If your company want to expand business to Japan, you have various options to build up your business here. Your project might be located outside of Tokyo, like Okinawa or Niigata. But it’s quite hard to find international law firms outside of Tokyo so you might go to international law firms in Tokyo.
If your project size is huge, you can hire multi-national law firms which have their offices in Tokyo. There are several international law firms in Tokyo. However, not all of those cross-border project have over 100 million USD investment. How do you deal with mid-size or small size cross-border projects?
Even though the project is not huge, its complexity could be similar to the huge one. You have to deal with negotiation for business contract with Japanese people. You have to do legal due diligence, financial due diligence, and so forth. You need to explore government record in Japanese while it’s not easy to understand it.
In that case, you have two options to have external support. The first one is to hire foreign lawyers in Japan who can speak in English. In Japan, foreign lawyers are permitted to work in Japan only if they just advice foreign law matters basically. They are registered at Japanese Federation of Bar Association. Meantime, they are not admitted to practice Japanese law generally. Therefore, you will face difficulties in terms of your Japan business.
The second option is to hire a lawyer admitted in Japan who can speak in English. Meantime, quite few Japanese lawyers speak English actually. Some lawyers might use translator to deal with it, but it takes time. It’s quite difficult to translate legal jargons so this measure might not work for your business.
If you want to find Japanese lawyers who can speak in English, it’s good to go to big laws which have Japanese lawyers with New York bar qualifications. However, in case that your project size is small or mid-size, it will not economically reasonable.
In Japan, there are around forty thousand lawyers in Japan. There are four or five big laws. There are several midsize law firms. Almost 80% of law firms have one or two lawyers. Each of them has their expertise but it’s not easy to find out small or midsize law firms focusing on cross border transaction because the number of lawyers is much smaller than US.
Expanding a business to Japan and navigating cross-border projects can indeed present various challenges, especially when dealing with legal matters.
Some possible strategies to consider for mid-size or small cross-border projects:
On top of that, it’s rare to have business experience before becoming a lawyer since it takes so long time to become a lawyer. Some of Japanese lawyers might not be familiar with financial statement.
Hattori Law has a Japanese lawyer qualified in Japan and New York, USA. He worked for City Government of Yokohama, a law firm, and general contractor as an in-house counsel. He is familiar with cross-border cases. He also has deep insights on regulatory matters since he was in public sector previously.
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