Japan is the third largest economy in the world, which makes it quite an eye-catching destination for business owners. Expanding to Japan will allow companies access to many other Asian markets. Kavan Choksi mentions that the government of Japan has recognized the lack of FDI (foreign direct investment) in the nation and has subsequently taken steps to become more supportive of foreign companies wanting to start their business there. Choksi is a reputed finance and business expert.
Kavan Choksi talks about certain reasons why people should consider expanding their business to Japan
Japan, also referred to as the Land of the Rising Sun has witnessed its fair share of economic ups and downs throughout its long history. Subsequent to an economic miracle that propelled Japan to become the second largest economy in the world during the 50s to the start of the 90s, the country, unfortunately, did go through a long period of stagnation. Fast forward to the current times, Japan has managed to be the second largest economy in the world, and is home to a number of multinational businesses. This nation has developed into one of the most prosperous places on the planet, despite having a mountainous terrain and lack of natural resources. Even though Japan had previously struggled to magnetize investors, its improving and flourishing business environment does provide increasing opportunities for foreign corporations.
Japan is located in the northwest Pacific Ocean and is bordered on the West by the Sea of Japan. It extends from the Sea of Okhotsk in the North toward the Philippine Sea, the East China Sea, and Taiwan in the South. Its strategic location allows businesses to access some of the most well-development business hubs of Asia. This country offers extensive access to Asian flight markets. Japan was one of the first countries in Asia to industrialize, and hence has a head start to development. As other Asian nations develop at a rapid pace, an increased emphasis would be put on the growth and development of Japan owing to its high importance.
Japan is a pretty business friendly nation in regard to formalities and regulations. In fact, it was ranked 29th in the world when it comes to ease of doing business in 2021, the government has established “Invest Japan Business Support Centers (IBSCs)” within JETRO (Japan External Trade Organisation). They serve as support centers and provide valuable information on investment procedures to foreign businesses starting in Japan. Kavan Choksi mentions that several other methods have also been undertaken to attract FDI in Japan, including simplifying regulations for foreign companies and improving the living environment for foreigners. The period of residence required for Highly Skilled Professionals to apply for permanent residency in the country has also been reduced.
The low rate of corruption in Japan is another factor that makes it an advantageous destination. As per 2019 Corruption Perceptions Index, it was the 20th least corrupt nation out of 180 countries. After one manages to establish their business in Japan, they are also likely to enjoy a high level of customer loyalty. Once its locals understand that a company is reputable and adds value, they shall appreciate the work done.