Japanese Prime Minister Fumio Kishida in the Prime Minister’s Office on Tuesday
15:10 JST, June 5, 2024
TOKYO (Jiji Press) – The government on Tuesday designated four areas as special zones to promote new entry and expansion of domestic and foreign financial and asset management companies and attract foreign investment inflows into the country.
The government aims to develop the special zones for asset management companies as financial centers with deregulatory measures, such as allowing companies to complete administrative procedures exclusively in English and introducing tax breaks, as part of an effort to stimulate the growth of local stimulate industries and startups.
The four areas are Hokkaido and the capital Sapporo; Tokyo; the prefecture and city of Osaka; and Fukuoka Prefecture and City.
“I hope that all designated areas will use their characteristics and strengths to continuously propose regulatory reforms and take advantage of the system,” Prime Minister Fumio Kishida said at a government meeting ahead of the designation.
The establishment of special zones for financial and asset management companies is part of the government’s efforts to promote the country as a leading wealth management center. The four areas submitted bids for such zones after the government started looking for hosts in January.
A support office will be set up in each area to help accept registration applications and consultations from foreign asset managers in English, thus reducing language barriers. The office will also support companies in translating commercial registrations and health insurance procedures into English and assist foreigners in opening bank accounts.
In the special zones, regulations on investments by banks in projects related to green transformation will be relaxed to support the growth of emerging regional industries.
The four areas will take unique measures. The Hokkaido and Sapporo region, which aims to attract green, transformation-related industries, is considering tax relief for participating companies. Tokyo will offer subsidies to companies in the field of asset management, because it wants to achieve a sustainable society through financing.
Osaka plans to use the 2025 World Expo, which will be held in the city, as an opportunity to attract startups. Fukuoka plans to focus on encouraging startups as a gateway to Asia.
