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An Introduction to FEFTA for Foreign Startups Considering Entry into Japan

by：Kensho Onoda、Watchaya Peungnam [toc] Japan’s Foreign Investment Regulations (overview) When acquiring a company, making an investment, or taking over a business in Japan, some countries only require consideration of company law, competition law, or investment agreements. In contrast, Japan’s Foreign Exchange and Foreign Trade Act, commonly known as the FEFTA, is also crucial. The FEFTA does not generally prohibit investment in Japan itself. However, it establishes a system where authorities can review certain investments in advance if they relate to national security, public order, public safety, or the Japanese economy. This is the first point of caution for foreign startups….

2026/05/14

Global

GVA Global LPC

Cross-border Transfer of Personal Data

by：Kensho Onoda、Poom Kerdsang [toc] Introduction When foreign startups expand into Japan, their Japanese operations frequently need to transfer data back to the home country. Typical examples include centrally managing Japanese customer data on a headquarters server or having the home country’s engineering team analyze Japanese user data. This article explains key points to be aware of under the APPI when conducting cross-border transfers of personal data. It highlights Japan’s unique regulatory framework and differences from the EU’s GDPR. Overview Under the APPI, providing personal data to a “third party located abroad” is subject to special regulations compared to ordinary third-party…

Regulation of Business Outsourcing in Japan : the Amendment to the Subcontract Act

2026/03/26

Global

GVA Global LPC

Regulation of Business Outsourcing in Japan : the Amendment to the Subcontract Act

by：Kensho Onoda、Poom Kerdsang [toc] What is the Act on the Amended Subcontract Act? The Act Against Delay in Payment of Fees, etc. to Small and Medium-sized Entrusted Business Operators in Manufacturing and Other Specified Fields (the “Amended Subcontract Act”) is designed to protect small and medium-sized enterprises (SMEs) and ensure transaction fairness. Previously known as the Subcontract Act, the legislation was substantially amended and renamed, with the new regulatory framework taking effect on January 1st, 2026. The Amended Subcontract Act imposes certain restrictions on the principle of contractual freedom, mandating specific obligations and prohibitions on the Entrusting Business Operator. Therefore,…

Navigating Contract Law in Japan: A Guide to Civil vs. Common Law for Startups

2026/02/26

Global

Corporate legal affairs for listed companies

GVA Global LPC

Navigating Contract Law in Japan: A Guide to Civil vs. Common Law for Startups

by：Kensho Onoda、Poom Kerdsang [toc] Introduction Establishing a business in Japan requires navigating a legal landscape fundamentally different from other countries. A core premise is that Japan operates under a Civil Law system, distinct from the Anglo-American Common Law tradition. Contract under Civil Law 1. Civil Law Characteristics Civil law is a legal system developed primarily in France and Germany. It is characterized by a comprehensive legal order built around codified statutes. Japan’s Civil Code, enacted in the late 19th century, was also significantly influenced by the German and French Civil Law systems. Consequently, Japanese legal practice begins by considering “which…

Overview of Japan’s Personal Information Protection Law

by：Kensho Onoda、Poom Kerdsang [toc] Summary Introduction Japan’s Act on the Protection of Personal Information (“APPI”) is a comprehensive data protection framework designed to balance the protection of individual (data subject) rights while promoting the effective use of data. APPI imposes obligations such as specifying and notifying the purpose of use, prohibiting use beyond the specified purposes, implementing security safeguards, restricting the provision of personal information to third parties, and responding to requests from individuals. While APPI shares similarities with other major data protection regimes, including the GDPR, it also incorporates several unique concepts, such as “Personal Related Information”, that require…

2025/11/13

Global

Corporate legal affairs for listed companies

GVA Global LPC

JAPAN Corporate Governance Structure

by：Kensho Onoda、Poom Kerdsang [toc] Introduction One of the most important initial decisions when establishing a corporation in Japan is to decide on an appropriate corporate governance structure. The corporate governance structure determines how decision-making, business execution, and oversight are structured within the company. Under Japan’s Companies Act, companies have a certain level of flexibility in selecting and combining governance bodies, provided that the statutory requirements are met. An effective governance structure should reflect the company’s size, capital composition, and shareholder relationships. This article provides a detailed explanation of the fundamental concepts of corporate governance structure, available legal framework, and practical…

2025/10/31

Advertising Regulations

GVA Global LPC

Marketing Regulations Part 1: Navigating Japan’s Advertising Regulations: Restrictions on Advertising Claims

by：Kensho Onoda、Poom Kerdsang [toc] 0. Introduction Advertising and marketing activities in the Japan are subject to strict consumer protection rules. At the center of these rules is the Act against Unjustifiable Premiums and Misleading Representations (the “Premiums and Representations Act”). This article focuses particularly on the Act’s regulation of representations (“advertising claim”), outlining the its objectives, regulatory requirements, violation consequences and risks, as well as key considerations for foreign companies seeking to enter the Japanese Market. 1. Overview The Premiums and Representations Act was enacted in 1962 and is administered by the Consumer Affairs Agency as part of Japan’s consumer…

Choosing the Right Corporate Form in Japan: Kabushiki Kaisha (K.K.) vs. Godo Kaisha (G.K.)

Choosing the Right Corporate Form in Japan: Kabushiki Kaisha (K.K.) vs. Godo Kaisha (G.K.)

by：Kensho Onoda、Poom Kerdsang [toc] Introduction Foreign companies and entrepreneurs expanding into Japan often face a unique choice between two types of limited liability companies: Kabushiki Kaisha (K.K.) and Godo Kaisha (G.K.). While both forms protects owners with limited liability, they differ significantly in key respects such as incorporation costs, operational flexibility, social credibility, and fundraising capacity. Understanding these differences is crucial for selecting the structure that best aligns with your business objectives in Japan. This article explains the features of each and offers practical guidance to help businesses make the right choice. 1. Historical Background and Basic Structure Kabushiki Kaisha…

Comparison of Japan Business Entry Methods

Comparison of Japan Business Entry Methods

by：Kensho Onoda、Poom Kerdsang [toc] Introduction The Japanese market, with its scale, consumer purchasing power, and high technological capabilities, is an attractive investment destination for many companies, including overseas startups. However, Japan’s legal system and business practices can differ significantly from those abroad. Choosing the right base structure for market entry is a crucial strategic decision that can significantly impact future business development. This column explains the characteristics, advantages, and disadvantages of four main forms that foreign companies should consider when entering Japan: establishing a subsidiary, setting up a branch office, opening a representative office, and acquiring a local corporation….

Legal considerations for foreigners conducting recruitment in Japan

2025/09/05

Global

GVA Global LPC

Legal considerations for foreigners conducting recruitment in Japan

by：Kensho Onoda、Poom Kerdsang 1. Methods of Recruitment When hiring personnel in Japan, foreign companies can utilize services broadly categorized into “public agency support” and “private services.” 1-1. Support from public agencies The most representative example is the Public Employment Service (called “Hello Work”), administered by the Ministry of Health, Labour and Welfare. Hello Work offices are located nationwide and provide free job matching services for all occupations. By submitting job postings, companies can reach a wide range of job seekers, and Hello Work also serves as a window for procedures related to labor insurance. At Hello Work, communication is generally…

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