparency Skilled, educated, and disciplined workforce – The Japanese workforce is highly literate, technologically proficient, and committed to professionalism and productivity Stable political and economic environment – Japan has a democratic government, low corruption levels, and transparent economic policies

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Strong focus on quality, precision, and efficiency – Japanese businesses are known for their meticulous attention to detail, commitment to high standards, and continuous improvement practices Strong global trade connections – Japan is a member of the CPTPP and a part of the UK–Japan CEPA World leader in technology, innovation, and manufacturing – Japan is globally recognised for its advanced manufacturing, robotics, electronics, and automotive engineering

World Rankings l

In Transparency International’s latest Corruption Perception Index for 2025, Japan ranked 18th out of 182:

https://www.transparency. org/en/cpi/2025/index/jpn

The Heritage Foundation’s 2026 Index of Economic Freedom ranked Japan 30th out of 184 countries:

https://economicfreedom .heritage.org/pages/count ry-pages/japan

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Japan Market Entry

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Business Guide

Decision Making and Trust A key characteristic of the Japanese market is its consensus-based decision-making process. Business decisions often involve consultation across multiple stakeholders before approval is granted. While this can lengthen sales cycles and partnership discussions, it frequently results in stronger organisational alignment and smoother implementation once decisions are made.

Market Entry into Japan Understanding the Market Japan is the world's fourth-largest economy and one of the most sophisticated consumer and business markets globally. With strong purchasing power, advanced infrastructure, and a stable business environment, Japan continues to offer significant opportunities for foreign companies seeking long-term growth. Success in Japan, however, often requires a different approach than in many Western markets. Business relationships, purchasing decisions, and commercial partnerships are built on trust, credibility, and consistency over time. Companies entering Japan should be prepared to invest in understanding the market, developing local relationships, and demonstrating a long-term commitment. A strong product, service, or technology may open the door, but sustained progress depends on showing that the company understands local expectations and is prepared to support the market beyond the initial launch. www.UK-Japan.business

Trust plays an important role throughout this process and remains one of the foundations of successful business relationships in Japan. Patience, preparation, and consistent follow-up are therefore important parts of the market entry process. Understanding Customers Japanese consumers and business buyers are among the most informed and discerning in the world. Purchasing decisions are often preceded by extensive research, including reviews, recommendations, product comparisons, and direct evaluation of products and services. Quality, reliability, customer experience, and brand credibility are important factors influencing purchasing behaviour. Companies should carefully evaluate product market fit and localisation requirements, including product specifications, packaging, sizing, pricing, regulatory compliance, and customer support. Localisation does not always mean changing the core offer, but it does mean understanding how customers evaluate value, risk, usability, and service in the Japanese context. Visibility and Market Validation Even globally recognised brands often begin with limited awareness in Japan.

Establishing visibility requires a clear understanding of how target customers discover, evaluate, and purchase products and services. This applies to both consumer and business markets, where reputation, references, and demonstrated reliability can carry significant weight. Japan is one of the world's largest e-commerce markets, but physical retail remains highly influential, with e-commerce accounting for less than one-fifth of total retail sales. Many customers move between online and offline channels during the purchasing process, making an omnichannel approach valuable in many sectors. Platforms such as Amazon Japan and Rakuten can also provide useful opportunities for market validation and customer insight. Market Entry Options Companies entering Japan typically choose one of several approaches, including establishing a wholly owned subsidiary, appointing a distributor, engaging a specialised distribution partner, or entering into a licensing or franchise arrangement. The most appropriate model depends on a company's objectives, resources, industry, and long-term strategy. Companies entering Japan often benefit from working with a local bilingual and bicultural professional who can help navigate the market's cultural, linguistic, regulatory, and commercial complexities. Local expertise can provide valuable insight into customer expectations, partner selection, distribution channels, and business practices that may not be immediately apparent to foreign organisations.

Foreign companies may establish a Kabushiki Kaisha (KK), Japan's traditional stock corporation structure, or a Godo Kaisha (GK), a flexible limited liability company structure commonly used by multinational firms. Representative offices and local market representatives can also support market development activities during the evaluation phase. Regulations and Business Culture Japan's regulatory environment and distribution networks can be complex and vary significantly by industry. Regulatory requirements, intellectual property considerations, and route-to-market strategies should be reviewed early in the market entry process. In many sectors, regulatory preparation, labeling, documentation, certifications, and import requirements can affect launch timing and partner selection. Understanding Japanese business culture is also important. Professional business cards are expected at meetings, communication styles may be more indirect than in some Western markets, and periods of silence during discussions are often viewed as thoughtful consideration rather than a lack of interest. Taking the Long View Japan rewards companies that take a long-term perspective. Organisations that invest in understanding the market, adapting appropriately to local conditions, and building trusted relationships are often best positioned for sustainable growth and long-term success.

Timothy Connor

www.synnovate.jp

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Investing in Japan

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Business Guide

UK-Japan

Japan's New Drive to Attract Foreign Investment Japan has established a new phase of its economic strategy, and attracting foreign direct investment (FDI) has become one of the government's highest national priorities. Due to an ageing population, labour shortages, and the need to accelerate innovation, Japan is looking to encourage overseas businesses, including those in the UK, to establish and expand their operations into Japan to help find solutions to its economic challenges. This opens up opportunities for UK businesses across a range of industries and sectors. The Japanese Government adopted the Program for Promotion of Foreign Direct Investment in Japan 2025 in June 2025. This program has ambitiously increased Japan’s FDI target from ¥100 trillion to ¥120 trillion by 2030. It has also set a long-term target of reaching ¥150 trillion in the early 2030s. The Government has stated that expanding foreign direct investment must become a central pillar of Japan’s economic growth strategy, and that attracting international investment will be pursued vigorously. The strategy has been put in place to improve the Japanese business environment, simplify administrative procedures, support large-scale regional investment, strengthen collaboration with local governments, and make it easy for both international companies and skilled professionals to establish a presence in Japan that will be successful in the long term. Government agencies, including JETRO and the Japanese Embassies worldwide, have established and expanded dedicated investment promotion teams. These teams will help overseas businesses to navigate

www.UK-Japan.business

Business Guide the process of entering the Japanese market. For more information regarding JETRO and the Embassies, please see our Help Available section within this guide. This is one of the most favourable policies aimed at international businesses that Japan has ever offered. UK companies that wish to expand into Asia may find that the Japanese market is more welcoming and can benefit from stronger government support, greater institutional co-ordination, and a clear commitment to their international investment.

Investing in Japan Investment landscape Japan is the world’s fourth-largest economy and continues to be a stable market both economically and politically. In recent years, the country has made efforts to attract more foreign talent and regional headquarters. With some reassessment of global supply chains and moves toward more regionalization, Japan is increasingly being viewed as an attractive location to invest in, and operate from, by numerous sectors. This was highlighted when the UK and Japan signed a Memorandum of Cooperation in July 2025 that noted key growth sectors with strong potential for increased UK investment include clean energy, digital transformation, biotechnology and healthcare, alongside enabling sectors such as legal, professional and 昀nancial services. For all UK companies expanding into Japan, mastering the intricacies of its business landscape, regulatory framework and tax structure will be essential for success. Such issues are covered below. Later in this section, we set out seven key commercial factors for UK pharma, biotech and healthcare companies to consider when entering the Japanese market. This sector is highlighted due to its signi昀cance and in昀uence on UK companies and investors. However, the information provided should also be relevant for companies in other sectors.

Potential forms of Japanese entity, business activities and tax on pro昀ts There are three main options for operating in Japan: (i) Establish a subsidiary company - i.e., a separate legal entity in Japan There are two major types of limited liability companies in Japan. One is a joint stock company (kabushiki kaisha or KK), and the other is a limited liability company (godo kaisha or GK). KK is the most widely used form of a corporation for both small, private companies and large, listed companies. Historically, KK has been the main choice when establishing a company in Japan. It is still often considered to have more prestige than a GK, by Japanese customers, goods and service suppliers (including banks), and employees and directors. A GK is similar to a US LLC. It is generally considered as being easier and cheaper to establish and maintain than a KK. Japanese companies are subject to Japanese corporate income tax (CIT) on their worldwide income, with an exemption for dividends received from certain subsidiaries. The effective statutory rate of CIT varies from approximately 31% to up to 36% depending on various factors.

(ii) File for the registration of a foreign company – i.e., a Japan branch In contrast to a subsidiary, a branch is an extension of the foreign parent and is not a separate legal entity. Accordingly, a liability associated with business activities conducted by the branch in Japan is directly attributable to the foreign company. For this reason, many foreign companies only use a branch if they provide services to group entities, rather than to third-party customers. A Japanese branch is subject to Japanese CIT on the taxable income attributable to the branch, at similar rates to a Japanese company. It typically takes one to two months to establish a new Japanese company or branch. (iii) Establish a representative of昀ce It is easier to set up a representative of昀ce (RO). However, such an RO should not engage in any commercial transactions. Its activities would be limited to information gathering, market research and general liaison activities. It should be noted that there are also special purpose companies (tokutei mokuteki kaisha (TMK)) and partnership type structures that are used by investors into areas, such as real estate (including arti昀cial intelligence (AI) data centers), renewable energy, and similar capital-intensive investments.

Initial funding and intra-group payments It is possible for a UK parent company (or other group company) to provide funding to a new Japanese entity. This is typically through a mix of share capital and loans (either from a group company or third-

party bank). The speci昀c tax implications should be considered from both a Japanese perspective (interest expenses are usually tax deductible subject to certain limitations) and a UK perspective (interest income is generally taxable). Dividends paid by a Japanese subsidiary to its UK parent will typically be exempt from UK corporation tax; however, it should be con昀rmed that the relevant conditions are satis昀ed. The dividend payment from distributable pro昀ts will not be tax deductible for the Japanese company. Japan has transfer pricing rules that require that the pricing between internationally af昀liated entities should be based on the arm’s length principle, i.e., as if the transactions are between unrelated parties. It is possible to apply for an advance pricing agreement with the Japanese tax authority (and potentially HM Revenue & Customs) to obtain increased certainty and comfort that intra-group transactions are appropriately priced for tax purposes. Under Japan’s domestic tax law, Japanese withholding income tax is applicable to dividend, interest and royalty payments at a rate of 20.42%. However, the UK has a very good tax treaty with Japan that provides an exemption from withholding tax on these types of payments if certain criteria are satis昀ed.

Urgent and/or time-consuming matters The main regulatory and administrative factors that often affect how urgent, complex or time-consuming it is to set up business operations in Japan are as follows: Depending on the sector, it may be necessary to obtain speci昀c licenses, permits, etc. The conditions for which

could impact entity selection, initial funding requirements, time required prior to commencing business, etc. Hiring appropriate competent local staff and/or directors who can communicate in Japanese and English for communication with headquarters. Opening a bank account and associated online banking set-up can be surprisingly dif昀cult and time-consuming especially as an account with a Japanese (not foreign) bank is required to make some statutory payments. Only certain online banking menus are offered in English, and English language support is generally limited. Related to opening a bank account is that a company seal will usually need to be ordered and registered. Making an application to be a blue tax return 昀ler is usually recommended, as this status provides a Japanese entity with certain tax protections and potential bene昀ts. However, the deadline to make the application can require quick action (partly depending on the entity’s yearend). Establishing policies and procedures for bookkeeping and document retention, which is necessary given the stringent Japanese tax audit environment. Japanese national/local government grants and/or tax incentives may be available in some cases, though typically detailed conditions will need to be satis昀ed to obtain them. In summary, it will be important to understand the complex regulatory, legal and tax environment, including in terms of the various types of taxes, multiple 昀lings required, use of tax treaties, and claiming tax deductions and incentives.

Seven key commercial factors for UK pharma, biotech, and healthcare companies entering the Japanese market Japan’s healthcare market is widely recognized as being one of the largest and most advanced globally, offering exciting opportunities for innovative companies in pharma, biotech, and healthcare. However, the path to success in Japan requires navigating several unique challenges. For UK-based companies aiming to establish and grow in Japan, it is essential to carefully consider the key factors below that in昀uence market entry and sustainable growth. 1. Understand the unique market landscape Japan’s healthcare system is characterized by an aging population, high standards of care, a complex regulatory environment and unique payer relationships. Companies should prioritize listening closely to local patients, healthcare providers, and payers, to truly understand their needs and expectations. Those entering the Japanese market should not assume that strategies or solutions that have been successful in the UK market (or other non-Japanese markets) will automatically succeed in Japan. This attentive approach will help tailor products and services to Japan’s speci昀c demands, ensuring relevance and effectiveness in the local market. 2. Adapt and localize your strategy Success in Japan requires more than translation; it demands localization. This includes adapting marketing strategies, digital content, and customer engagement to Japanese language and cultural preferences. Digital marketing approaches that work in Europe or the US may not resonate in Japan. Companies should leverage local digital

channels, social media platforms, and hybrid engagement models that combine online and face-to-face interactions with healthcare professionals and patients. 3. Navigate regulatory requirements with agility Rather than trying to navigate Japan’s complex regulatory environment alone, market entrants should actively connect with local and international support systems. Early engagement with regulatory authorities, understanding submission requirements, and leveraging available incentive programs remain crucial. Additionally, preparing high-quality evidence, including real-world data, and collaborating with local regulatory experts or consultants can signi昀cantly streamline the approval and reimbursement process. Japan maintains a high level of technological advancement; however, the domestic market frequently relies on international innovations to drive further progress. This contributes to an ecosystem of resources, support groups, and collaborative networks, that are ready to assist companies entering the Japanese market. 4. Build personal networks in parallel with corporate networks In Japan, the rigid structures and formal rules of corporations can often create barriers for companies trying to enter the market. However, once connected with the right individuals who have strong personal networks, these groups can extend support beyond their immediate circles to help establish new ventures. For companies, focusing on building relationships with key people - such as physicians, patient advocates, local innovators, and stakeholders in public sector healthcare organizations is far more valuable than relying solely on formal corporate alliances. These personal

connections can open doors, provide critical insights, and accelerate acceptance in the market, making the search for individuals with in昀uential networks a vital step in Japan’s healthcare ecosystem. 5. Build a localized talent and operational base Establishing a local presence with skilled talent is vital. Japanese healthcare professionals and business teams bring essential market knowledge and cultural understanding. Companies should consider bilingual and cross-cultural training to bridge communication gaps and foster employee engagement. Creating career development pathways that combine local leadership opportunities with international exposure can help attract and retain top talent. 6. Align through the right individuals to bridge global and local realities For companies with global ambitions, success in Japan hinges on 昀nding and empowering the right individuals who can effectively translate and bridge the differences between international strategies and Japan’s unique market realities. These key people play a crucial role in maintaining open, transparent communication with global headquarters while ensuring local teams have the autonomy to make decisions tailored to Japan’s environment. Building a business approach that is 昀exible and responsive to local market trends, regulatory shifts, and customer needs - guided by trusted individuals who understand both worlds can signi昀cantly enhance competitiveness and help enable sustainable growth across markets. 7. Embrace a long-term commitment to innovation Japan’s healthcare market values sustained innovation and collaboration. Companies

should view their Japan entry as a longterm journey, investing in building trust, demonstrating value, and contributing to the local healthcare ecosystem. This mindset will help to overcome initial challenges and position companies as trusted partners in Japan’s evolving healthcare landscape. Conclusion Entering the Japan healthcare market presents a unique blend of challenges and opportunities for UK pharma, biotech, and healthcare companies. Success requires more than innovative products - it demands deep understanding of the local landscape, strategic localization, agile navigation of regulatory frameworks and, most importantly, building strong personal networks with the right individuals who can bridge global ambitions with Japan’s distinct market realities. By embracing these key factors and committing to long-term collaboration and innovation, companies are well positioned to pursue opportunities and build a long-term presence. Ernst & Young Tax Co. and EY Parthenon (EY Japan), together with Ernst & Young LLP (EY UK), is committed to supporting clients on this journey across borders. With extensive experience and local expertise, we help 昀rms navigate the complexities of market entry, regulatory compliance, talent acquisition, and strategic partnerships in Japan. We welcome the opportunity to work alongside UK companies to support their growth and impact in this dynamic and rewarding market.

Through our four integrated service lines — Assurance, Consulting, Strategy and Transactions (EY Parthenon), and Tax — and our deep sector knowledge, we help our clients to capitalize on new opportunities and assess and manage risk to deliver responsible growth. Our high-performing, multidisciplinary teams help them ful昀ll regulatory requirements, keep investors informed and meet stakeholder needs. We believe a better working world is one where economic growth is sustainable and inclusive. We work continuously to improve the quality of all our services, investing in our people and innovation. And we’re proud to work with others – from our clients to wider stakeholders – to use our knowledge, skills and experience to help ful昀ll our purpose and create positive change. Enabled by data, AI and advanced technology, EY teams help clients shape the future with con昀dence and develop answers for the most pressing issues of today and tomorrow. Together. All in. This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Member 昀rms of the global EY organization cannot accept responsibility for loss to any person relying on this article.

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Help Available

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Business Guide

Department for Business and Trade The Department for Business and Trade (DBT) is a UK Government ministerial department responsible for supporting British businesses and driving economic growth. DBT helps UK companies start, grow and export by providing expert guidance, practical tools and connections to global markets. It works with companies of all sizes across every region of the UK, from ambitious start-ups to established enterprises looking to expand internationally.

DBT supports UK businesses to: start and grow with free guidance on regulations, funding and business planning export products and services by connecting them with international buyers and markets navigate trade agreements to take advantage of deals the UK has with countries worldwide innovate and scale by connecting them with research institutions and industry networks Find out more about DBT support at: www.business.gov.uk

The Business Academy is DBT's free learning platform designed to help businesses build essential skills and knowledge. It offers practical courses covering topics including business planning, financial management, marketing and exporting. Find out more at: www.business.gov.uk/businessacademy For the latest market data, sectorspecific information and details of how to do business in Japan, read DBT’s market guide at: www.business.gov.uk/export-fromuk/markets/japan/

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Help Available Embassy of Japan in the UK The Embassy of Japan in the UK represents both the Japanese Government and their interests in the UK. Located in London, the Embassy’s mission is to maintain and strengthen Japan’s relationship with the UK. To do this, the Embassy facilitates political dialogue, economic co-operation, and cultural exchange. Japanese citizens living in or travelling to the UK, can benefit from the Embassy’s consular services. These services include renewing an expired, lost or stolen passport, assistance during an emergency, and offering support. The Embassy also promotes the Japanese culture through events, exhibitions and educational programs. In regard to business, the Embassy offers support with business relations, fostering trade opportunities, and creating investment opportunities. For more information, see their website: https://www.uk.embjapan.go.jp/itprtop_en/in dex.html (Source – Embassy of Japan in the UK)

British Embassy Tokyo The British Embassy Tokyo maintains and strengthens the relationship between the UK and Japan. Their mission is to increase international co-operation, promote shared values, support global stability, and foster peace and security.

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They also work towards increasing prosperity in Britain by encouraging trade, investment, and innovation. They do this through open and fair markets and by helping both British and Japanese businesses thrive. British nationals who plan to visit or live in Japan can benefit from the Embassy's many consular services, including renewing passports, supporting those who have lost or had their passports stolen, issuing emergency travel documents, and providing support and services in times of crisis. The Embassy also provides up-to-date travel advice for those wishing to travel to Japan. For travel advice and news, visit their UK and Japan news page: https://www.gov.uk/world /japan/news For more information, see their website:

https://www.gov.uk/world /organisations/britishembassy-tokyo (Source – British Embassy Tokyo)

British Chamber of Commerce in Japan (BCCJ) The British Chamber of Commerce in Japan (BCCJ) works towards strengthening business ties between the UK and Japan. They support the interests of all their members within a number of sectors and industries. The BCCJ is a not-for-profit organisation that currently has over 1,000 members from over 200 companies, within 40 sectors. The organisation has 9 communication channels that create a platform for collaboration, innovation, and the exchange of knowledge.

Business Guide The organisation also offers events, networking opportunities, information services and access to important institutions and individuals that can offer advice, guidance and support to its members. For more information, see their website:

https://bccjapan.com/

(Source – British Chamber of Commerce in Japan)

JETRO: Japan External Trade Organization The Japan External Trade Organization, or JETRO, is a government-affiliated agency that promotes international trade in Japan. Their main aim is to encourage Japanese exports around the world, as well as to attract foreign direct investment into the country. The organisation also supports small and medium-sized businesses (SMEs) who wish to start trading globally. JETRO fosters global partnerships and facilitates economic co-operation, allowing the organisation to drive innovation, trade, and sustainable growth worldwide. The organisation's vision is to create a prosperous and peaceful world through global collaboration. The organisation values and encourages open-mindedness, forward thinking and the continuous pursuit of knowledge, whilst embracing diversity and respect for others’ business ideas and perspectives. For more information, see their website: https://www.jetro.go.jp/en/

(Source – JETRO)

bizNis International bizNis International is a global trade and investment organisation that provides a platform for international business development, networking, and establishing new commercial partnerships. Members can get access to a comprehensive database of live private and government business opportunities across a range of sectors and industries. Giving them a gateway into established, emerging, and high-growth global markets. The organisation co-ordinates trade missions, puts on events, delivers global market programmes and facilitates research and development initiatives and projects. Through these, clients have direct access to key decision makers and business programs. The organisation opens doors for its clients through collaborating with its powerful global network of business leaders, government representatives, and a diplomatic community. For more information, see their website:

https://www.biznis.intern ational/

(Source – BizNis International)

Department for Business and Trade The UK’s Department for Business and Trade (DBT) is a government department that is dedicated to increasing economic growth throughout the UK. Their mission is to support businesses in all areas, including setting up, investing, expanding, and exporting. The aim of this mission is to create jobs and opportunities around the UK.

UK-Japan The Department for Business and Trade was previously the Department for International Trade and the Department for Business, Energy and Industrial Strategy. The merging of the two departments on the 7th of February 2023 has allowed the new department to focus on businesses and international trade. The Department has a set of priorities, which are as follows: l

l l

To support businesses by improving their access to finance, and by creating an environment that has regulations that are pro-enterprise To increase the promotion of UK businesses around the world, in order to attract key investments that are high value To help businesses through free trade agreements and partnerships

https://www.gov.uk/governme nt/organisations/departmentfor-business-and-trade. Or for DBT in Japan, see:

https://www.gov.uk/world/org anisations/department-forbusiness-and-trade-japan DBT has launched an Export to Japan Hub:

https://exporttojapan.co.uk/

This hub offers free information regarding market research, sector guidance, and export advice. (Source – Department for Business and Trade)

Events and Trade Shows

To remove barriers that affect fair competition

Events and Trade Shows are important ways of researching whether your goods or services will be successful within Japan. At these events, you will be able to network with others in your sector/industry to gain important advice and guidance. You will also be able to test the market, attract customers, make sales, and liaise with and appoint agents and distributors.

To enhance supply chain resilience

To strengthen economic security

For more information, visit the Department for Business and Trade’s website at:

To protect consumers

To champion free trade

To review, reform, or repeal retained EU law

To increase economic growth in all sectors

To increase innovation and growth through benefitting from the opportunities of Brexit To remove unnecessary regulatory barriers To advance legislation to establish minimum service levels for essential public services

www.UK-Japan.business

To find out if there are any events or trade shows in the UK and Japan that will benefit your business, visit the following websites: 10 Times:

https://10times.com/unit edkingdom/tradeshows

Business Guide British Expertise:

https://www.britishexpert ise.org/events Events Eye:

https://www.eventseye.com

Great.gov.uk:

https://www.events.great.gov. uk/website/17232/

OPEN FOR BUSINESS

www.UK-Japan.business This guide is available in four formats: • Our website: www.UK-Japan.business • This full colour hard-copy brochure • PDF download* • E-flipbook* *(Please see our website for more details)

Meeting your needs in Japan

With over 35 years’ experience in Japan, we are one of few 昀rms o昀ering an integrated team of US, European and Japanese lawyers. We advise Japanese and international clients in a range of sectors, including 昀nancial institutions, energy and natural resources, consumer products, infrastructure, TMT, life sciences, chemicals, automotive and industrials on their most complex and multijurisdictional transactions.

Beyond Galapagos Japan’s New M&A Era Japan has a large economy, a stable political climate, an affordable currency and an underperforming stock market. But some or all of these have been true for more than 30 years. Why has foreign investment only now taken hold in this fertile ground? Changes in law and corporate culture explain the change – and show the path to success.

Deal-making in Japan today: • 136 昀led TSE tender o昀ers in 2025 – the highest amount ever +36% from 2024 and +31% from the previous record year. • 2025 Japan total deal value – a 20-year peak • PE investment growing rapidly – despite APAC region-wide downturn

No Man is an Island – Japan’s Corporate Culture Is ‘Galapagos Syndrome’ refers to Japan’s island-nation tendency for products and technologies to develop in isolation from – and at a tangent to – the global market. The same can apply to business culture, and can result in a ‘昀rst-mover disadvantage’. Very early and massive market penetration by fax machines led to their entrenchment in business, government and personal life, and their continued use decades after their disappearance in other countries. Japan’s experience with stakeholder capitalism has been similar. Long before the concepts had a vogue in the West, it was the norm in Japan for the concept of ‘corporate value’ to be distinct from, and broader than, ‘shareholder value’, taking account of employees, business partners and

communities. And the entrenched management, conglomerate structures and cross-shareholdings of today’s big tech and AI businesses will feel familiar to last century’s pioneering foreign investors in Japan. The Galapagos terminology may be helpful. Some features of the Japanese economy that most frustrate foreign parties – academic, inconclusive legal advice, slow, bo琀om-up decisionmaking, the informal and almost vague contracting practices, the face-saving preferences for joint ventures, alliances and ‘merger of equal’ structuring – can seem oldfashioned or just bizarre. But are best understood as rational, nuanced adaptations to a unique island biome.

2023 METI Guidelines METI and its role: • The ‘Ministry of Economy, Trade and Industry’ • Active in steering private sector behaviour – both market-wide and on a company-by-company (and sometimes deal-by-deal) basis • De facto rule maker for corporate governance and M&A • With another important role in FDI approvals

If we could isolate one change triggering (or at least heralding) the new wave of Japan M&A, it would be the ‘Guidelines for Corporate Takeovers’ published by METI in August 2023. While these (like many recent evolutions in local corporate practice) take the form of non-binding ‘soft law’ guidance, they have had a dramatic impact.

The guidelines are expressed in unremarkable language, and the key components seem banal – ‘all takeover o昀ers should be submi琀ed to the board and sincerely considered by at least one independent director’ does not sound like a ground-breaking principle. But the guidelines are radical in clearly expressing – for the 昀rst time – that employee job security is not a valid ground for rejecting o昀ers, that boards cannot deem all o昀ers to be bad faith o昀ers out of hand, and that ‘corporate value’ is not distinct from (or in opposition to) ‘shareholder value’. Smart bidders in 2026 will express their initial outreach and public communications to align with the language of the 2023 guidelines.

Key take-aways from 2023 M&A Guidelines: • Corporate value means shareholder value • Boards should consider bids • Saving jobs is not a valid reason to reject an o昀er • Bidder access to due diligence should not be unreasonably conditioned • Independent directors should take the lead

Activism and TSE Disclosure Japan is a target-rich environment for activist shareholders, for whom the Japanese corporate environment provides many opportunities with few barriers to entry (relative to those faced by potential control acquirors). Despite ongoing reform e昀orts, certain activist red 昀ags (non-core assets, large cash piles, cross-shareholdings, long-term incumbent management) are over-represented among companies listed on the Tokyo Stock Exchange. Decades back, in our pioneering transactions for foreign strategic minority investors, we did sense a ‘circling of the wagons’ among Japanese stakeholders, with banks, advisors and intermediaries hesitant to challenge local directors and managers. Today, the situation is dramatically di昀erent. Local institutional investors are welcoming foreign activists behind the scenes – because they know that activists can successfully push for changes that would never otherwise occur. Independent board members may also quietly welcome activist a琀ention and the 2023 METI guidelines as an important support in ful昀lling their duties. (As of 2025, only 26.2% of TSE’s Prime Market companies have a majority of independent directors – and some of these may be very long-standing incumbents that would not be considered independent in other markets).

Even the TSE has taken steps to align with activists and activist concerns. Today, around 40% of companies listed on the TSE’s most-prestigious ‘Prime Market’ have a price-to-book ratio less than one – with their potential break-up value exceeding their market-value. This is double or triple the proportion of such companies on other comparable stock markets. But the TSE has now begun to require special public disclosures of concrete plans to improve priceto-book ratio. Annual reports will now include information on whether companies are considering divestitures (‘reviewing the business portfolio’), board or management changes (‘enhancing governance’) or other methods of improving share price.

Japan Take-Privates – a mini how-to: • Assume an all-cash tender o昀er structure • Squeeze-out possible at 2/3 ownership (faster at 90%) • No takeover code or takeover panel • Informal gate-keeping via necessary ‘pre-consultation’ with TSE, local 昀nancial services agency, antitrust regulator, etc • No 昀nancing conditions, limited withdrawal rights

A Great Unwinding Japan Inc. has a long track-record (and long-term secular drive) in outbound strategic acquisitions dating back to its ‘bubble era’. And the trends above are starting to unlock value for foreign inbound investors, both strategic and 昀nancial, into Japanese businesses. But the focus on shareholder value and (in the words of the TSE) a healthy ‘industrial metabolism’ are also spurring another new development – Japanese companies are more willing than ever to carve out and sell assets. Our savviest Japanese clients are now using M&A to e昀ect strategic pivots (and not just to buy growth or sell to raise funds) to an extent that would have been unheard of just a few years ago. This may be to move out of commoditised technologies or non-core assets, to reposition away from challenging geographies, or as the 昀nal step in post-merger integrations around past acquisitions.

Although the sale assets can be unique and valuable, these sales by Japanese strategics can bring with them their own challenges – planning and patience are essential. First and foremost is a lack of experience: Japanese industrial groups have decades of experience in navigating the buy side of M&A deal in line with their own internal processes – but may have no experience in crossborder dispositions. Even some sophisticated Japanese groups will be making their 昀rst signi昀cant divestment; their internal structures may be incompatible with a clean and e昀icient stand-alone sale. Japanese employment culture can be another hurdle. While Japan’s ‘lifetime employment’ system is not as robust as it once was, employees continue to show great pride and loyalty in working for a leading domestic company. Key employees may be hesitant or even emotional when facing a sale to foreign ownership. Such concerns can in turn incentivise very strict limits on the size of working groups in sell-side transactions – with the domino e昀ect that diligence and carve-out planning can be slow, di昀icult and inadequate. This material is provided by Fresh昀elds, an international legal practice. We operate across the globe through multiple 昀rms. For more information about our organisation, please see h琀ps://www.fresh昀elds.com/en/footer/ legal-notices. Fresh昀elds Horitsu Jimusho and Fresh昀elds Gaikokuho Jimu Bengoshi Jimusho (Gaikokuho Kyodo Jigyo) (together ‘Fresh昀elds Tokyo’) operate as a joint enterprise regulated by the Japan Federation of Bar Associations in accordance with the Japanese Civil Code and the Act on Special Measures Law Concerning the Handling of Legal Business by Foreign Lawyers. This material is for general information only. It is not intended to provide legal advice on which you may rely. If you require speci昀c legal advice, you should consult a suitably quali昀ed lawyer. © 2026 Fresh昀elds Tokyo, all rights reserved.

UK-Japan

Getting here and advice about your stay www.UK-Japan.business

Business Guide

UK-Japan

Getting here and advice about your stay Entry Requirements If you are travelling with a full British passport, then the information in this chapter will be beneficial for you. The entry rules are enforced by the Japanese authorities. To check if these apply to you, contact the Embassy of Japan in the UK: https://www.uk.embjapan.go.jp/itprtop_en/index. html Passport Validity Requirements Your passport must be valid for the entire length of your stay; no additional period is required. Make sure you have a blank page within your passport for your visa stamp. Your travel provider will be able to check whether your passport and documentation meet the required regulations. If you have lost your passport or if it has expired or been stolen, renew your passport via this website: https://www.gov.uk/rene w-adult-passport/renew If you do not have the correct travel documentation, or you are travelling with an expired or stolen passport, you will be denied entry. Visa Requirements You do not need to apply for a visa before you travel to Japan; you can get a tourism or business visa on arrival. These visas are valid for up to 90 days. Japanese immigration officials can assist you if you require a multi-entry visa. www.UK-Japan.business

If you wish to stay longer than 90 days, you can apply for an extension of a further 90 days. This must be done at an immigration office, and you must be able to prove that your passport will remain valid for this period. If you plan to study or work in Japan, make sure you have the correct visa and meet the Japanese Government’s entry requirements. To check which visa you will need, see the Ministry of Foreign Affairs of Japan website: https://www.mofa.go.jp/j_ info/visit/visa/long/index. html It is illegal to work in Japan without the correct visa. Overstaying your visa can result in arrest, detention, and/or a fine. If you plan to live in Japan, see the guidance from the Japanese Immigration Services Agency: https://www.moj.go.jp/isa/

Also read Gov.uk’s guidance: https://www.gov.uk/guida nce/living-in-japan

Customs Rules Japan has strict rules and regulations regarding what can be brought into the country. For more information, see the Japan Customs’ website: https://www.customs.go.j p/english/summary/prohi bit.htm

Business Guide Anything that may be prohibited or subject to a tax or duty must be declared at customs. Taking Food into Japan It is illegal to bring meat products into Japan without prior permission. For more information, see the Japanese Animal Quarantine Service’s guidance: https://www.maff.go.jp/a qs/english/product/impor t.html Without this permission, you could receive a fine and a prison sentence. You can purchase whale meat in Japan. However, do not try to bring this back to the UK with you, or to any EU country, as this is illegal. In the UK, you can be fined up to £5,000 and may be given a prison sentence. Taking Money into Japan Japan is a cash-based society, and you may find it difficult to use UK-issued debit or credit cards. Cash machines can be found in post offices, 7-Eleven shops, and at JP Post Bank. Many of these cash machines will take foreign cards. (Source – Gov.uk)

Flights and Airports Japan is well connected to the UK. UK airports offer direct or one-stop flights to several major Japanese airports. Direct Flights Direct flights from the UK can be boarded at London Heathrow (LHR) and will arrive at Tokyo Haneda (HND). Journey times can average between 13-14 hours. These direct flights make travelling to Tokyo accessible for business travellers. One-Stop Flights Other UK airports, including Birmingham, Edinburgh and Manchester, usually only

offer flights that require you to stop over in another country. For example, in major European and Middle Eastern hubs, such as Amsterdam, Doha, Dubai, Frankfurt, Helsinki, or Paris. International Airports Japan’s major international airports include: l l l l

Chubu Centrair International Airport (NGO) Kansai International Airport (KIX) Tokyo Haneda Airport (HND) Tokyo Narita Airport (NRT)

Jet Lag Japan is 8-9 hours ahead of the UK, dependent on BST, for the first few days of you journey you may experience jet lag. It is advised that you gradually adjust your sleep schedule before you travel. Whilst travelling avoid caffeine and alcohol, and stay hydrated. To help you adjust, make sure you set your watch to Japan hours before you leave your flight. When you arrive, spend time outdoors in natural daylight to help reset your body clock, stay awake until local evening time, and keep the schedule for your first day as free as possible to help you adjust.

Connectivity Japan has one of the world's most reliable telecommunications networks, making it easy for business travellers to stay connected throughout their visit. Mobile Data To make sure you have enough mobile data for you trip, you can purchase an eSIM before you leave the UK or contact your UK mobile provider as they may offer an international roaming package.

UK-Japan You can buy physical SIM cards at major airports, electronics retailers, and convenience stores before you travel.

If you are taken to a hospital or a medical facility, contact your travel insurance company as soon as possible.

Pocket Wi-Fi Many business travellers carry a pocket Wi-Fi device, these are personal and portable hotspots that can provide a fast and reliable internet connection.

Vaccines and Health Risks It is important that at least 8 weeks before you travel to Japan, you check which vaccines you will need. See the TravelHealthPro website for guidance:

Public Wi-Fi Free Wi-Fi is available in many locations, including:

https://travelhealthpro.org.uk/ countries/japan#Vaccine_Reco mmendations

l l l l l l

Airports Cafés Hotels Major railway stations Shopping centres Some convenience stores

While coverage is extensive in urban areas, public networks may require registration and should not be relied upon for confidential business communications. Power Supply Japan uses Type A and Type B electrical plugs with a 100-volt supply. UK travellers will require a plug adapter, and some high-powered appliances designed for 230V may not function at full capacity. Charging facilities are commonly available at airports, hotels, trains and many cafés.

Health Before you travel to Japan, make sure that they can provide the healthcare you need, and that you have the appropriate travel insurance that will cover this healthcare, local treatments and any emergencies, including medical evacuations. This is especially necessary if you have a health condition or are pregnant. Emergency Medical Number If you need an ambulance, dial 119. www.UK-Japan.business

For more information, see the NHS’s website: https://www.nhs.uk/vaccinations/ travel-vaccinations/ Health risks that could be present in Japan include: l l l l

Altitude sickness Dengue Insect and tick bites Whooping cough

For more information, see:

https://travelhealthpro.or g.uk/countries/japan Medication Be aware that some medications that are legally prescribed or bought over the counter in the UK may have a different legal status in Japan. For more information, see TravelHealthPro’s website: https://travelhealthpro.or g.uk/factsheets/medicine s-and-travel Under Japan’s anti-stimulant drugs law, some medications are illegal in Japan, including:

Business Guide

l l l l

Allergy and sinus medication Cold and flu medication (that contains pseudoephedrine) Painkillers (that contain codeine) Vicks inhalers

There have been cases where foreign nationals have been arrested and deported for carrying these items. Check medication statuses at the Embassy of Japan in the UK: https://www.uk.embjapan.go.jp/itprtop_en/in dex.html Healthcare in Japan Japan’s high-quality medical facilities can be expensive; be aware that you will be asked to pay in full for your treatment. Treatment can also be delayed as your travel insurance needs to be checked. For a list of medical providers that speak English in Japan, see the FCDO’s website: https://www.gov.uk/governme nt/publications/japan-list-ofdoctors-and-medical-facilities If you are living in Japan, see Gov.uk’s guidance: https://www.gov.uk/guidance/l iving-in-japan#healthcare-injapan Travel and Mental Health It is equally important to take care of your mental health when travelling. See the FCDO’s guidance on travelling and the effects on your mental health: https://www.gov.uk/guida nce/mental-health-andwellbeing-abroad For further information, see TravelHealthPro’s website:

https://travelhealthpro.org.uk/ factsheets/travel-and-mentalhealth Travelling with a Disability For information when travelling with a disability, see Gov.uk’s website at: https://www.gov.uk/gover nment/publications/disab led-travellers (Source – Gov.uk)

Safety and Security Terrorism Although there have been no recent terrorist attacks in Japan, there is a worldwide threat towards UK interests and British nationals. Make sure you remain vigilant. Read the advice from the UK Counter Terrorism Policing before you travel, which offers guidance and what to do if a terrorist attack occurs: https://www.counterterrorism. police.uk/runhidetell/ Also see Gov.uk’s advice here: https://www.gov.uk/guidance/ reduce-your-risk-fromterrorism-while-abroad Political Situation Violent disturbances are rare in Japan, although there have been hostile pronationalist demonstrations towards foreign countries. If a protest occurs, make sure you stay away or leave the area quickly. Japan and the Korean Peninsula Tensions can arise in the Korean Peninsula with little notice, especially during North Korea's missile tests and South Korea-US

UK-Japan military exercises. Be aware that these take place throughout the year. During North Korea’s missile tests, missiles are launched towards Japan, and this is unlikely to stop.

and upskirting. Police have advised that you should shout to gain the attention of other passengers and staff members. The Gov.uk website has further advice for women travelling abroad:

Follow local authority advice and check the NHK World’s guidance: https://www3.nhk.or.jp/ nhkworld/

https://www.gov.uk/guida nce/advice-for-womentravelling-abroad If you are travelling alone, the Gov.uk website has advice and guidance for you:

For missile alerts, see: https://www.kokuminhogo. go.jp/en/pc-index_e.html (Source – Gov.uk)

Crime There are higher crime rates in Tokyo’s entertainment districts, so be vigilant, especially at night and in bars and clubs. Be aware that foreign nationals have been targeted for extortion, robbery, and assault. As in the UK, take precautions and get local advice where necessary. Protecting your Belongings Keep your belongings close to you and where you can see them when travelling. It is advised that you keep valuables in a secure place, such as in a hotel safe. Sexual Assault Sexual assault is rare in Japan; however, it can happen. Be aware that the law in Japan puts a high burden of proof on the victim to prove that the sexual relations were not consensual. There have been cases where female passengers on trains have experienced inappropriate behaviour, including touching www.UK-Japan.business

https://www.gov.uk/guidance/ solo-and-independent-travel Drink Spiking and Credit Card Fraud There is a risk of drink spiking and credit card fraud in Japan. Victims have woken up with no memory and have realised that large amounts of money have been billed to their credit cards. The risk of this is higher in bars and clubs. High-risk areas identified by Tokyo police include: l l l l

Ikebukuro Kabukicho Roppongi Shibuya

It is advised that you do not accept drinks from strangers, and you do not leave your drink unattended. Credit cards may be cloned in bars and restaurants when you pay for food and drink. Make sure you get a police report, as many credit card companies will not act without this. Methanol Poisoning There have been cases of methanol poisoning worldwide, which is usually through drinking an alcoholic drink spiked with methanol. Methanol can cause serious illness, and even small amounts can kill.

Business Guide For further information, see Travel Aware’s website: https://travelaware.camp aign.gov.uk/spiking-andmethanol-poisoning/ If you or someone you are travelling with shows signs of methanol poisoning, seek urgent care immediately. Illegal Drugs Spiking If drugs are found in your bloodstream, you may be charged, whether you consented or not. If you refuse to take a drug test, you will be arrested for obstructing police duties. If you are in a hospital and a blood test shows you have illegal drugs in your system, the police will be notified. Disputes over Bar Bills There have been reports of British Nationals being arrested due to excessive bar bills. These disputes have mainly occurred in high-risk areas. Make sure you request to see a menu before ordering food and drinks. Keep track of what you have ordered and ask about the admission price before entering. Prostitution and Street Touts Prostitution and street touting are common in Japan; do not engage or follow a street tout. You may not be charged for entry into an establishment; however, you may be excessively charged when leaving. (Source – Gov.uk)

Laws and Cultural Differences Personal ID Make sure you always carry your passport or Japanese residence card with you. If you can’t prove your residence status or show your visa, you may be arrested.

Alcohol Bans It is not illegal to drink in public places in Japan; however, bans are put in place in certain areas or on certain days, e.g. New Year’s Eve. Smoking It is illegal to smoke on the streets in some cities, including in Tokyo. There are usually designated areas to smoke in. Illegal Drugs and Prison Sentences Penalties for drug use and/or possession are severe; you can be arrested for even carrying a small amount of illegal drugs on your person. Be aware that drug tests are carried out during police raids on bars and clubs. If you are caught drug trafficking, you can face a fine of 3-4 million Yen and/or 6-17 years in prison. Part of your prison sentence could involve working in a factory or carrying out labour. LGBT+ Travellers Same-sex relationships are not illegal in Japan; however, there are no laws that prevent discrimination based on sexual orientation. Same-sex marriages are not recognised, though some local authorities will issue a certificate of recognition in certain situations. LGBT+ areas in Japan include Nichome in Tokyo and Doyamacho in Osaka. For further advice, see Gov.uk’s website: https://www.gov.uk/guidance /lesbian-gay-bisexual-andtransgender-foreign-travel-a dvice Custody Disputes Japanese family law differs from that in the UK. Joint custody after a divorce is not an option and getting access as the noncustodial parent can be challenging. Disputes can take time and can be very expensive. 69

UK-Japan If a child has been taken by a parent, the rulings to return the child or to secure access are not always enforced correctly. For more information, see Gov.uk’s website: https://www.gov.uk/gover nment/publications/japan -child-abduction Public Behaviour Loud behaviour can result in negative attention, as well as when showing affection in public. Tattoos As tattoos are historically known to be associated with organised crime in Japan, be aware that some public places will require you to cover tattoos. Or you may find you will not be allowed access to certain areas, such as at swimming pools and gyms. Acceptance is, however, increasing. (Source – Gov.uk)

Transport Risks Road Travel If you wish to drive anywhere abroad, it is advised that you read Gov.uk’s guidance: https://www.gov.uk/driving -abroad For the rules on driving in Japan, see the Japan Automobile Federation’s driving guide: https://english.jaf.or.jp/ driving-in-japan

When you are driving in Japan, make sure you have your UK driving licence, your insurance documents and a 1949 international driving permit (IDP). For more information on how to obtain an IDP, see: www.UK-Japan.business

https://www.gov.uk/drivin g-abroad/internationaldriving-permit Without these, you could be fined or arrested. IDPs must be obtained before you travel to Japan, and they can only be used for up to 1 year. If you plan to stay for longer than a year in Japan and wish to drive, you must get a Japanese driving licence. See Gov.uk’s website for more guidance: https://www.gov.uk/guidan ce/living-in-japan#drivingin-japan If you plan to hire a car in Japan, be aware that their requirements are much stricter than in the UK. You must have a year of driving experience, and they may also have a minimum age. When applying for driving insurance in Japan, be aware that you must get 2 types: 1. Compulsory insurance or Jibaiseki hoken 2. Voluntary insurance or nin’i no jidoshahoken Drink Driving The legal limit of alcohol in your system in Japan is a third of the legal limit for the UK. If you are over the limit, you may be fined or arrested. If you are a passenger in a car with a drunk driver, you may also face a penalty, including arrest. Driving Standards In Japan, you must drive on the left, watch out for pedestrians who cross at green lights, cyclists on the wrong side of the road, and other drivers braking quickly. The condition of Japanese roads tends to be well-maintained.

Business Guide If you are in an accident, call the police and your travel insurance company for guidance. (Source – Gov.uk)

Extreme Weather and Natural Disasters For information on how to prepare for, and what to do in the event of, a natural disaster, see Gov.uk’s website: https://www.gov.uk/guidance /living-in-japan#naturaldisasters. See the Japanese Meteorological Agency website for updates and warnings: https://www.jma.go.jp/bosai /#lang=en&pattern=default

you understand their instructions for what to do if an earthquake occurs. Make sure you also do this at train stations. For safety tips, see the Japan National Tourism Agency’s website: https://www.jnto.go.jp/safetytips/eng/emergency/earthqua ke/e01.html. Volcanic Eruptions Japan has several active volcanoes. Make sure to monitor local reports and always follow the local authorities' advice. For safety tips, see the Japan National Tourism Agency’s website: https://www.jnto.go.jp/safetytips/eng/emergency/volcanic/v0 1.html (Source – Gov.uk)

Tropical Cyclones Japan’s tropical cyclone season is between June and December, this peaks between July and September. When travelling during these times, be aware that southern regions are more at risk. Make sure you follow local authority advice and respond quickly to any evacuation orders. Other dangers that can be caused by tropical cyclones include high tides, landslides, and floods. For further safety guidance, see the Japan National Tourism Agency’s website: https://www.jnto.go.jp/safetytips/eng/emergency/weather/ w01.html Earthquakes and Tsunamis Japan lies in a major earthquake zone. When you arrive at your hotel, make sure

Travel Insurance Make sure you obtain the appropriate travel insurance to cover any medical treatment you may need, any activities you plan to do, and if you have any emergencies. For guidance on which travel insurance you should choose, see: https://www.gov.uk/guida nce/foreign-travelinsurance (Source – Gov.uk)

Further Help If you require any further help, see the Foreign, Commonwealth & Development Office (FCDO) website for more guidance: https://www.gov.uk/foreigntravel-advice/japan/gettinghelp

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Clifford Chance

Introduction: the legal landscape for companies doing business in Japan

Introduction: the legal landscape for companies doing business in Japan Japan has a well-established civil law system underpinned by strong institutions and the Constitution of Japan which places significant emphasis on the rule of law. However, there are unique features of the Japanese legal and regulatory framework that foreign businesses should understand. Based on our extensive experience helping international companies invest and operate in Japan, we have set out some of the key legal and regulatory issues below. Japanese public investment law and governance reforms Japan’s public equity market has undergone significant reform over the past decade, with a clear policy objective: improving capital efficiency, transparency and accountability of listed companies. For institutional investors and corporates considering investments in Japanese listed companies, understanding the evolving governance and regulatory framework is essential. In 2022, the Tokyo Stock Exchange (TSE) reorganised its market structure into Prime, Standard and Growth segments. The Prime Market, designed for global investors, imposes higher governance, liquidity and free-float requirements. The TSE has taken a more assertive approach to capital efficiency, asking listed companies trading persistently below book value to set out clear improvement measures. This initiative is closely watched by activist and value-oriented investors. Japan’s Corporate Governance Code, most recently revised in 2021, applies to all public companies in Japan. The Code is principles-based and operates on a ‘comply or explain’ model. Key themes include board independence, with enhanced expectations for independent directors; disclosure of cross-shareholdings; capital allocation policies; sustainability; and human capital disclosure. Prime Market companies, in particular, face heightened expectations regarding governance quality and investor engagement. Complementing this, Japan’s Stewardship Code encourages institutional investors to engage constructively with investee companies, exercise voting rights responsibly, and disclose stewardship activities. While voluntary, adherence is now widespread among domestic asset managers and increasingly influential in shaping issuer behaviour.

Clifford Chance

Introduction: the legal landscape for companies doing business in Japan

Japan’s M&A environment has also evolved. The Fair M&A Guidelines issued by the Ministry of Economy, Trade and Industry (METI) promote procedural fairness, board independence and transparency in acquisitions, including unsolicited bids and management buyouts. While non-binding, the guidelines are increasingly treated as de facto standards by boards, courts and market participants. Taken together, these reforms signal a decisive shift towards shareholder-oriented governance in Japan. For international investors seeking minority investments and strategic positions in Japanese public companies, the regulatory landscape offers greater transparency, clearer engagement frameworks and more predictable conditions.

“Japan offers a transparent and well-deﬁned framework for foreign investment, giving international investors clarity and conﬁdence when entering the market.” Michihiro Nishi Partner

Regulatory regime for foreign investors The Foreign Exchange and Foreign Trade Act (FEFTA) is the primary law governing foreign investments in Japan. Investments and acquisitions involving targets operating in certain industry sectors require approval from the relevant regulatory authorities. A mandatory and suspensory pre-closing filing is required for acquisitions by foreign investors of shares in Japanese companies, including certain acquisitions of shares or voting interests in Japanese companies operating in designated sectors, unless exemptions apply. Other types of investments may also trigger a filing under FEFTA. These include the transfer of business by a Japanese company, the appointment of a director of a Japanese company, and the granting of a loan with a term of more than one year to a Japanese company. The scope of restricted sectors is broad and covers areas considered sensitive to Japan’s national interests, including national security, cyber security, public order, public safety and certain protected domestic industries. The government may issue an order to unwind, discontinue or alter a deal. Criminal sanctions, including imprisonment, are possible if such an order is breached. Acquisitions by foreign investors of shares in Japanese companies in non-restricted sectors are subject to postacquisition reporting requirements. Currently, indirect acquisitions of shares in Japanese companies do not trigger a filing under FEFTA. The Japanese government is considering amendments to the foreign investment regulations. As a result, indirect acquisitions of shares in Japanese companies may in future require a filing under FEFTA. In addition to FEFTA, investments by foreign investors in sensitive sectors such as telecommunications, broadcasting and transport are regulated under specific laws for those industries.

Clifford Chance

Introduction: the legal landscape for companies doing business in Japan

Real estate investment One of the most popular forms of investment into Japan is real estate. There are generally no regulatory restrictions for international investors acquiring real property in Japan, except in rare cases where the property is near sensitive facilities designated by the Japanese government, such as Self-Defence Force bases or nuclear power plants. No ﬁling is required under FEFTA if an onshore entity acquires the real property, which is the typical arrangement.

In the TK/GK structure, investors provide equity through a tokumei kumiai (TK) investment into a godo kaisha (GK), a type of Japanese corporation that acquires the real property.

The TMK structure uses a tokutei mokuteki kaisha (TMK), another type of Japanese corporation, as the asset-holding vehicle.

When setting up an investment structure, consider tax efficiency, compliance with legal requirements and bankruptcy remoteness requirements that may be imposed by lenders providing nonrecourse ﬁnancing. The most common structures used by investors in Japanese real estate are the TK/GK structure and the TMK structure. Broadly, the TK/GK structure is commonly used for passive investment arrangements, while the TMK structure is typically used where investors require a higher degree of control and structured ﬁnancing. Investors should select the most suitable structure in cooperation with their legal, tax, and accounting advisers, taking these features into account.

“Japan’s real estate market remains a compelling destination for global investors, supported by regulatory stability, strong fundamentals and a wide range of structuring options.” Yoshiaki Shimizu Partner

Employment law Employment law in Japan differs from many other countries, with a framework that provides signiﬁcant protections for employees. These differences can affect how employment contracts are interpreted and applied, and may lead to outcomes that are not expected based on experience in other jurisdictions. For example, individuals engaged on consultancy contracts may be entitled to employee protections that do not apply in other countries. There are practical steps to help navigate Japan’s employment law environment, such as monitoring the renewal of annual contracts and observing limits on working hours. When employment issues arise, it is important to seek advice from lawyers who understand both the Japanese legal framework and the differences between Japanese and overseas employment law regimes. Our team has extensive experience supporting international businesses with Japanese employment law, including conducting investigations and resolving disputes.

Clifford Chance

Introduction: the legal landscape for companies doing business in Japan

Dispute resolution Japan’s legal system is sophisticated, with a professionally trained and independent judiciary. Corruption is low and Japanese companies generally prefer to resolve disputes through negotiation. While compliance issues and disputes can arise, it is important to select an appropriate dispute resolution mechanism in commercial contracts involving Japanese parties. Japanese courts are well regarded for their fairness and efficiency, but there are risks to consider before selecting Japanese courts for dispute resolution. Proceedings must be conducted in Japanese, which can be a disadvantage for non-Japanese parties. In addition, court procedures can be complex, lengthy and costly, and it is rare for parties to recover most of their legal expenses, even if they are successful. For these reasons, international arbitration is often recommended for crossborder disputes. International arbitration allows parties more freedom to establish a procedure that suits their needs. For example, they can select the language of proceedings and usually have some control over the identity of the tribunal. Japan’s local arbitration institution, the Japan Commercial Arbitration Association, has robust rules and experience handling arbitrations involving non-Japanese parties. Alternatively, parties may agree to apply the rules of overseas arbitral institutions, such as LCIA, ICC, SIAC or HKIAC.

“For international businesses, arbitration in Japan is a well-established and efficient option for resolving cross-border disputes.” Peter Harris Partner

About Clifford Chance Clifford Chance is a global law firm committed to creating advantage for its clients. We combine legal and commercial intelligence to grow, transform, protect and defend our clients. Operating as a single, fully-integrated global partnership, we provide forward-thinking insights and tech-enabled solutions in the sectors and markets that matter most to our clients. Our culture of collaboration and commitment to rigorous and ethical standards ensures consistent high-quality service worldwide. With over 40 years’ experience advising on Japan-related matters, our integrated team in Tokyo provides practical advice on all aspects of doing business in Japan, tailored to your needs and culture. We understand Japanese business and have a strong track record advising international businesses investing and operating in Japan, as well as Japanese companies expanding overseas. We respond quickly and clearly, with strategic insight, especially on cross-border matters. As a full-service law firm with Japanese-English bilingual capabilities, our Tokyo office includes lawyers qualified in Japan, the UK, Australia, Singapore, the US and other jurisdictions.

Clifford Chance

Introduction: the legal landscape for companies doing business in Japan

Legal checklist for doing business in Japan 1

Understand what Japanese laws and regulations apply to your business.

Ensure all necessary registrations and approvals are in place.

Carefully consider your hiring approach and understand the employment law environment.

Consider where and how to resolve disputes if they arise. If Japanese courts are not suitable for your business, consider international arbitration instead.

Assess your company’s exposure to political risks and identify steps to mitigate them.

Conduct thorough due diligence on counterparties and seek legal advice to assess and mitigate legal risks.

Your key contacts in Japan Leng-fong Lai Partner, Capital Markets

Hans Menski Partner, Banking & Finance

Masafumi Shikakura Partner, Antitrust

+81 3 6632 6625 leng-fong.lai @cliffordchance.com

+81 3 6632 6669 hans.menski @cliffordchance.com

+81 3 6632 6323 masafumi.shikakura @cliffordchance.com

Reiko Sakimura Partner, Capital Markets

Suguru Kimura Counsel, Banking & Finance

Shunsuke Nagae Counsel, Corporate

+81 3 6632 6616 reiko.sakimura @cliffordchance.com

+81 3 6632 6412 suguru.kimura @cliffordchance.com

+81 3 6632 6321 shunsuke.nagae @cliffordchance.com

Hajime Saito Partner, Capital Markets

Natsuko Sugihara Partner, Corporate

Jenny Han Counsel, Corporate

+81 3 6632 6651 hajime.saito @cliffordchance.com

+81 3 6632 6681 natsuko.sugihara @cliffordchance.com

+81 3 6632 6326 jenny.han @cliffordchance.com

Matthew Ball Counsel, Capital Markets

Jeff Schrepfer Partner, Corporate

Yoshiaki Shimizu Partner, Real Estate

+81 3 6632 6342 matthew.ball @cliffordchance.com

+81 3 6632 6610 jeff.schrepfer @cliffordchance.com

+81 3 6632 6322 yoshiaki.shimizu @cliffordchance.com

Yusuke Abe Partner, Banking & Finance

Michihiro Nishi Partner, Corporate

Peter Harris Partner, L&DR

+81 3 6632 6332 yusuke.abe @cliffordchance.com

+81 3 6632 6622 michihiro.nishi @cliffordchance.com

+81 3 6632 6635 peter.harris @cliffordchance.com

This publication does not necessarily deal with every important topic or cover every aspect of the topics with which it deals. It is not designed to provide legal or other advice. We strongly recommend seeking tailored legal advice. Clifford Chance (Gaikokuho Kyodo Jigyo), Palace Building, 3rd ﬂoor, 1-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-0005, Japan © Clifford Chance 2026

cliffordchance.com

UK-Japan

Japan’s Education System

www.UK-Japan.business

Business Guide

UK-Japan

Japan’s Education System If you are relocating to Japan for a shortterm posting or a longer assignment, and you have children of school age who are relocating with you, it is important to take into account the school system in Japan. Japan has one of the most widely regarded education systems in the world. It boasts high literacy rates, strong student outcomes, and a structured national curriculum. The country’s education system is overseen by the Ministry of Education, Culture, Sports, Science and Technology (MEXT). The Ministry establishes the curriculum guidelines, the academic standards and the country’s education policy. Japan’s education system values academic achievement, as well as discipline, responsibility, social cohesion, and teamwork. Education Structure l

6 years of Elementary School: 6-12 years old 3 years of Lower Secondary School: 12-15 years old 3 years of Upper Secondary School: 15-18 years old 4 years of University

Elementary and Lower Secondary School education is compulsory in Japan. The academic year normally begins in April and is divided into 3 terms. Elementary education focuses on foundational subjects, such as arts, Japanese language, maths, music, physical education, science, and social studies.

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Lower Secondary education widens to accommodate more specialised subjects, including foreign languages, particularly English. Although Upper Secondary is optional, enrolment is high at 95%. Students can choose to attend academic high schools, specialised programmes, technical colleges, or vocational schools, depending on their future career goals or ambition to go to university. Public Education Japan’s public school system is funded and administered mainly by local governments. Public Elementary and Lower Secondary schools are regarded as being of high quality, and educational standards are equal across regions. Public schools follow MEXT’s curriculum, ensuring that the academic content is consistent throughout the country. Tuition for compulsory education is free, although families are responsible for purchasing uniforms, materials, lunches and extracurricular activities. There is a considerable emphasis on students' behaviour, collective participation, and social responsibility. They are often responsible for cleaning classrooms and facilities, serving lunches and participating in group activities. Admission into Upper Secondary School is competitive, and entry is usually determined through a prefectural entrance exam, academic records and an interview process. High-performing public schools are seen as pathways to top national universities. National universities, including the University of Tokyo and Kyoto University, are two of the most prestigious universities in Japan, which receive substantial government support.

Business Guide Public universities are less expensive than private universities and are highly competitive academically. Private Education There is a large private education presence in Japan, especially at the Upper Secondary and University levels. These schools market themselves on academic performance, international education, religious affiliation, specialised programmes, and university entrance success. Many private secondary schools have a clear path to help students get into top universities through rigorous academic preparation and direct progression. Some private schools offer both lower and upper secondary school systems to help students avoid the highly competitive entrance exams. Private Universities account for the majority of the country’s higher education institutions, and educate a large proportion of Japan’s university students. Institutions, including Waseda University and Keio University, are internationally recognised for their business, international studies, politics, and research programmes. Private tuition fees are significantly higher than those for public schooling, especially at university level. However, they do offer a more flexible curricula, strong international partnerships, programmes taught in English, and corporate networks.

Upper secondary schools require students to sit prefectural or institutional exams, and university admissions usually require a combination of the national Common Test for University Admissions and institutionspecific entrance examinations. Japan is increasing its efforts to internationalise its admissions through more English-language programmes, accepting international qualifications, and encouraging overseas students to apply. Exams and Assessment Exams are a central part of Japan’s education system, and they strongly influence a student’s academic progression. There are a number of assessment methods carried out, including assignments, attendance, classroom tests, participation, and written tests. Entrance exams are the most important milestones. The University entrance process can be challenging, as students apply to multiple universities and may sit several exams during the admissions process. Although there is a focus on exams and tests, recent educational reforms have increased the emphasis on the importance of creativity, communication skills, critical thinking, digital literacy, and problemsolving.

Japan also has supplementary private education institutions, known as ‘Juku’, or cram schools. These after-school programmes provide academic support, exam preparation, and tutoring. Admissions and Enrolment The admission process can vary. Public compulsory schools’ enrolment is based on the catchment area. Admission to public upper secondary and university is based on exam results. 81

How to Choose the Right School in Japan for Your Family Japan offers a wide and complex international-school landscape, with curricula ranging from the International Baccalaureate to American, European and British systems. Each comes with its own advantages. The challenge is understanding which environment will best strengthen your child’s academic trajectory while helping them settle socially and emotionally in a new country. For British families in particular - and for employers sending staff to Japan - education continuity, wellbeing, and long-term university pathways are often non-negotiable. So what should families look for? 1. Curriculum Continuity Children arriving in Japan rarely have the luxury of timing their relocation to align precisely with the start or end of their academic career. For this reason, the right school must slot seamlessly alongside their previous studies, while also keeping doors open for future global moves, or UK repatriation. Families typically ask: Does the curriculum align with UK or home-country schools? Are GCSEs/IGCSEs or A Levels offered? Will exam boards align with those used back home? Can pupils repatriate easily at the end of their parent’s posting? British-style pathways in Japan remain relatively rare. Some schools now operate hybrid systems, while others follow the IB exclusively. One institution positioning itself around UK school continuity is Rugby School Japan, which offers a fully British route from Key Stage 3 through to IGCSEs and A Levels, alongside academic integration support for incoming pupils.

RSJ recently announced multiple offers from Oxbridge and Russell Group universities, achieved by a small graduating cohort: evidence that an overseas posting need not dilute academic ambition. 2. Support for Mobile, International Families Corporate relocations can be complex, and assignments may last two years or ten leading many families to fear instability for their children, especially when facing future repatriation or moving again to another global hub. When selecting a school in Japan, the journey can be simplified dramatically by a strong and supportive admissions team who works closely with parents, HR departments and relocation agencies. The best admissions teams will collaborate closely with families to evaluate transcripts, discuss subject combinations, and consider future academic pathways reducing disruption and smoothing transitions once children arrive. Schools designed around international mobility typically offer: Mid-year entry points Academic bridging where syllabi differ University counselling from early secondary years Flexible boarding options Rugby School Japan describes its admissions model as deliberately built for this kind of fluidity, supporting families moving between British schools worldwide or returning to the UK later on. 3. Cultural Integration Without Academic Compromise Japan is famously safe, efficient and culturally rich, but for children arriving from overseas, the transition can be daunting. Parents should therefore consider schools that treat integration as a two-way process: helping pupils embrace life in Japan while retaining the educational structures with which they are familiar.

Effective programmes often include: Japanese language and cultural exposure Pastoral mentoring Peer-support systems Local community engagement Cultural exchanges with Japanese schools Blending immersion with familiarity is increasingly attractive to globally minded parents who want their children to gain Asia-Pacific literacy without sacrificing future options. 4. Co-Curricular Depth Matters Top universities and future employers increasingly look well beyond exam results. When choosing their child’s school in Japan, families should ask what happens beyond the academic timetable. The strongest schools mirror leading UK independents with rich co-curricular and “super-curricular” programmes: competitive sport, music and drama, debating, robotics, Olympiad-style academic challenges, research projects and lecture series. Rugby School Japan has developed partnerships with organisations such as Tokyo University and Google to extend pupils’ learning beyond the syllabus, alongside mandatory structured enrichment for boarders and day pupils. Such opportunities help students build confidence, character and intellectual depth while adapting to a new country. 5. Pastoral Care Is Non-Negotiable Academic success is fragile if children feel unsettled, with relocation placing particular strain on young people. Challenges such as new languages, social systems, long parental working hours and unfamiliar

routines can create anxiety when not handled with sensitivity and care. Parents should therefore ask schools: How are new arrivals supported? Are tutor groups small? Is there a house system? How often are parents updated? How are houses staffed? Rugby School Japan is one of only two schools in Japan to receive Beacon Status from The Council of British International Schools (COBIS) for pastoral care. This is a rare distinction awarded for exemplary wellbeing provision and positions the school as a leader in this domain - giving parents confidence that their children can settle quickly. Making the Decision There is no single “best” school for every family relocating to Japan, but the right one will align with your long-term plans, protect academic momentum, and support your children through cultural transition. When visiting schools, prioritise: Curriculum fit University outcomes Pastoral systems Admissions flexibility Co-curricular breadth Flexible boarding provision Relocation experience For British families and multinational employers assessing postings to Japan, Rugby School Japan prides itself on providing hands-on support to families prioritising these precise points. The school’s aim is to make one of life’s biggest transitions academically secure, culturally enriching and personally positive.

Families interested in exploring options often begin with virtual tours and admissions consultations, so to learn more about Rugby School Japan, please visit our website or join us for a virtual tour.

Education in Japan Case Study:

The Mullick Family In the summer of 2023, Mr and Mrs Mullick embarked on an adventure that was equal parts daunting and exciting: they were relocating from the UK to Japan with their two children - then aged 11 and 14. For Mr and Mrs Mullick, who were moving to Tokyo for work reasons, finding a school that closely replicated their children’s British independent school experience was key. Like many British parents moving to Japan, Mr and Mrs Mullick wanted the reassurance of educating their children within the British system that they “know and trust”. In particular, the family were hoping to find a school that offered the familiar GCSE and A Level Curricula, rather than the International Baccalaureate (IB) which the Mullick family felt could limit their children’s choices upon returning to the UK.

“

It was essential that the school offer both GCSEs and A-Levels, as we know we will be returning to the UK and that the return could happen at any time.

”

Although the International School market in Japan is highly competitive, there are just a small handful of schools that follow the British curriculum. Among these schools was Rugby School Japan - where the Mullick’s two children are currently enrolled in years 9 and 11. A young school, Rugby School Japan (RSJ) opened at precisely the time when the family were due to arrive in Japan. With its small class sizes, flexible day and boarding options, UK Key Stage 3, IGCSE and A-Level curricula, and expansive enrichment programme, RSJ felt like the natural choice. As Mrs Mullick explained, “We were impressed by the new facilities, small class sizes and leadership from the headmaster. We are also familiar with Rugby School in England and its long-standing reputation. We felt that RSJ best replicated the ethos and standards of the UK independent school.” Like its historic sister school in the UK, Rugby School Japan emphasises strong academic standards - with 56% of last

year’s A Levels awarded at A*-A, and 59% of GCSES awarded at A*-A. Not only that, RSJ pupils have also received multiple offers from Oxford and Cambridge, UK Russell Group universities, and some of the top global universities in the UK, US, Europe and Asia Pacific region. This places RSJ firmly in the same league as many of the UK’s highest performing schools. On top of academic excellence, Rugby School Japan equally emphasises “Whole Person” development through its broad enrichment offering. This is a mandatory programme for all pupils - with activities ranging from football to podcasting, and cheerleading to stretch maths. What has particularly impressed the Mullick family about Rugby School Japan has been the quality of teaching from the school’s British teaching staff, as well as the “clear academic expectations and supportive classroom environments.” Mrs Mullick also speaks highly of the sense of belonging her children have developed since joining RSJ, for which she credits the school’s house system “which helped them settle in quickly”. “Pastoral care was also of importance to us, given that our children were moving country at a critical stage in their education.”

Mr and Mrs Mullick initially chose to enrol their children as day pupils at Rugby School Japan, but have since chosen weekly boarding - where pupils live on campus during the week and return home on weekends - for their son who will complete his GCSEs this year. Although the exact timing of the Mullick family’s eventual return to the UK is not yet set in stone, they are aware that repatriation is a reality they must prepare for. Working closely with RSJ’s dedicated team of university counsellors, the family are in the early stages of considering university pathways. When asked to summarise her children’s experience at Rugby School Japan, Mrs Mullick replied:

“

RSJ has provided a happy and supportive environment where our children can focus on their education, achieve strong academic outcomes and settle into life in Japan.

”

If you would like to learn more about how Rugby School Japan supports families relocating to Tokyo and wider Japan, please visit our website or join us for a virtual tour.

UK-Japan

Sector-Specific Opportunities

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Business Guide

UK-Japan

Sector-Specific Opportunities Advanced Manufacturing Japan is one of the world's leading advanced manufacturing economies, recognised for its expertise in precision engineering, automation, robotics and high-quality production. Manufacturing is one of Japan’s most important sectors in terms of its economy. The automotive, aerospace, electronics, machinery, and industrial equipment industries are competitive globally. Innovative Manufacturing Technologies UK businesses that can provide their expertise in smart manufacturing and precision engineering may find opportunities within the aerospace, automation, automotive, electronics, and robotics industries. As the country continues to move towards sustainability, there are also opportunities for UK businesses that can provide advanced materials, lightweight materials and sustainable manufacturing solutions. Japan is looking for UK expertise to help innovate supply chains to be more sustainable, efficient, and resilient. Digital Manufacturing Japan is one of the world’s largest digital manufacturing markets, and the country has opened up opportunities for UK businesses in AI, digital twins, industrial software, and Industry 4.0 technologies.

Automotive Industry Many of the world’s leading car and vehicle manufacturers were established in Japan, including Honda, Mazda, Nissan, Subaru and Toyota. The automobile sector is integral to Japan’s economy, and it is renowned worldwide for its innovation, quality and reliability. www.UK-Japan.business

Current Industry Trends Japan’s current automobile trends have shifted towards greener options, including electric vehicles (EVs) and hydrogen fuel technology. The country is also putting plans in place to increase the number of vehicles that allow for autonomous driving systems. These trends create numerous opportunities for UK companies, especially those that work towards clean mobility solutions, advanced materials, equipment and technology, and digital engineering.

Clean Energy and Solutions By 2050, Japan hopes to be carbon neutral. Therefore, the country is providing opportunities for UK companies that can offer green and sustainable solutions. Renewable Energy To reach carbon neutrality, Japan is increasing its renewable energy sector. Meaning opportunities are available for UK companies that can provide services, equipment and materials for offshore wind, hydrogen and solar power. Sustainable Solutions Japan is investing in green infrastructure, low-carbon technologies, energy storage and waste management, in order to be more sustainable. Therefore, there are opportunities for UK companies that can provide these services, solutions, and expertise.

Dual-Use Technologies and Defence Sector Japan has become an important country in regard to developing dual-use technologies, meaning they have both civilian and defence applications. The country is developing dual-use technologies as a response to its more complex regional security environment and its concerns regarding advanced technology competition, economic security, and supply chain resilience.

Business Guide Technologies The Japanese Government has put emphasis on the development of technologies, such as advanced materials, artificial intelligence, autonomous systems, cyber security, nextgeneration telecommunications, robotics, semiconductors, space technologies, and quantum computing. Many of these are rooted in Japan’s globally competitive industrial and manufacturing base, allowing civilian research and commercial innovation, including that from the UK, to support their defence modernisation. Policy Reforms Traditionally, Japan’s defence sector has been domestically focused and has been constrained by post-war constitutional and export restrictions. Recent reforms now mean international collaboration, defence exports and joint development programmes with strategic partners are encouraged. This creates numerous opportunities for companies in the UK within this sector. Opportunities are increased through the Japanese government expanding their defence spending. The country aims to strengthen their deterrence capabilities and invest in defence technologies. Co-operation Dual-use co-operation between the Japanese government, academia and industry is increasing. Japanese ministries are increasing their funding within research areas that are linked to economic security and resilience, including critical infrastructure protection, cyber resilience, energy security, and microelectronics. Therefore, there are opportunities for UK companies that can provide this. The Global Combat Air Programme, or GCAP, is an agreement between the UK, Japan and Italy. The programme is encouraging collaboration across advanced manufacturing, aerospace, AI, cyber capabilities, data systems, and sensors.

Beyond this agreement, the UK and Japan are increasing their collaboration on defence industrial co-operation, digital technologies and semiconductors. Further widening the opportunities for UK companies.

Fashion With one of the largest fashion markets worldwide, Japan’s affluent consumer market demands new and upcoming trends. Tokyo is Japan’s fashion and creative hub, as it is the home of both Japanese and foreign fashion designers. British Brands In Japan, many consumers believe that if an item has a ‘Made in the UK’ label, then it is authentic. There is also a demand for many British fashion brands, creating opportunities for UK companies that can stock and export well-known British brands. Especially for businesses that hold a Royal Warrant of Appointment. British Textiles Demand Textiles worth £175 million, including leather products, were exported to Japan from the UK in 2019. In order to facilitate the demand in Japan for British textiles by increasing trade, UK companies can now benefit from the UK-Japan Trade Agreement that minimises costs and makes administrative procedures easier. Rules of Origin The exporting of clothes from the UK to Japan has become easier under the UKJapan Trade Agreement. A producer needs to carry out only one manufacturing process in the UK in order to export under the tariff, as long as 50% of the input is domestically sourced. (Source – Business.gov.uk)

UK-Japan

Financial and Professional Services Japan has one of the world's largest financial markets and has a highly developed professional services sector. Tokyo, as a leading financial centre, plays a key role in asset management, banking, business consulting, insurance, and legal services. FinTech Japan is one of the world’s most important digital hubs, including in FinTech, to maintain this status, there are opportunities for UK businesses that can provide AI financial services, cybersecurity, digital payment solutions, and open banking services. Many Japanese financial institutions are collaborating with UK businesses that can provide strong financial technology partnerships. Professional Services There are opportunities for UK businesses that can provide a range of professional services in Japan, including accounting, asset management, business transformation support, consulting, corporate finance, insurance and reinsurance services, legal support, mergers and acquisitions support, and sustainable finance.

Food and Drink Traditional Japanese food is a major part of Japan’s culture; however, Japanese consumers enjoy food and drink from around the world. Demand for British Products Authentic British food and drink products are popular in Japan. There is a demand for British tea, beer, whisky, salmon and biscuits. Therefore, there are opportunities for UK companies that can stock these goods.

www.UK-Japan.business

The UK-Japan trade agreement makes sure that UK companies and their goods are protected during the exportation process. Fewer Restrictions Under the UK-Japan Trade Agreement, improvements have been made to the Rule of Origin, meaning that on certain goods, such as baked goods, restrictions have been removed. Therefore, UK companies in the food industry may find that they have greater freedom in regard to where they source their ingredients when they wish to export to Japan. (Source – Business.gov.uk)

Healthcare and Life Sciences Due to Japan’s ageing population and their interest in healthcare innovation, the country can offer numerous opportunities for UK companies. Ageing Population Japan has an ageing population and one of the world's oldest populations. Therefore, there is a demand for medicines, pharmaceuticals, medical devices, biotechnology, and elderly care services. Creating opportunities for UK companies within these sectors. Healthcare Innovation Japan is looking for companies that can bring new innovative healthcare ideas into the country, including those from UK companies. There are currently opportunities for biotech R&D, digital health, and medical equipment within the healthcare sector. To encourage this, the Japanese Government supports international partnerships.

Media Japan has one of the world’s largest, well-known, and sophisticated media markets. The sector plays a significant role in Japan’s economy due to its anime,

Business Guide established broadcasters, digital publishers, national newspapers, and growing online platforms. Its high internet penetration speeds and widespread smartphone use have increased the importance of social media and made it an important part of Japan’s communication landscape. Creative Industries, Broadcasting, and Gaming Japan has an established global presence regarding film, TV, animation, video games, music, and digital content. Therefore, there are opportunities for UK businesses that work within this sector and can provide their own expertise, creative services, video game development, and content management. Media Technology As Japan’s media sector continues to grow and develop, opportunities for UK businesses that can provide expertise and services continue to appear. Especially in AI, digital publishing, content management, data analytics, and streaming.

Technology Japan is known worldwide for its technology companies, including Sony and Fujitsu, and these companies keep Japan at the forefront of the technology sector. Japan is currently establishing its Society 5.0 initiative. The initiative should bring new technology into society in order to address challenges, including the country’s ageing population. Open Innovation Japan’s technology sector is one of the leading sectors worldwide, due to its cutting-edge technologies, including robotics, unmanned aerial vehicles (UAVs), and autonomous systems. Therefore, there are opportunities for UK companies that can offer new technologies, services and expertise that will help Japan maintain its leading technology sector.

Joint Digital Market The UK-Japan Trade Agreement allows the two nations to work within a joint digital market. This has opened up many opportunities for UK companies, who will now find it easier to share ideas and technologies with their Japanese counterparts. Demand for Digital Exports One of the UK’s largest technology exports to Japan falls into computer programming and consultancy services, as well as other activities within this sector. Between 20172018, the UK saw a 14.7% increase in digital services exports to Japan, meaning there is an ongoing increase in opportunities for UK companies in this sector. (Source – Business.gov.uk)

Third Country Projects Instead of solely concentrating on bilateral trade and investment, Japan is working with international partners, such as the UK, the EU, the US and regional governments, to develop energy, infrastructure and connectivity projects across Africa, Asia, the Middle East and other emerging markets. Japan offers UK businesses access to largescale, internationally backed projects that are supported by government financial institutions, export credit agencies and multilateral development banks. Participation will require long-term commitment and strong compliance standards. Infrastructure Japan is strongly driven by increasing the quality of infrastructure in order to promote long-term sustainability, higher technical standards, resilience, and transparency. Japanese firms are highly regarded for engineering their expertise, project reliability, and advanced technologies in a range of sectors. 91

UK-Japan These sectors include: l l l l l l

Industrial Infrastructure Power Generation Rail Smart Cities Telecommunications Water Systems

Therefore, there are a range of opportunities for UK businesses that can provide expertise in these areas. Energy Japan is actively investing in projects that are linked to energy transition and supply chain diversification. Therefore, there are opportunities for UK companies that can provide expertise on battery materials, carbon capture and storage (CCS), grid modernisation, hydrogen and ammonia supply chains, LNG infrastructure, nuclear technologies, and offshore wind. Large-scale international energy projects, including those with the UK, are being funded and delivered by Japanese trading houses, utility companies, engineering firms and financial institutions. Third Markets Japan is looking towards the UK to collaborate in third markets. This is due to the strengths of British businesses, such as in advanced technologies, cyber security, finance, legal services, and project development. As these strengths complement Japan’s strengths within engineering and industry. Areas of mutual interest between the UK and Japan are: l l l l l

Clean Transport Systems Digital Infrastructure (Especially in Southeast Asia and the Indo-Pacific) Maritime Decarbonisation Renewable Energy Infrastructure Smart Manufacturing

www.UK-Japan.business

Geopolitical & Economic Security Japan’s geopolitical and economic objectives create several opportunities for UK businesses to collaborate with Japan. Projects have been established to strengthen the resilience of supply chains, reduce dependency on competitors, and support regional stability. There are opportunities for partnerships in: l l l l l l

Critical Minerals Infrastructure Logistics Networks Semiconductors Strategic Ports Telecommunications

Case Study

Xampla Ltd, Alexandra French, CEO Introduction (Xampla) Xampla is a materials innovation company using the power of plants to create new materials that change the world. Xampla’s world-first Morro materials are designed to eliminate the most polluting plastics. Made from natural polymers with no chemical modification, Morro materials are fully biodegradable, home compostable and compatible with standard recycling processes. Morro materials are on a mission to eliminate the most polluting plastics and make it simple for everyone to choose the planet. Introduction (Alexandra French) Alexandra has a degree in Natural Sciences from the University of Cambridge. She brings extensive global experience from 25 years at Johnson Matthey and as CEO of an AIM listed business, as well as being an accredited coach. She has a proven track record of creating high performance teams and is leading Xampla in delivering its growth strategy and as it launches Morro materials into the global market at scale.

and the relevance of Morro Coating to the Japanese and Asian packaging markets. Why did you choose to collaborate with DIC Corporation? DIC Corporation is a global leader in the chemicals industry with deep expertise in tackling PFAS and plastic pollution through innovation. Their strong operational capabilities, credibility in the Japanese market, and commitment to circular economy principles make them an ideal partner to help scale Morro Coating in Asia and support rapid adoption by packaging manufacturers.

Collaboration with DIC Corporation and Japan Why are you attracted to the Japanese market? Japan has set ambitious targets to drive a circular economy through the Plastic Resource Circulation Act, including reducing single-use plastics and increasing the use of biomaterials. There is also a strong market and consumer awareness of marine plastic pollution, which is especially significant for an island nation. This combination of policy support, market demand, and technological leadership makes Japan a highly relevant market for Morro Coating. How were you introduced to DIC Corporation? DIC is a Limited Partner of Emerald Technology Ventures who are one of our recent Series A investors, and we were introduced through DIC’s Corporate Venture Capital team. This connection enabled early discussions around shared innovation priorities, sustainability goals,

How did you collaborate with DIC Corporation? We are collaborating with DIC Group to introduce our PFAS- and plastic-free Morro™ Coatings to foodservice markets in Japan and wider Asian markets. The collaboration brings together Xampla’s world-first materials technology with DIC’s expert operational standards and experience in scaling innovative, sustainable materials across Asia. How did the collaboration with DIC Corporation start, and how has it developed over time – how will it continue? In Japan, regulatory, market, and customer demand for sustainable packaging is accelerating. DIC’s focus on making sustainable packaging meant they are constantly on the lookout for innovative materials that can help domestic packaging manufacturers replace existing plastic and PFAS coatings on foodservice packaging. Moving forward, we are working closely with DIC to support domestic manufacturers adopt Morro Coating across foodservice packaging formats and supply both local and global markets.

What are some difficulties with collaborating with Japanese companies and how have you been able to overcome these?

at scale. We will support our partners to manufacture and bring Morro Coating to market, ensuring seamless integration into existing supply chains.

There is a strong value placed on partnerships and long-term relationships which align closely with our own values and how we operate.

What are your plans moving forward with collaboration in Japan?

Building these relationships through faceto-face meetings and regular engagement has helped overcome any cultural or language barriers. Therefore, our experience has been very positive.

Japan and wider Asia are key markets for Xampla’s global expansion. Through collaboration with partners such as DIC, we aim to support packaging converters, manufacturers, and the paper industry in adopting plastic- and PFAS-free solutions.

We have also benefited from having Japanese expertise and culture within our team, with one of our senior research scientists from Japan studying in Tokyo before moving to Cambridge and playing an instrumental role in developing our technology. This further helped strengthen connections and mutual understanding on both sides. How do you feel about using JETRO services – how has it impacted your relationship with Japanese companies? JETRO has been extremely helpful and proactive in supporting our engagement with Japanese companies. They invested time in understanding our company and technology, which meant introductions were highly relevant and valuable. All meetings facilitated through JETRO had clear potential and were supported with translation and active participation. Do you plan to enter the Japanese market (set up an entity)? Our route to market is through a licensing business model working with well-established, expert Japanese businesses to manufacture and commercialise our Morro Coating

JETRO London Cheapside House, 138 Cheapside, London, EC2V 6BJ Tel: 020 7421 8300 Email: ldn_invest@jetro.go.jp www.jetro.go.jp/uk

UK-Japan

Preparing to Export

www.UK-Japan.business

Business Guide

UK-Japan

Preparing to Export

Research and Considerations

It is important that when considering doing business with Japan that you make regular visits. To help with your research, it may be useful to contact others within your industry/sector. This will allow you to gain up-to-date knowledge and advice in order to help achieve success in Japan. This research can help you to understand where you may need to do further research and will help you to get a valuable insight into how Japan conducts business in your sector.

l l

For further guidance, visit: https://www.business.gov.uk/ l l

Here, you will find information regarding how to develop your marketing strategy, how to analyse your competitors, how to carry out a SWOT analysis, and guidance on customer/market segmentation. You will also need to determine if there is a market for your product or service in Japan, if your pricing is competitive, and whether you may need to change the way in which you market your product, which includes its advertising and packaging. It may be useful to look over your business model and adapt it where necessary. To help you decide whether doing business in Japan is right for you, you will need to ask yourself the following questions: l

Do you wish to import to or export from Japan, or both? How do you wish to establish yourself in Japan? (direct sales, franchising, licensing) www.UK-Japan.business

Is it necessary for you to do business with Japan? Is Japan part of your wider plan? Can you carry out a SWOT analysis of your own company and others? Is there already a market for your product/service in Japan? What are your unique selling points? (USPs) Can you be competitive in Japan? Do you have the time and resources to be successful in Japan? (Product demand, communication services, after-sales services) Do you know how to secure payment? Do you know how to secure potential partnerships, agents, or distributors? Do you know how to reach potential customers?

To gain the answers to these questions, it is important that you carry out extensive research and reach out to those in your sector for advice and guidance.

Export Plan Once you have carried out your initial research, it is important that you carry out an Export Plan. This requires you to find and map out your best route for entering the Japanese market. For help and guidance on creating an Export Plan, visit: https://www.business.gov.uk/export -from-uk/learn/categories/ marketresearch/evaluate-opportunities/ how-to-create-an-export-plan/

Business Guide Visiting trade shows in the UK and Japan can help you to research whether your product/service will be a viable competitor within the Japanese market. Information on events and trade shows can be found at: https://www.events.great.gov. uk/website/17232/ Use the filter tool to search for events and trade shows regarding Japan. (Source – Gov.uk)

Start Up Considerations Setting up a Company or Business in Japan If you are planning to set up a company or business in Japan, it is advised that you check the UK Government’s guidance. This guidance can be accessed at: https://www.gov.uk/setup-business It is advised that you get in touch with a local lawyer or accountant to get the information and guidance you will need to decide which business type will best suit your business goals and targets. You can enter the Japanese market through direct exporting, setting up a branch locally, or appointing a local distributor. If your business requires customer service, find a local partner who will understand Japanese logistics and can speak Japanese. Make sure you offer regular training and development updates.

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A branch office A limited liability joint stock company (LLC) A joint venture/partnership A representative office (activities limited to marketing and auxiliary services)

For further help and guidance, contact the Department for Business and Trade at: https://www.gov.uk/world/or ganisations/department-forbusiness-and-trade-japan Make sure you have a local counterpart or a direct presence in Japan if you wish to participate in the Japanese Government procurement bidding process. Distributorship Agreement If you are planning to export to Japan, it may be best to work with a partner or agent within the country. They will be more familiar with Japanese markets and will be able to give you guidance and advice. They can help you to seek new business, keep in contact with customers, and keep you up to date on market trends. Before making a decision, ensure you do research surrounding potential partners, agents, or advisors. You need to look at their reputation, resources, market ability, and success rate. Be aware of those who have products or services that are similar to yours. For more information and guidance, contact the Department for Business and Trade at: https://www.gov.uk/governme nt/organisations/departmentfor-business-and-trade

There are several ways you can build your business in Japan, including:

UK-Japan Direct Export and Sales Direct export means that you sell your goods straight to the customer yourself, without using a distributor. This will involve you taking care of the logistics of marketing, selling, exporting, getting paid, and after-sales services. This may be a good option for you if you are selling online. Licensing and Franchising Franchising and licensing may be an option for your business within Japan, as it can reduce the initial set-up costs. Though it is important that you make sure you set up legal agreements first. Make sure you carry out due diligence checks on any licensees. This is to ensure that your intellectual property (IP) stays protected. Check how to license your IP in Japan at: https://www.gov.uk/guidance/l icensing-intellectual-property Consumer Protection When selling to consumers in Japan, make sure you comply with Japan’s relevant consumer protection laws. For more information, Japan’s Consumer Affairs Agency sets out all the laws concerning consumer protection on its website: https://www.caa.go.jp/en/law/

Professional Indemnity Insurance You may need to take out professional indemnity insurance when doing business with Japan. For more information, contact the Department for Business and Trade at: https://www.gov.uk/governme nt/organisations/departmentfor-business-and-trade

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Regulatory Considerations Japan has a highly developed and rules-based regulatory environment. UK businesses entering the Japanese market must be prepared for complex approval processes, detailed compliance requirements, and a strong emphasis on long-term reliability, quality and safety. Regulatory standards tend to be transparent and consistent, though it is advised that you gain local advice and expertise. You must adhere to the legal requirements, as well as industry norms, technical standards and customer expectations. These may exceed the minimum regulatory thresholds. Due to this certification and document requirements, product testing processes may be more rigorous than in other international markets. Data protection and cybersecurity regulations have become significantly important in Japan. Japan’s Act on the Protection of Personal Information (APPI) sets the regulations for data handling and cross-border transfers. In sectors such as critical infrastructure, defence, finance, and telecoms, the requirements for cyber resilience are increasing. Businesses that are handling sensitive data or offering digital services should comply with both national and sector standards and regulations. You must also consider foreign investment screening. Oversight of investments has strengthened in sensitive industries, including advanced technologies, defence, energy, semiconductors, and telecommunications. In some cases, you may need government approval before you acquire a stake in a Japanese business. Employment and corporate governance regulations need to be met. Labour laws are in place to protect employees, create safe working conditions, and to ensure structured employment processes are carried out. Corporate governance

Business Guide regulations have increased the expectations concerning board oversight, ESG reporting, shareholder engagement, and transparency. There are also sector-specific regulations, such as in the advanced manufacturing, financial services, food and beverages, medical devices, and pharmaceutical sectors. These regulations may require local approval, import requirements, and technical certification processes. Be aware that this can take longer than average market entry times. It is advised that you work with local partners, distributors, or advisors to navigate Japan’s regulatory environment effectively and correctly. (Source – Gov.uk)

Financial Considerations Contact your bank, accountant or financial advisor when setting up your contracts for exporting and doing business in Japan. Your contract should include your policies for payment. For payments to be secure, make sure your terms include the use of partial payments, deposits, letters of credit, or cash in advance of exportation. Only use open account terms if you have already established a successful trading relationship within Japan. It is important to note that in Japan a range of payments are accepted, including cash, credit cards and bank transfers. Payment Risks All payments can come with risks; therefore, you must make sure you are confident you will be paid following the terms of your contract before you export your goods or services. Currency Risks Before selling to Japan, make sure you have fixed your exchange rates. Before

anyone signs a contract, you need to decide whether you will sell your goods or services in Pound Sterling or Japanese Yen. It is advised that before you fix your exchange rate, you seek guidance and financial advice from an expert. Pricing and Budget Cycles Japan’s annual pricing and budgeting cycle is highly structured and is closely linked to the government’s fiscal planning and corporate budgeting. Japan’s fiscal year runs from April 1st to March 31st. Budget preparation begins in the autumn months, and final budgets are finalised in December and January. Ministries and companies will usually submit their funding requests before this. Budgets are then approved before the new fiscal year begins in April. The pricing cycles in Japan usually emphasise stability. There are many companies that will review prices annually during the budget preparation process. Adjustments, however, do occur gradually due to Japan’s long-standing market expectations concerning predictable pricing and strong customer relationships. Due to certain challenges, including inflation, energy costs, and currency fluctuations, there have been more price revisions than usual across several sectors, including food, manufacturing, and transportation. Budgeting for businesses is usually consensus-driven. Departments throughout the business will submit detailed forecasts. Management will then review these documents within several approval layers. Any revisions implemented are made to be in line with the business’s longterm strategy, rather than short-term gains. This approach aligns with Japan’s business culture, which includes risk management, disciplined planning, and operational continuity. (Source – Gov.uk) 101

OPEN FOR BUSINESS

www.UK-Japan.business This guide is available in four formats:

• Our website: www.UK-Japan.business • This full colour hard-copy brochure • PDF download* • E-flipbook* *(Please see our website for more details)

UK-Japan

Legal Considerations Standards and Regulations Japan’s standards and regulations are in place to ensure that products are safe, that consumers are protected, trade is being carried out fairly, and that businesses are sustainable. It is advised that you talk to a local partner or contact the DBT for further guidance: https://www.gov.uk/world/org anisations/department-forbusiness-and-trade-japan Product Standards All goods must meet the requirements set out by the Ministry of Economy, Trade and Industry (METI), which includes safety, quality, and performance standards. Electronic products must have the correct certification under the PSE (Product Safety Electrical Appliance & Materials) law. If you are exporting automobiles or machinery into Japan, your goods must follow safety, emission and environmental performance regulations. Food and Pharmaceutical Regulations Food products and pharmaceuticals must meet the regulations within the Food Sanitation Act and the Pharmaceutical and Medical Device Act (PMD Act). To comply with Japan’s Good Manufacturing Practices (GMP), medical devices and pharmaceuticals must also gain approval from the Ministry of Health, Labour and Welfare (MHLW). Environmental Regulations To increase Japan’s sustainability, environmental regulations are upheld through the Waste Management and Public Cleansing Act and the Chemical Substances Control Law. It is important that you comply with restrictions on waste materials, emissions, and hazardous chemicals and materials.

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Business Guide Business and Corporate Regulations Businesses must make sure that they are complying with Japan’s taxation, labour and corporate governance laws. Intellectual Property is protected in Japan through patent, trademark and copyright laws, and they are enforced by the Japan Patent Office (JPO): https://www.jpo.go.jp/e/

Consumer Protection Law Japan’s consumer protection law protects customers from false advertising and supports them through disputes. These laws also make sure that consumers have access to fair trade standards. Trade and Import Regulations It is Japan Customs that regulates imports; they require the correct documentation and classification to allow goods into the country. In some cases, goods will be quarantined, or they may be subject to inspections. For more information, see the Japan Customs website: https://www.customs.go.jp /english/ Control Goods Export Licenses Make sure you register through the UK’s Export Control Joint Unit (ECJU) licensing system online, SPIRE: https://www.spire.busines sandtrade.gov.uk/spire/fo x/espire/LOGIN/login This is where you will keep your export records and transfers, so that the ECJU can check them.

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UK-Japan To export controlled goods, you may need an export licence issued by the ECJU. This will be the case if the goods you are exporting are on the UK’s or Japan’s control list. If you need further guidance, contact the Export Control Joint Unit (ECJU) at: https://www.gov.uk/gover nment/organisations/exp ort-control-joint-unit Import Restrictions Items that are banned from entering Japan include: l

Animal products that may have diseases or pests

Counterfeit currency

Counterfeit goods

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Cultural artefacts and antiques (heritage laws)

Restricted Goods Some goods in Japan will have a restricted status; therefore, they may be accepted into the country under certain conditions, including with permits or documentation. Goods that have restrictions placed on them include: l

Endangered species (including products) Firearms, ammunition and explosives

Food products that contain certain additives or ingredients l

Hazardous materials

Illegal drugs and narcotics

Indecent material

Medicines and pharmaceuticals (not approved by the Ministry of Health, Labour and Welfare in Japan)

Plant products that may have diseases or pests Toxic chemicals www.UK-Japan.business

Weapons

Agricultural Products – must comply with the Plant Protection Law and may require quarantine Alcoholic Beverages – may have quantity restrictions, and must have proper documentation Animal Products – approval needed from the Animal Quarantine Service Chemicals/Hazardous Materials – must follow the Chemical Substances Control Law, and require permits Cosmetics - requires Ministry of Health, Labour and Welfare (MHLW) approval, correct labelling and must contain no banned ingredients Cultural Items and Antiques – special permission may be needed under the Law for the Protection of Cultural Properties Electronic Equipment/Devices – must meet the Ministry of Internal Affairs and Communications’ (MIC) technical and safety standards Endangered Species and Animal Products – may need permits under the CITES Convention Food and Drink – must follow the Food Sanitation Act, with no banned additives, preservatives or ingredients Medical Devices – requires Ministry of Health, Labour and Welfare (MHLW) approval

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Pharmaceuticals – requires Ministry of Health, Labour and Welfare (MHLW) approval, correct labelling and must contain no banned ingredients Weapons, Replicas and Self-Defence Equipment – authorisation needed from the National Police Agency

Temporary Import and Free Zones Certain goods can be temporarily exported into Japan under special conditions. For these goods, you do not have to pay customs duties or consumption tax. There is a time period for how long temporary goods can stay in Japan, usually this is 6 months. You must make sure you have customs approval and the correct documentation. Eligible goods include commercial samples, exhibition items, goods for testing, machinery that needs repair, and tools. Free Trade Zones (FTZ) / Customs Special Zones Japan has Special Customs Zones that allow goods to be imported, stored, processed, and re-exported with reduced or removed taxes and customs duties. These zones are located in Tokyo, Yokohama, Osaka and Nagoya, and at ports. Free Trade Zones allow the warehousing, assembly, packaging, and re-exportation of goods. UK businesses can use these zones to reduce their export costs and supply chains. Product Liability Insurance Product liability insurance covers the costs incurred if a product you have sold has been faulty and caused injury. It is important that you take out product liability insurance if you are selling, manufacturing, supplying, or designing physical products.

For more information on product liability insurance, see the Association for British Insurers webpage at: https://www.abi.org.uk/product s-and-issues/choosing-theright-insurance/business-insura nce/liability-insurance/productliability-insurance/ Intellectual Property (IP) It is important to understand that IP is territorial. This means that once you have registered them in a country, they are only protected in that country; to protect them in other countries, you must register them in those countries as well. Therefore, make sure you register your IP in every export market you trade within. When wanting to do business in Japan, you must make sure that you have IP protection in Japan. Make sure you contact a lawyer who specialises in Intellectual Property, as they can help you to register for IP protection. For more information about Intellectual Property in the UK and how to find a local lawyer, visit the UK Government’s website: https://www.gov.uk/guida nce/seeking-intellectualproperty-advice For information on international IP Services, see: https://www.gov.uk/gover nment/collections/interna tional-ip-service Further support can be provided by IP Attachés around the world who can advise UK businesses. For more information, see: https://www.gov.uk/governmen t/collections/uk-overseasintellectual-property-attache-ne twork 105

UK-Japan (Source – Gov.uk, Export Control Joint Unit, Association for British Insurers)

Copyright There are different types of IP protection that are available, including copyrights, trademarks, and patents. Both the UK and Japan adhere to the rules set out in the Protection of Literary and Artistic Works, which is part of the Berne Convention. (Source – Gov.uk)

Taxation Double Taxation Agreement Some countries have a double taxation agreement with the UK. This means that some taxes, when paid in one country, will be deducted from the other country. Therefore, the tax is not paid twice. In 1986, the UK and Japan signed a double taxation agreement. For more information on the UK’s double tax treaty with Japan, see Gov.uk’s website at: https://www.gov.uk/gover nment/publications/japan -tax-treaties Value Added Tax (VAT) Japan does not have VAT; instead, it uses a Consumption Tax (CT) on goods and services. The standard rate is 10%. There is also a reduced rate of 8% for certain newspapers, food, and drinks, which excludes alcohol. Corporate Tax Corporate tax is placed on companies that have their head office in Japan; this tax is on their full income (worldwide). Non-resident companies are only taxed on the income they source within Japan. To determine the tax rate, the corporate tax system takes local, national, and special surtaxes into account. www.UK-Japan.business

Tax Rates National Corporate Tax is typically 23.2% for most corporations. The Local Corporate Inhabitant Tax and the Enterprise Tax, together and depending on location, can be between 10% and 12%. For large companies, the effective corporate tax rate is 30-31%. Small and medium-sized enterprises, or SMEs, may benefit from a reduced tax rate. This applies to the first JPY 8 million of taxable income. Income Tax Residents are taxed on their worldwide income; non-residents are taxed only on the income they earn in Japan. Individuals are subject to the national income tax and any local inhabitant taxes that affect them. National Income Tax ranges from 5% to 45% on employment and business income. There are deductions for certain conditions, including medical expenses, social insurance contributions, dependents, and some business expenses. Local Inhabitant Tax is roughly 10% of an individual's taxable income, which is collected by the local authorities annually. Employment Income Employment income is taxed through an individual's salary, bonuses, or other forms of remuneration. Non-Resident Taxation Non-residents who earn from sources within Japan are taxed at a flat rate of 20-30%. This depends on tax treaties and income type.

Customs and Documentation Documentation Required Documents required for exportation include:

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Customs Declaration Form (Shinkoku-sho) – contains product description, quantity, value and HS code classification

Temporarily Exporting Goods If you want to temporarily export goods to Japan, you may need an ATA Carnet or a Temporary Admission.

Commercial Invoice – contains exporter and importer details, goods description, quantity, price, and incoterms

The ATA Carnet is an international customs document that enables the temporary export of commercial samples, professional equipment, and items for trade shows or exhibitions to participating countries without paying duties or taxes.

Packing List – include weight, dimensions, and descriptions of items Bill of Lading (sea)/Air Waybill (air) – proof of ownership and transportation

For more information and guidance, see: https://www.gov.uk/guidanc e/apply-for-an-ata-carnet

Import Licence/Permit – required for restricted or regulated goods Certificate of Origin – required for preferential tariff Insurance Certificate – optional Inspection Certificate – for food, chemicals or industrial machinery Phytosanitary Certificates – for plants and agricultural products Safety and Compliance Certificates

Complying with HMRC When planning to export goods out of the UK and into Japan, you must make an export declaration to the HMRC’s Customs Declaration Service. To find out how to make a declaration, see: https://www.gov.uk/gover nment/collections/custo ms-declaration-service The Customs Declaration Service website also has information about making payments, commodity codes, duties, VAT, and UK Trade Tariffs.

Labelling Products Japan’s strict labelling regulations on all imported goods ensure that consumers remain safe, that products have transparency, and that competition within sectors is fair. Labelling requirements depend on the product, and all labels should be in Japanese. Most products require: l

Ingredients/materials used

Manufacturer details

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Name and address of the importer or distributor Production or expiration date (where necessary) Quantity, weight, or volume Relevant certification/compliance marks

The country of origin

The product’s name

Usage instructions/handling precautions 107

UK-Japan Labels should also contain clear and accurate details regarding the product. Therefore, the information must be truthful, legible, and not misleading. Make sure labels are affixed to the product or its packaging. Sector-Specific Labelling Regulations Food and beverage labels must follow the requirements in the Food Labelling Act. They must include nutritional information, additives, allergens, and expiry dates. Cosmetics must follow the labelling instructions within the Pharmaceutical and Medical Device Act (PMD Act). You must add the ingredients, storage information, and any warnings. Pharmaceuticals and medical devices must also be labelled under the Pharmaceutical and Medical Device Act (PMD Act). Labels must contain classification, dosage, and ingredients. Electronic equipment must carry the PSE mark (Product Safety Electrical Appliance & Materials) and be labelled under the requirements of the Electrical Appliance and Material Safety Law. Textiles and clothing should be labelled under the Household Goods Quality Labelling Act. You must include the fibre composition and care instructions. Failure to comply with any of these labelling regulations can result in exports being denied entry into Japan. You can also be fined. Make sure you consult with a local partner or contact Japan External Trade Organization (JETRO): https://www.jetro.go.jp/en/

who will be able to help you meet labelling requirements. (Source – Gov.uk, HMRC)

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Shipping Goods Freight Forwarder If you do not have specific knowledge on shipping internationally, it may be a better option for your business to use a freight forwarder. They will have a vast knowledge of shipping overseas and will be able to ship your goods for you. They will also have the necessary information on which documentation will be needed and how to navigate customs. Post Office The UK’s Post Office may be able to help you ship goods to Japan; see their website for more information: https://www.postoffice.co.uk/ mail For information on restricted and banned goods, see: https://www.postoffice.co.uk/ mail/what-can-i-send

Terms of Delivery To minimise any risk of misunderstanding, make sure you have a clear contract written out for all international commercial transactions. A set of widely used commercial terms, known as incoterms, are used in international trade. These clarify the following: l l l l l l

The delivery address for the goods Who will deliver them? Who arranges the transportation? Who handles customs? Who pays/arranges the insurance? Who pays the duties/taxes?

Incoterms are set out by the International Chamber of Commerce (ICC).

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For more information, see their website at: https://iccwbo.org/businesssolutions/incoterms-rules/inco terms-2020/ In regard to services, incoterms do not apply. For services, a Service Level Agreement will be needed. This agreement needs to outline what the service will provide and what will be achieved by it. (Source – Gov.uk, Post Office, International Chamber of Commerce)

To check if UKEF can support your business, see: https://www.ukexportfin ance.gov.uk/who-wecan-help/ For direct inquiries, contact UKEF at: https://www.ukexportfin ance.gov.uk/contact-us/

(Source – UKEF)

UK Export Finance UK Export Finance is the UK Government’s export credit agency, which supports prosperity in the UK through guiding businesses on exporting. UKEF partners with lenders and insurers to make sure that UK businesses get the help they need to access finance and insurance so that they can successfully export within the global market. The agency helps exporters to secure international contracts by offering overseas buyers guarantees that it will be easier to buy from UK businesses. UKEF also helps businesses to fulfil orders and to successfully take on new or larger contracts. Whilst providing protection against the risk of non-payment. UKEF works closely with the Department for Business and Trade and reports to the Secretary of State for International Trade and the Minister for Exports, to help UK businesses of all sizes and within all sectors expand into international markets. For more details about available products and services, visit: https://www.ukexportfin ance.gov.uk/productsand-services/

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Backing you to go global with UK Export Finance.

Government-backed trade 昀nance. Insurance to export with con昀dence. Tailored support from regional Export Finance Managers. If you’re looking to do business overseas, UK Export Finance can help you access the support you need. Get started at ukexport昀nance.gov.uk

UK Export Finance (UKEF) is a UK government ministerial department and the nation’s export credit agency (ECA). UKEF helps exporters access working capital and manage the risk of not getting paid by offering a government guarantee. It partners with private sector finance providers to grow UK exports and international trade. UKEF supports companies of all sizes and multiple sectors across the UK.

It helps UK companies: win export contracts by guaranteeing finance to buyers so they can source from the UK fulfil more orders by unlocking working capital to take on new or higher value contracts get paid for their products and services with insurance against buyer default UKEF has regional Export Finance Managers on hand to provide free and impartial consultations to local businesses on their export finance needs. UKEF’s global network is also on hand to discuss financing options available to international buyers so that they can source goods and services from the UK.

For up to date country specific information on the support available, see UK Export Finance’s country cover policy and indicators at: www.gov.uk/guidance/country-coverpolicy-and-indicators Details for Japan are available at: www.gov.uk/guidance/country-coverpolicy-and-indicators#japan Get in touch Find out more about UKEF’s products and read success stories, describing real-life examples of UKEF support. Get in touch to see if UKEF can help your business.

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Business Etiquette, Language and Culture

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Business Etiquette, Language and Culture Business Culture Creating relationships and gaining trust are important elements for Japanese companies to establish long-term collaboration with foreign businesses, including those in the UK. Be aware that decisions can take longer than those in the UK, as they are made through consensus. This is to ensure that decisions have been carefully considered. Final decisions are heavily influenced by senior staff members, as Japanese businesses tend to follow a hierarchical structure. Within business in Japan, certain traits are highly valued, including reliability, respect, humility, punctuality and attention to detail. All of these are essential for doing business in Japan and will boost your credibility within the country.

Business Etiquette A slight bow is the typical greeting in Japan, rather than a handshake, although this is becoming increasingly acceptable, especially in international settings. Meishi, or the exchanging of business cards, is an important part of meetings with your Japanese counterparts. When you present your card, you must hold it with both hands, similarly when you receive a business card. Make sure you study any business card you have been given, as this is a sign of respect. When in a meeting, don’t interrupt, be patient, and make sure you remain polite and non-confrontational. Gifts are common in some aspects of Japanese business, such as when you are visiting a company for the first time. However, make sure they are small gifts, www.UK-Japan.business

such as something symbolic of the UK. Be aware that giving or accepting elaborate gifts may be seen as bribery, and this is illegal for UK businesses to take part in.

Business Attire Attire in professional business settings in Japan should be formal and conservative. It is important to dress neatly and respectfully. Men should wear dark suits, white shirts and a tie. Women should wear dark or neutral business suits, dresses, or a skirt with a blouse. Bright colours and casual attire are not usually seen as appropriate for formal business meetings and settings.

Language Japanese is the official language used in Japanese business, although English is widely spoken within multinational corporations. Product labels, contracts and many other formal documents must be written in Japanese, though it may be helpful to have a translated copy in English as well. You can show respect by learning a few simple Japanese greetings and phrases. It is advised that you hire a translator who can help prevent any misunderstandings in communication, for both written and verbal communication.

Business Hours Business hours in Japan are usually 9am to 5:30pm, Monday to Friday. Some sectors will work different or longer hours. When planning meetings, make sure they are within these hours, that you schedule them in advance, and that you arrive on time.

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UK-Japan

What are the Challenges?

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What are the Challenges? Challenges UK businesses should be aware that there may be potential challenges when wishing to do business with Japan. These include: Language Barrier Japanese is the official language of business in Japan, although English is widely used within multinational corporations. Communication can become difficult if you are working with traditional or smaller firms. Therefore, it is advised that you hire a translator, who will be able to prevent any misunderstandings with contracts, negotiations, and decision-making. Cultural Differences In the UK, businesses are accustomed to fast-paced decision-making and direct communication. In Japan, decision-making can be much slower as they are made through a group consensus. It is also important that you understand Japanese cultural cues, etiquette and expectations in business, in order to prevent any misunderstandings that can ruin relationships and tarnish your respect. Complex Regulatory Environment Certain sectors, such as cosmetics, electronics, food, finance and pharmaceuticals, all have strict laws and regulations. Meaning that you may have to apply for and obtain permits, certificates, and documents, as well as complying with labelling rules and safety standards, before you can export your goods into Japan. This can be time-consuming and costly; it is advised that you seek local support and guidance. Or contact the UK’s

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Department for Business and Trade, at: https://www.gov.uk/world/org anisations/department-forbusiness-and-trade-japan Market Competition Japan has a very competitive market. Many domestic companies have very high standards and are well established. Japanese customers have high expectations, and within the country, many are loyal to the brands they deem to meet these expectations. Therefore, if you wish to do business in Japan, you must uphold and offer highquality goods and differentiated products. It is advised that you invest in marketing and local partnerships to gain traction within the Japanese market. High Operational Costs In Japan’s major cities, including Tokyo and Osaka, renting office space, labour, and logistics can become very expensive. Make sure you set aside a reasonable budget for premises, staff, and operational expenses. The Japanese market can be more expensive to enter when compared to other Asian markets. Relationship Building and Trust It is crucial to build trust in Japan, as they appreciate long-term relationships over quick deals. Therefore, you need to repeatedly interact and meet your Japanese counterparts. This requires patience and time; however, many businesses agree that this is important to create established ties to the Japanese market. Be aware that initial meetings do not necessarily mean a contract will be put in place. Make sure you invest in your relationships with Japanese businesses, and make sure you take time to network.

Business Guide Ageing Population Japan has a declining and ageing population, which can cause challenges due to the shrinking workforce, and certain sectors may suffer from a slower market. Decision-Making Process Decision-making can be slow due to companies relying on a group consensus and multiple levels of approval through the hierarchical structure. Negotiations can be slow, and it can take time for contracts to be finalised and signed.

Bribery and Corruption If you are a UK national, you normally reside in the UK, a business/organisation/ charity that works in the UK, or a Scottish Partnership, it is illegal for you to use bribery either in the UK or abroad, including in Japan. For more information on the UK’s antibribery laws, visit the UK Government’s website: https://www.gov.uk/antibribery-policy

(Source – Gov.uk)

Intellectual Property It is important to understand that IP is territorial. This means that once you have registered them in a country, they are only protected in that country; to protect them in other countries, you must register them in those countries as well. Therefore, make sure you register your IP in every export market you trade within.

Make sure you contact a lawyer who specialises in Intellectual Property, as they can help you to register for IP protection. For more information about Intellectual Property in the UK and how to find a local lawyer, visit the UK Government’s website: https://www.gov.uk/guidance/s eeking-intellectual-propertyadvice For information on international IP Services see: https://www.gov.uk/governme nt/collections/international-ipservice Further support can be provided by IP Attachés around the world who can advise UK businesses, for more information see: https://www.gov.uk/governmen t/collections/uk-overseasintellectual-property-attache-ne twork (Source – Gov.uk)

Protective Security Advice The UK Government has guidance on protective security, including information related to crime and fraud protection in regard to international trade. To view this guidance, see their website at: https://www.gov.uk/guidance/ crime-and-fraud-preventionfor-businesses-in-international -trade (Source – Gov.uk)

When wanting to do business in Japan, you must make sure that you have IP protection in Japan.

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Useful Links

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Useful Links UK Organisations bizNis International: https://www.biznis.international/ British Chamber of Commerce in Japan (BCCJ): https://bccjapan.com/ British Chambers of Commerce: www.britishchambers.org.uk/ British Council: www.britishcouncil.org/

Business Guide Department for Business and Trade Japan: https://www.gov.uk/world/orga nisations/department-forbusiness-and-trade-japan Export Control Joint Unit (ECJU): www.gov.uk/government/organ isations/export-control-jointunit Export to Japan Hub: https://exporttojapan.co.uk/ Foreign, Commonwealth and Development Office (FCDO): https://www.gov.uk/governmen t/organisations/foreigncommonwealth-development-o ffice

British Embassy Tokyo: https://www.gov.uk/world/orga nisations/british-embassytokyo

HM Revenue and Customs: www.gov.uk/government/organ isations/hm-revenue-customs

British Expertise International: www.britishexpertise.org/

Intellectual Property Office (IPO): www.gov.uk/government/organ isations/intellectual-propertyoffice

British Insurance Brokers’ Association: www.biba.org.uk/ Business.gov.uk: https://www.business.gov.uk/

Confederation of British Industry (CBI): www.cbi.org.uk/ Department for Business and Trade (DBT): www.gov.uk/government/organ isations/department-forbusiness-and-trade www.UK-Japan.business

Organisation for Economic Co-operation and Development (OECD): www.oecd.org/en.html UK Border Control: www.gov.uk/uk-border-control UK Export Finance: www.ukexportfinance.gov.uk/

Japanese Organisations Embassy of Japan in the UK: https://www.uk.embjapan.go.jp/itprtop_en/index.html 123

Global Commerce Navigators

is a community created by independent international trade specialists, eCommerce leaders and SMEs specifically to share the drive to shape the future of global business. This unique network champions expert-led innovation, practical insights and peer-to-peer support, connecting those driving real progress across borders in today’s digital world. Our membership covers all aspects of overseas trade including business support, market entry, sales and marketing, regulation & compliance, customs, tax & VAT and logistics. As a non-public sector organisation, we are not motivated to achieve targets. Consequently, we have the freedom to oﬀer impartial support and advice to our members and the wider international trade sectors.

www.globalcommercenavigators.org

UK-Japan Japan Customs: https://www.customs.go.jp/engl ish/ Japan External Trade Organisation (JETRO): https://www.jetro.go.jp/en/ Japan Patent Office (JPO): https://www.jpo.go.jp/e/

Other

Ministry of Foreign Affairs of Japan: https://www.mofa.go.jp/j_info/v isit/visa/long/index.html Association for British Insurers: https://www.abi.org.uk/product s-and-issues/choosing-theright-insurance/business-insura nce/liability-insurance/productliability-insurance/ British Standards Institution (BSI): www.bsigroup.com/en-GB/ Consumer Rights Act (UK): www.legislation.gov.uk/ukpga/2 015/15/contents Crime and Fraud Prevention: www.gov.uk/guidance/crimeand-fraud-prevention-for-busin esses-in-international-trade Driving Abroad: https://www.gov.uk/drivingabroad E-Visa: https://www.gov.uk/evisa/setup-ukvi-account GHIC/EHIC: www.nhs.uk/using-thenhs/healthcare-abroad/apply-f or-a-free-uk-global-healthinsurance-card-ghic/ www.UK-Japan.business

Business Guide Incoterms: https://iccwbo.org/businesssolutions/incoterms-rules/incot erms-2020/ International Language Association: http://icc-languages.eu/ Office for National Statistics: www.ons.gov.uk/ OGEL: https://www.gov.uk/governmen t/collections/open-generalexport-licences-ogels Renew Passport: www.gov.uk/renew-adultpassport/renew SPIRE: https://www.spire.businessandt rade.gov.uk/spire/fox/espire/LO GIN/login Tax Treaties: https://www.gov.uk/governmen t/publications/japan-taxtreaties Travel Health: www.travelhealth.co.uk/ Travel Insurance: www.gov.uk/guidance/foreigntravel-insurance TravelHealthPro: https://travelhealthpro.org.uk/

World Intellectual Property Organization (WIPO): www.wipo.int/portal/en/index.h tml

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BUSINESS BEYOND BOARDERS

Global Expansion. Strategic Connections. Measurable Growth.

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UK-Japan

Our work helps to identify the most eﬃcient ways for British Companies to trade with, and invest in, opportunity-rich overseas markets.

Get In Touch Tel: (+44) 01298 402161 / Email: info@doingbusiness.org.uk

www.DoingBusiness.org.uk www.UK-Japan.business

Business Guide

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UK-Japan

Contact Details

Doing Business Group International House Hogshaw Buxton SK17 7AX UNITED KINGDOM Tel: (+44) 01298 402161 Email: info@doingbusiness.org.uk www.DoingBusiness.org.uk

British Chamber of Commerce in Japan WORK STYLING Midtown Tower 18F, 9-7-1 Akasaka Minato-ku, Tokyo, 107-0052 Tel: 03-4560-4190 Email: info@doingbusiness.org.uk https://bccjapan.com/

www.UK-Japan.business

Business Guide

British Embassy Tokyo Japan 〒102-8381 Tokyo Chiyoda City, Ichibancho, 1 https://www.gov.uk/world/organisa tions/british-embassy-tokyo

Embassy of Japan in the UK 101-104 Piccadilly London W1J 7JT Tel: +44-(0)20 7465 6500 https://www.uk.embjapan.go.jp/itprtop_en/index.html

JETRO Cheapside House 138 Cheapside London EC2V 6BJ Tel: 020 7421 8300 Email: ldn_invest@jetro.go.jp www.jetro.go.jp/uk

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UK-Japan

Cliﬀord Chance Palace Building, 3rd floor, 1-1, Marunouchi 1-chome, Chiyoda-Ku, Tokyo 100-0005, Japan Tel: +81366326600 www.cliﬀordchance.com/home.html

Colliers International Japan KK Marunouchi Nijyubashi Building 18F 3-2-3 Marunouchi, Chiyoda-ku Tokyo 100-0005. Japan Tel: +81 3 4540 8600 Email: jpmarcom.pr@colliers.com www.colliers.com/en-jp

EY Japan Email: Inboundtaxandlegalservices@jp.ey.com www.ey.com/en_jp

Freshfields Akasaka Biz Tower 36F, 5-3-1 Akasaka Minato-ku, Tokyo 107-6336. Japan Tel: +81 3 3584 8500 www.freshfields.com Hays Specialist Recruitment Japan K.K. Tokyo Office (Head Office) Izumi Garden Tower 38th Floor, 1-6-1 Roppongi Minato-ku, Tokyo 106-6038 Email: info@hays.co.jp Yokohama Office Queen’s Tower A, 4F 2-3-1 Minatomirai, Nishi-ku, Yokohama Kanagawa 220-6004 Email: yokohama@hays. co.jp www.UK-Japan.business

Osaka Oﬃce Hilton Plaza West Oﬃce Tower 11F, 2-2-2 Umeda, Kita-ku, Osaka 530-0001 Email: osaka@hays.co.jp www.hays.co.jp

Business Guide

Japan House London 101-111 Kensington High Street, W8 5SA Tel: +44 (0)20 3972 7100 Email: Partnerships@JapanHouseLondon.uk www.japanhouselondon.uk

Rugby School in Japan 6-2-5 Kashiwanoha, Kashiwa Chiba, 277-0882 Tel: +81 (0) 471 68 0536 Email: admissions@rugbyschooljapan.ed.jp www.rugbyschooljapan.ed.jp

Standard Chartered Bank Tokyo Branch www.sc.com/jp

Synnovate Cosmo Spazio 103, Kamiuma 5-35-17 Setagaya, Tokyo, Japan 154-0011 Tel: +81-90-2669-1123 Email: timothy.connor@synnovate.jp www.synnovate.jp

Withers 21F JA Building, 1-3-1 Otemachi Chiyoda-Ku, Tokyo 100-6821 Tel: +81 3 6810 2560 Email: tk.enquiries@withersworldwide.com www.withersworldwide.com

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UK-Japan

www.UK-Japan.business

Business Guide

Quick Facts

Location: Eastern Asia, an island chain between the North Pacific Ocean and the Sea of Japan, east of the Korean Peninsula. Area: 377,915 km2 Population: 122.656 million (2026) Urban Population: 92% (2026) Real GDP: £3.27 trillion (2026) Languages: Japanese Religions: Shintoism 48.6%, Buddhism 46.4%, Christianity 1.1%, other 4% (2021). Government Type: Parliamentary Constitutional Monarchy. Legal System: Civil law system based on the German model; also reflects Anglo-American influence and Japanese traditions; the Supreme Court reviews legislative acts.

Currency: Japanese Yen Climate: Varies from tropical in the south to cool temperate in the north. Time Difference: UTC+9 Internet Country Code: .jp National Holidays: Japan has 16 national public holidays each year, including the birthday of Emperor Naruhito, 23rd February (1960). Businesses should also be aware of Golden Week in late April/early May and the Obon period in August, when many organisations operate with reduced staffing or close. National Symbols/Colours: red sun disc, chrysanthemum, red, and white.

(Source – CIA World Factbook, IMF, World Bank ) 135

UK-Japan Business Guide 2nd Edition