Kanagawa's business environment attracts foreign direct investment by hundreds of companies

Kanagawa Prefecture, located adjacent to Japan’s capital Tokyo, is a place where world-renowned global companies as well as many small-and medium-sized enterprises with excellent technologies are concentrated.

Kanagawa’s population of approximately 9.2 million, which is forming a mega-market connected to Tokyo, and abundant and diverse human resources are just a part of its strengths attracting these companies. In addition to the well-developed traffic network of roads and railways that covers a wide area, it has international trade ports, including the ports of Yokohama, Kawasaki and Yokosuka. Tokyo International Airport (Haneda Airport) is located in proximity, too.

Blessed with a rich natural environment of lush green mountains and picturesque coastlines, Kanagawa boasts sightseeing spots that represent all of Japan’s charms. The international port city of Yokohama, the ancient samurai capital of Kamakura with a history and rich culture, and the international tourist resort of Hakone, which is known for its hot springs and scenic beauty, are some of the numerous destinations.

These facts show that Kanagawa is a very convenient and attractive area not only for business, but for daily life as well, providing an ideal location for multinational companies.

The Kanagawa Prefectural Government, with an aim to further develop the industrial base open to the world, wishes to attract even more foreign companies and create innovations through collaboration with the existing companies. And to make Kanagawa a business destination to be “selected” by overseas companies, it is launching an investment incentive package “Select Kanagawa NEXT” in November.

Select Kanagawa NEXT offers consultations for foreign companies on doing business and setting up a base of operation in Kanagawa, in collaboration with Japan External Trade Organization (JETRO), the municipalities in the prefecture and relevant agencies. Assistance is also provided for procedures necessary for establishing a company, such as corporate registration, visa application, and choosing an office. Let’s take a brief look at the specific programs.

When overseas companies start business activities in Japan, procedures like foreign residents’ registration, corporate/branch registration, location hunting, and personnel recruitment will be needed. In order to support this initial phase, the Kanagawa Prefectural Government and JETRO Yokohama jointly operate “IBSC Kanagawa”, office spaces for foreign start-ups that are rented free of charge for 50 business days.

In setting up a base in Japan, various expenses will be incurred, including costs of consultations with administrative scriveners/tax accountants and recruitment of staff. The Kanagawa Prefectural Government provides subsidy to foreign businesses to cover half of these costs, up to two million yen.

Furthermore, in order to support business operations, the prefectural government rents out competitively-priced offices. To those renting an office by themselves, it provides subsidy to cover one-third of the monthly rent for the first six months. The amount can be up to six million yen, if the applicant meets requirements, such as hiring at least five full-time employees.

This rent subsidy is not only for foreign businesses new to Kanagawa but also for those already in the prefecture and plan to expand their business there. If you have a business development plan, why don’t you contact the Kanagawa Prefectural Government? Kanagawa also issues press releases about companies’ incorporation or business opening, which will be sure to help increase their name recognition.

The number of foreign firms with their headquarters in Kanagawa reached 302 in 2019, according to a survey by Toyo Keizai Inc. It is the second largest after Tokyo.

To assist these foreign companies, the Kanagawa Prefectural Government offers networking events and seminars on the necessary steps following the opening, such as labor and tax management.

If you want a good business environment, Kanagawa is a place to choose. Select Kanagawa NEXT is worth a try.

For more information, please click here.

© Japan Today