When a foreign company establishes a company in Japan, it may be required to file a report with the Bank of Japan pursuant to the Foreign Exchange and Foreign Trade Act (FEFTA).

Specifically, if a foreign company or a non-resident individual acquires 10% or more of the voting rights in the newly established Japanese company, it is, in principle, required to submit a post-investment report on inward direct investment within 45 days from the date of company registration. (Note: Certain industries may require prior notification under applicable laws and regulations.)

This report must be submitted to the Minister of Finance and the competent minister through the Bank of Japan.

Failure to fulfill the reporting obligation may constitute a violation of the FEFTA. It is therefore important to take appropriate measures, including consultation with legal professionals.