Is Japan Still a Great Place for Business?
The Land of the Rising Sun has experienced its fair share of economic ups and downs throughout its long history. After an economic miracle that propelled Japan to become the world’s second-largest economy during the 50s to the start of the 90s, a long period of stagnation followed.
Fast-forward to today, Japan still has the third-largest economy and is also home to many multinational companies like Sony, Toyota and Softbank. The country has developed into one of the most prosperous places in the world despite having a lack of natural resources and a mountainous terrain. Even though Japan had previously struggled to attract investors, the improving business environment offers increasingly more opportunities for foreign corporations.
5 Reasons to Invest in Japan:
1. Large Stable Economy
With a GDP of around 5 Trillion USD and one of the world’s highest per capita incomes, the strength of the Japanese economy is exceptional. A strong economy coupled with a low fluctuating currency will provide potential investors with stability and confidence. The excellent infrastructure and developed industry means that all the necessary framework is already available for businesses.
2. Attracting Foreign Businesses & Foreign Direct Investment (FDI)
Japan is implementing various measures to make the business environment more attractive to foreign companies:
- Five Promises for Attracting Foreign Businesses to Japan
- Remove language barriers at local retailers and restaurants
- Installation of free public Wi-Fi around cities
- Regional airports receive business jets with short advance notices
- Enrich the educational environment for children from overseas
- Strengthen consultation services for foreign businesses
- FDI Attraction Methods
- Simplifying regulations for foreign companies
- Improving the living environment for foreigners
- Reduce the period of residence required for Highly Skilled Professionals to apply for permanent residency
3. Innovative People
Housing some of the world’s most recognisable companies like Nintendo and Canon, Japan has long been a country full of people with imagination and innovation. A smart and hard-working population will offer companies plenty of productivity.
4. The Rise of Asia
Being the first country in Asia to industrialise, Japan had a headstart in development. With other Asian countries developing at an astronomical pace, growing emphasis will be placed on the region as it grows in importance. The rise of China this decade has already shifted the importance east, and Japan is likely to become one of the beneficiaries of this swing.
5. Abenomics
With Prime Minister Shinzo Abe enacting multiple policies to reform the Japanese economy, we can expect private enterprises to benefit greatly. The emphasis placed on economic growth and more components to encourage investment, including easing of hiring foreign staff and corporate governance reforms will propel opportunities for businesses.
Why You Should Partner with Local Experts
Before expanding your business into Japan there are still a few considerations you should keep note. The cultural differences, language barrier and business protocols can differ from what foreign companies are accustomed to. However, these reasons should not cause you to shy away from setting foot in the country, as they can be easily resolved.
Outsourcing your payroll is an excellent way to negate any potential issues you could encounter. Partnering with a trusted payroll vendor will help you save time on HR tasks and relieve some of the financial burdens that come with expanding overseas. Professional payroll experts also have excellent local knowledge on labour laws and regulations, ensuring your business is always compliant with local protocols. Save time, money and focus your efforts on your expansion with the right partnership!
3 Key Takeaways
Japan Still Offers Excellent Business Opportunities
The country’s excellent infrastructure, strong economy and reforms offer a fantastic business environment for companies. As the Japanese government continues its reforms to attract foreign enterprises and investment, we can expect the opportunities in Japan to continue to grow!
Partner with Professionals to Navigate Local Regulations
Although evolving to become more attractive for foreign businesses, Japan’s regulations and culture can differ quite drastically from other nations. To eliminate the chances of non-compliance and reduce time-consuming tasks, partnering with professionals will give you all the local insights you need!
Outsource Your Payroll to Reduce Costs in Japan
If you are planning to expand into another country, outsourcing your payroll is a great way to reduce costs and save time. Links International has expanded its presence in Japan! Partner with us now to save time on navigating regulations and money from payroll outsourcing. Streamline your operations with Links, then focus all your efforts on your expansion and growing your business.
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