Resident Directors No Longer Necessary for Corporations in Japan

On March 16, 2015, the Ministry of Justice in Japan (the “MoJ”) repealed an old policy and announced they would accept incorporation applications with respect to all forms of Japanese corporate entities regardless of whether that entity has a local director or not.[1] This step was taken as part of the current Abe administration’s stated intention to relax certain regulations and encourage foreign investment into the Japanese economy. Effectively, a foreign entity looking to set up in Japan can now choose between appointing a local representative, registering as a foreign company, and incorporating in Japan without necessarily appointing any one resident in Japan as a director of such company. Strictly speaking, there was never any statutory requirement th