The following Construction practice note provides comprehensive and up to date legal information covering:
This Practice Note contains a jurisdiction-specific Q&A guide to construction rights in Japan published as part of the Lexology Getting the Deal Through series by Law Business Research (published: August 2020).
Authors: Anderson Mori & Tomotsune—Makoto Terazaki; Masahiro Yano; Hiroaki Nakano
A foreign designer or contractor can set up a subsidiary or branch for its continuous business pursuant to the Companies Act (86/2005).
The subsidiary of a foreign contractor or a foreign contractor itself (with a branch) must obtain a licence to operate a construction business. Licence requirements include the placement of a full-time manager and an engineer with practical experience and the appropriate qualification in Japan. The experience and the qualification in a foreign country can fulfil such requirements, provided that those are certified as equivalent by the Minister of Land, Infrastructure, Transport and Tourism. However, such certification is rarely used. Therefore, practically speaking, it is more or less a requirement to employ a Japanese individual for such purposes.
In addition, the language barrier should be considered, as almost all relevant documents (eg, contracts, specifications and drawings) are written in Japanese.
Licensing issues can become a key concern for a foreign designer. In practice, there may be a
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