November 2, 2021
Ministry of Finance
Update of the List of Classifications of Listed Companies regarding the Prior-notification Requirements on Inward Direct Investment
The “List of classifications of listed companies regarding the prior-notification requirements on inward direct investment under the Foreign Exchange and Foreign Trade Act (the “FEFTA”)” is prepared by the Ministry of Finance for the benefit of foreign investors to make a decision on whether or not to submit a prior notification under the FEFTA when the investors make inward direct investments into the listed companies.
The list is prepared based on the surveys to all listed companies, and information in their Articles of Associations and Annual Securities Reports and provides classifications of Japanese companies listed on the Japanese stock exchanges into the following categories regarding the prior-notification requirements on inward direct investment under the FEFTA. This list was first published in May 2020, and was revised in June and July 2020, and July 2021.
- Companies conducting business activities only in non-designated business sectors (subject to post-investment report only)(①);
- Companies conducting business activities in designated business sectors other than core sectors(②); or
- Companies conducting business activities in core business sectors(③)
This time the Amendments to the Regulatory Notices adding the Core Business Sectors of the FEFTA to Secure the Stable Supply of Critical Minerals was promulgated on October 5, and the provisions of the revised FEFTA Regulatory Notices shall apply to inward direct investment and equivalent actions to be made on or after November 4.
As for the list, we renewed the list so that the list reflects the Amendments to the Regulatory Notices, newly listed and delisted companies, and the latest company’s business activities. For this renewal, we conducted surveys again to all listed companies and asked for cooperation to answer the surveys. Based on the results of these surveys as well as their Articles of Associations and Annual Securities Reports, there are companies whose classifications have changed.
(Note 1) Under the FEFTA, in principle, investors are required to determine whether they need to submit prior-notification or not. This list is prepared for the benefit of investors in making such decision. This list is based on the surveys to listed companies, and information in their Articles of Associations and Annual Securities Reports. The classification in this list and the actual classification at the time of investment may differ in cases including where there are changes in the company’s business activities.
(Note 2) Designated Business Sectors
Designated Business Sectors means the following industries designated in the public notice (Public Notice Specifying Business Sectors to Be Specified by the Minister of Finance and the Competent Minister for the Business Pursuant to the Provisions of Article 3, Paragraph (3) of the Order on Inward Direct Investment).
- Business sectors related to inward direct investment, etc. that are likely to undermine national security, disturb the maintenance of public order or interfere with the protection of public safety.
- Business sectors related to inward direct investment, etc. that Japan has withheld pursuant to the provision of Article 2b of the OECD Codes of Liberalisation of Capital Movement
(Note 3) Core Business Sectors
Core Business Sectors means a certain type of business sectors designated from the viewpoint of national security, etc. in the public notice (Public Notice Specifying Business Sectors to Be Specified by the Minister of Finance and the Competent Minister for the Business Pursuant to the Provisions of Article 3-2, Paragraph (3) of the Order on Inward Direct Investment).
Link to the List(Excel:242KB)