JAPAN: 2021 Updated List of Classifications of Listed Companies regarding the Prior-notification Requirements on Inward Direct Investment

Tuesday August 10 2021

The Japan Ministry of Finance has published an updated list of classifications of listed companies regarding prior notification requirements on inward direct investment.

The List of classifications of listed companies regarding the prior-notification requirements on inward direct investment under the Foreign Exchange and Foreign Trade Act (the “FEFTA”) is prepared by the Ministry of Finance for the benefit of foreign investors to make a decision on whether or not to submit a prior notification under the FEFTA when the investors make inward direct investments into the listed companies.

The list is prepared based on the surveys to listed companies, and information in their Articles of Associations and Annual Securities Reports and provides classifications of Japanese companies listed on the Japanese stock exchanges into the following categories regarding the prior-notification requirements on inward direct investment under the FEFTA:

• Companies conducting business activities only in non-designated business sectors (subject to post-investment report only)(①);
• Companies conducting business activities in designated business sectors other than core sectors(②); or
• Companies conducting business activities in core sectors(③)

The list was first published in May 2020, and was revised in June and July. The MoF have renewed the list as a 2021 annual update based on the results of surveys to all listed companies, as well as their articles of incorporation and securities reports.

Click here for the list.

Click on the link above for further information.