Tokyo is reclaiming its place among the world’s leading financial capitals. Tax reforms, simplified market entry, and relaxed residency rules have put the city on the radar of foreign investors and asset management firms looking to tap into Japan’s green finance momentum and the opportunities offered by 2,000 trillion yen in personal financial assets waiting to be invested for higher returns. For businesses looking to expand in Tokyo’s growing financial ecosystem, there is a wealth of support available to make their journey smooth and efficient.
“Getting the license from the FSA was incredibly efficient. We went from first application to being granted the license in less than three months,” says Stephen Fitzgerald, Managing Partner of Affirmative Investment Management. The firm expanded its Tokyo presence in 2020 in response to Japanese investors’ growing interest in ESG investment, having been approached by Sumitomo Mitsui Banking Corporation about a partnership. “We were the first foreign asset management company to apply for a license through their new international desk, and everything was conducted in English.”
The company’s experience demonstrates the efficiency of the support available to foreign businesses in Tokyo. What once involved visits to at least seven different government offices in different parts of the city was significantly streamlined in April 2015 with the launch of the Tokyo One-Stop Business Establishment Center (TOSBEC), a joint initiative by the Japanese Government and the Tokyo Metropolitan Government (TMG). Operating under the National Strategic Special Zones program, TOSBEC offers free expert consultations on business opening matters in multiple languages from its main office in Akasaka as well as satellite branches in Shibuya and Marunouchi.
But it doesn’t stop there. When Governor Koike Yuriko launched her flagship Global Financial City: Tokyo Vision in 2017, the TMG moved decisively to tackle the issues foreign financial firms faced when entering Japan. The upgraded Global Financial City: Tokyo Vision 2.0 launched in 2021 further expanded the generous support for financial companies. Business Development Center TOKYO, the TMG’s main contact point, now offers total support from business to lifestyle for foreign companies considering expansion in Tokyo, including a dedicated Financial One-Stop Support Service.
Using this service, foreign asset management or fintech businesses considering Tokyo can receive comprehensive advice covering administrative procedures such as company registration and financial licenses, referrals to specialist competence such as lawyers and accountants, as well as information regarding the living environment, including how to access hospitals and international schools. To help companies establish a foothold in Japan, a business matching service is also available.
“Our support network can connect companies with a range of experts, such as experienced law firms, as well as organizations that hold various networking events for financial institutions, like FinCity.Tokyo. Based on consultation meetings with each company, we are ready to provide the necessary information depending on the stage of their establishment,” says Tsuruyama Teizo, Financial Desk Consultant, Business Development Center TOKYO. “Our services are not only free of charge, but can be used as much as necessary.”
Hands-on guidance is also available from the Financial Services Agency (FSA), which operates a Financial Market Entry Office offering English-language support for asset management firms and other financial companies entering the Japanese market. The support covers preliminary consultations regarding business license registration, registration procedures and post-registration supervision. As the Financial Market Entry Office cooperates closely with the Financial One-Stop Support Service, businesses considering Tokyo can receive advice from either of the two.
When the leading markets’ infrastructure and technology platform Symphony launched its Tokyo office in 2017 after being selected to receive support through one of the TMG’s business attraction programs, business matching assistance enabled it to gain a solid foothold in Japan.
“We always knew Tokyo was part of our journey. After New York and London, it was an obvious location because of all the major financial players that are there,” says Marie Patton, Managing Director, APAC. “But part of being a newbie in a city is knowing where to go and who to speak to. Collaboration with the right partners is what is going to drive success if you are an international entity in Japan. Under the guidance of the Tokyo Metropolitan Government, we were put in touch with all the people that we needed to talk to and could get the answers that were essential to us.”
Higuchi Takayuki, Senior Director, Strategic Projects Division, Office of the Governor for Policy Planning, Tokyo Metropolitan Government, emphasizes the focus on seamless support. “We provide support from the initial stage where foreign financial companies first express an interest in Tokyo through to the stage where they establish an office here and move on to develop their business. For example, for companies active in green finance, we are enhancing financial assistance, including for personnel expenses. This includes subsidizing up to fifty million yen in operational costs for the first year of expansion.”
For foreign businesses settling in Tokyo, this broad, continuous support is much appreciated.
“I have found dealing with regulators in Japan to be much more efficient than elsewhere in the world,” says Fitzgerald. “But building a business takes more than a license—it takes patience, the right people, and understanding local needs. It is all about relationships, with regulators, stakeholders and customers.”
This is where he feels Japan really shines. “If you invest in a relationship here, and don’t do anything that would breach trust, then that relationship will last forever.”
“Tokyo,” he concludes, “has become a very important place for us to be.”
