When a foreign company or a non-resident individual establishes a company in Japan, it is generally sufficient to submit a post-investment report on inward direct investment after the company is established.

However, if the business to be conducted by the newly established company in Japan includes any designated industries that are subject to regulation for reasons such as national security or public health, prior notification under the Foreign Exchange and Foreign Trade Act (FEFTA) is required before the company is established.

If prior notification is required, it must be submitted within six months prior to the date of the company registration, through the Bank of Japan, to the Minister of Finance and the competent minister overseeing the relevant industry. The investment will then be subject to a prescribed screening process.
The review period is 30 days in principle, although it may be shorter depending on the case. Company registration can only proceed after the screening is complete.

In addition to establishing a Kabushiki Kaisha (KK) or Godo Kaisha (GK), establishing a business office (Japanese branch) in Japan also requires prior notification if the business conducted at the branch involves designated industries.
However, if no physical office is established and only a Representative in Japan is registered, prior notification is not required.