Japan is a country with one of the most developed economies in the world, one of the largest global investors, but, despite this, it attracts quite a bit of foreign investment. The reasons for this are high barriers to entry, cultural differences and the complexity of intercultural communication.
However, equity investment in Japan, including through direct investment funds, is becoming increasingly important for industry restructuring. Not only institutional but also retail investors prefer to invest in various funds.
If you are interested in obtaining an investment fund manager's license in Japan, read this material carefully.
A number of different types of financial institutions fall within the scope of the description collective investment institution. Included are:
- Investment funds.
- Mutual funds.
- Private equity funds.
- Variable capital companies.
- Investment limited partnerships.
- Hedge funds.
- Professional investor funds.
- Property and real estate funds etc.
Japanese direct investment fund
This type of funds must have a registered office in Japan. The general partner must prepare financial statements, require the certified auditor to conduct an audit within three months after the end of the financial year. There are no requirements for a corporate secretary.
If you intend to register a partner-type fund in Japan, is not mandatory to get authorized. Also, the general partner must apply for registration of securities, prepare and pass the prospectus to investors and disclose information.
There are several legal forms that are used to establish a direct investment fund in Japan.
- Start a partnership in Japan
Partnership is a mechanism where all partners share the profits and risks (losses) of the partnership, have unlimited liability to third parties. A third party who enters into a partnership transaction may sue the investors for damages.
- Register limited liability investment companу in Japan
These are partnerships where investors have limited liability. It is important to note that in Japan, such partnerships are prohibited from investing 50% or more of their assets in foreign corporations.
If you are interested in obtaining an ILP manager's license in Japan, such a person will be a general partner and have unlimited liability to third parties for the organization's obligations.
- Establish an LLC in Japan
The Japanese Limited Liability Company is the most typical mechanism for establishing Japanese private equity funds. This form implies that the partners directly own the assets and liabilities of the partnership. The investor's liability is limited to the amount of his capital contribution.
Portfolio equity investments include net inflows from equity securities other than those recorded as direct investments, including stocks, bonds, depositary receipts and direct purchases of shares on local stock markets by foreign investors.
Final word
Our specialists are aware of all the current updates in regulatory policies, structures and mechanisms that are used when establishing a Japanese direct investment fund.
We advise on the formation and operation of funds in Japan, and provide advice on investment activities in Japan in general.
