Japan Announces Amendments to the Investment Trust and Corporation Act

The Financial Services Agency (FSA) has announced amendments to Japan’s Investment Trust and Corporation Act, which are significant for foreign entrepreneurs and investors aiming to engage with Japan’s financial market. These changes are designed to enhance transparency and efficiency, potentially impacting compliance requirements and investment strategies for foreign entities.

Background & Context

The Investment Trust and Corporation Act (Shintaku to Toshi Hojin Ho) regulates the establishment and operation of investment trusts and corporations in Japan. The recent amendments, effective from September 21, 2026, were introduced by the Financial Services Agency (FSA) to improve the regulatory framework of these financial instruments. This initiative aligns Japan’s financial regulations with international standards, aiming to foster a more attractive investment environment.

How This Affects Your Business in Japan

Item	Cost (JPY)	Cost (USD approx)	Notes
Company Registration	¥150,000	$1,000	Standard registration cost
Notary Fee	¥50,000	$335	For document notarization
Visa Application	¥4,000	$27	Application fee for Business Manager visa

1. Foreign Residents Already Operating a Business in Japan
For those already engaged in investment activities, it is crucial to review the new regulations to ensure compliance. This may involve updating internal policies and practices to align with the amended rules. Failure to comply could result in penalties or restrictions on investment activities. It is advisable to consult with a legal expert specializing in Japanese financial regulations to navigate these changes effectively.

2. Foreign Nationals Planning to Establish a New Company
For prospective business owners, understanding these amendments is vital for strategic planning. The changes may influence the types of investment structures available and the regulatory requirements for setting up investment trusts or corporations. It is recommended to prepare necessary documentation, including a business plan and compliance strategy, prior to application. Engaging with a local legal advisor can facilitate this process and ensure adherence to the new regulations.

3. Foreign Investors Who Are NOT Residents of Japan
Non-resident investors must be aware of how these regulatory changes could impact their investment strategies in Japan. The amendments may affect the types of investments that are permissible and the reporting requirements for foreign entities. It is essential to conduct thorough due diligence and possibly adjust investment portfolios to align with the new legal landscape. Consulting with financial advisors familiar with Japanese regulations is advisable to mitigate risks associated with non-compliance.

Step-by-Step: What You Need to Do

Step 1: Review the Amended Regulations
Obtain the latest version of the Investment Trust and Corporation Act and familiarize yourself with the changes. Contact the Financial Services Agency (FSA) for guidance. English support is available.
Office: FSA (English Support: Yes)
Cost: Free (¥0)
Time: 1-2 weeks
Pitfall: Overlooking minor amendments

Step 2: Assess Compliance Needs
Evaluate your current business practices against the new regulations. Consult with a legal expert specializing in Japanese financial law.
Office: Legal Consultant (English Support: Yes)
Cost: ¥100,000 (~$670 USD)
Time: 2-4 weeks
Pitfall: Incomplete compliance assessment

Step 3: Update Internal Policies
Revise your company’s internal policies and procedures to align with the new requirements. This may involve drafting new compliance documents.
Office: Internal Administration (English Support: Limited)
Cost: ¥50,000 (~$335 USD)
Time: 2-3 weeks
Pitfall: Delayed policy updates

Step 4: Prepare Necessary Documentation
If establishing a new investment trust or corporation, prepare all required documents, including business plans and compliance strategies. Contact the FSA for specific requirements. English support is available.
Office: FSA (English Support: Yes)
Cost: ¥30,000 (~$200 USD)
Time: 4-6 weeks
Pitfall: Missing documentation

Step 5: Submit Applications
Submit your application for establishing an investment trust or corporation to the FSA. Ensure all documents are complete to avoid delays.
Office: FSA (English Support: Yes)
Cost: ¥20,000 (~$135 USD)
Time: 1-2 weeks
Pitfall: Incomplete application

Step 6: Monitor Compliance
After establishment, continuously monitor compliance with the new regulations and adjust practices as necessary. Regular consultations with legal advisors are recommended.
Office: Legal Consultant (English Support: Yes)
Cost: ¥10,000 (~$67 USD) monthly
Pitfall: Neglecting ongoing compliance

Key Contacts
www.jetro.go.jp/en/
www.moj.go.jp/isa/
houmukyoku.moj.go.jp
www.customs.go.jp/english/
www.nta.go.jp/english/
www.meti.go.jp/english/
www.fsa.go.jp/en/

Expert Analysis: Japan vs. Regional Competitors

Metric	Japan	Singapore	Hong Kong	South Korea
Incorporation Time	2-3 weeks	1-2 days	1-2 days	1 week
Minimum Capital Requirement	¥1	S$1	HK$1	₩100
Corporate Tax Rate	23.2%	17%	16.5%	22%
Visa Processing Time	1-3 months	1-2 weeks	1-2 weeks	1 month

What to Expect Next

Looking ahead, Japan is expected to continue refining its financial regulations to attract more foreign investment. Stakeholders should watch for further amendments to the Investment Trust and Corporation Act and related legislation in the coming years. Additionally, the FSA may introduce new guidelines or support initiatives aimed at facilitating foreign investment. Key timelines to monitor include potential announcements in 2027 regarding further regulatory reforms and the establishment of new investment incentives.

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Sources & References

This article is based on the following source and enhanced with professional analysis for foreign business owners.
Source: 投資信託及び投資法人に関する法律施行規則の一部を改正する内閣府令の公布及びパブリックコメントの結果について公表しました。

⚠️ This article is for informational purposes only and does not constitute legal advice. Please consult a qualified Japanese attorney (bengoshi) or judicial scrivener (shiho shoshi) for advice specific to your situation.