Set Up a Financial Company in Japan

Updated on Friday 15th September 2017

Rate this article

5 5 1
based on 2 reviews

The Japanese financial system is characterized by aspects which are similar to those of the major developed states. These aspects include a commercial banking system, specialized-government-owned financial institutions, securities companies, capital markets and money markets. Our company formation consultants in Japan can offer assistance related to setting up a Japanese financial company.

The regulator of the financial markets in Japan

The regulating authority for financial institutions in Japan is the Financial Services Agency of Japan (FSA) which belongs to the Cabinet Office.

The FSA in Japan maintains the stability of the financial systems in the country and protects the interests of the deposit holders, security investors and insurance policy holders.

It also makes sure that the financial systems in Japan operate smoothly by issuing the appropriate policies and supervising the private financial institutions. Our Japan company formation advisors can offer more details on this matter.

Moreover, the Securities and Exchange Commission, a branch of the FSA, was created to confer “fair, equitable, transparent and sound markets in both securities and financial futures”.

Even though it is not a regulatory authority, the Bank of Japan also possesses some powers to effectuate on-site examinations of the banks which have been opened into bilateral agreements and present current accounts with the Bank of Japan.

Licenses for investment banks in Japan

Investment banks which undertake the following activities must obtain a license or have to register with the Prime Minister in Japan:

• The sale and purchase of securities;

• Brokerage, intermediary or agency of the sale and purchase of securities;

• Underwriting and offering securities;

• Advisory services which are non-discretionary;

• Management services which are discretionary.

The Japan Banking Act

The Japan legislation stipulates that the commercial and investment banking are separated.

The main law which regulates the commercial banking activities in Japan is the Banking Act.

The registration and operation of securities and derivative-related business activities are regulated by the Financial Instruments and Exchange Act of Japan (FIEA). Our company registration representatives in Japan can provide further details on this subject.

Banks in Japan are usually restricted from engaging in securities and derivatives-related activities. In case a bank wants to do such transactions, it has to establish and register a separate entity.

In case you would like to know more about the Japanese financial institutions, or if you need assistance in starting a company in Japan, please contact our Japan company formation advisors.

Comments

There are no comments

Comments & Requests

Meet us in Tokyo

Call us now at (+81) 3-4580-1516 to set up an appointment with our company formation agents in Tokyo, Japan. Alternatively you can incorporate your company without traveling to Japan.

As a BridgeWest client, you will benefit from the joint expertize of local and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Japan.

Company Formation Japan

Set Up a Financial Company in Japan

The regulator of the financial markets in Japan

Licenses for investment banks in Japan

The Japan Banking Act

Comments

Comments & Requests

Meet us in Tokyo

Online Incorporation

Tax Calculator

Latest Blog Posts

We recommend ClientPedia