5.Financing

|Q4 (Procedure for Foreign Investors - Company)

What kind of special procedures are necessary by the company in the issuance of new shares if a foreigner invests in our company?

If the foreign investor is not resident in Japan, under the Foreign Exchange Law (“FEL”), the company must submit a post-transaction report to the Bank of Japan for the “receipt of payment from a non-resident to Japan” (FEL, Article 55). However, if the amount received is not more than 30,000,000 Japanese yen, no report is required (unless the payment is from certain specified countries). Also, for a discussion of the regulations on the investor in a foreign direct investment into Japan, please see Question 00163.

(Posted: January 27, 2012)