Before a resident conducts an outward direct investment prescribed by Cabinet Order as being likely to cause one of the situations stated in the items of paragraph (4), the resident, pursuant to the provisions of Cabinet Order, must first file a notification of the substance of the outward direct investment, its timing, and other information that Cabinet Order prescribes with the Minister of Finance.
The term "outward direct investment" as used in this Article means a resident's acquisition of securities issued by a corporation that has been incorporated under foreign laws and regulations or lending of money to such a corporation that is prescribed by Cabinet Order as being done for the purpose of establishing a permanent economic relationship with the corporation, or a resident's payment of funds for the establishment or expansion of a branch office, factory, or other such place of business (hereinafter referred to as a "branch office or other such place of business") in a foreign country.
A resident that has filed a notification under paragraph (1) must not conduct the outward direct investment stated in the notification until the final day in the 20-day period that starts on the day that the Minister of Finance receives the notification; provided, however, that the Minister of Finance may shorten the 20-day period on finding there to be no special problems in light of the substance of the outward direct investment stated in the notification or any other circumstances.
If the outward direct investment under a notification referred to in the preceding paragraph were undertaken, the Minister of Finance, pursuant to Cabinet Order, may issue a recommendation to the person filing the notification of the outward direct investment to modify the substance of the investment or discontinue it, but only if the minister finds that the outward direct investment would cause one of the following situations and make it difficult to achieve the purpose of this Act or if a cabinet decision referred to in Article 10, paragraph (1) has been issued; provided, however, that the period during which the minister may issue a recommendation to modify or discontinue this is within 20 days from the day on which the minister receives the notification:
it would have a significant adverse effect on the smooth operation of the Japanese economy; or
我が国経済の円滑な運営に著しい悪影響を及ぼすことになること。
it would compromise international peace and security or interfere with the maintenance of public order.
国際的な平和及び安全を損ない、又は公の秩序の維持を妨げることになること。
Notwithstanding the provisions of paragraph (3), a person that is issued a recommendation under the preceding paragraph must not undertake the outward direct investment under the notification referred to in paragraph (3) until the final day in the 20-day period that starts on the date on which the person is issued that recommendation.
A person that is issued the recommendation under paragraph (4) must notify the Minister of Finance, within 10 days from the day on which the person is issued the recommendation, of whether or not the person will comply with the recommendation.
第四項の規定による勧告を受けた者は、当該勧告を受けた日から起算して十日以内に、財務大臣に対し、当該勧告を応諾するかしないかを通知しなければならない。
A person that has notified the Minister of Finance of compliance with the recommendation pursuant to the provisions of the preceding paragraph must conduct the outward direct investment that is subject to the recommendation in accordance with the recommendation.
Notwithstanding the provisions of paragraph (3) or (5), once a person notifies the Minister of Finance, pursuant to the provisions of paragraph (6), of compliance with a recommendation, the person may undertake the outward direct investment subject to the recommendation even if 20 days have not yet passed since the person was issued the recommendation.
If a person that has been issued a recommendation under paragraph (4) fails to notify the minister as under paragraph (6) or notifies the minister of non-compliance with the recommendation, the Minister of Finance may order the person issued the recommendation to modify the substance of the outward direct investment or discontinue it; provided, however, that the period during which the minister may issue an order to modify or discontinue this is within 20 days, starting from the day on which the minister issues the recommendation under paragraph (4).
Beyond as prescribed in each of the preceding paragraphs, Cabinet Order prescribes the procedures for recommending modifications to the substance of outward direct investment and for recommending the discontinuance of outward direct investment, and also provides for other necessary particulars of these recommendations.
If the obligation to obtain the permission of the Minister of Finance has been imposed pursuant to the provisions of Article 21, paragraph (1) or (2) with respect to outward direct investment that is required to be notified pursuant to the provisions of paragraph (1), the resident that makes that outward direct investment is not required to file the notification, notwithstanding the provisions of paragraph (1); in this case, if a notification under that paragraph has already been filed with respect to that outward direct investment, that notification (limited to a notification concerning outward direct investment that was not actually being made at the time the obligation to obtain permission was imposed pursuant to the provisions of Article 21, paragraph (1) or (2) (excluding outward direct investment for which notice of acceptance of a recommendation to discontinue has been given pursuant to the provisions of paragraph (6) and outward direct investment that has been ordered to be discontinued pursuant to the provisions of paragraph (9))) is deemed to be an application for the permission that it has been made obligatory to obtain pursuant to the provisions of Article 21, paragraph (1) or (2), filed on the date of that notification, and if a recommendation under the provisions of paragraph (4), a notice under the provisions of paragraph (6) (limited to one stating acceptance of a modification to the content), or an order under the provisions of paragraph (9) (limited to one concerning a modification to the content) has been made with respect to the outward direct investment covered by that notification, that recommendation, notice, or order is deemed not to have been made.
第一項の規定により届け出なければならないとされる対外直接投資について第二十一条第一項又は第二項の規定により財務大臣の許可を受ける義務が課された場合には、当該対外直接投資を行う居住者は、第一項の規定にかかわらず、その届出をすることを要しない。この場合において、当該対外直接投資について既に同項の規定による届出がされているときは、当該届出(同条第一項又は第二項の規定により許可を受ける義務が課された際現に行つていない対外直接投資(第六項の規定により中止の勧告を応諾する旨の通知がされたもの及び第九項の規定により中止を命ぜられたものを除く。)に係るものに限る。)については、これを当該届出のあつた日にされた同条第一項又は第二項の規定により受ける義務を課された許可に係る申請とみなし、当該届出に係る対外直接投資について第四項の規定による勧告、第六項の規定による通知(内容の変更を応諾する旨のものに限る。)又は第九項の規定による命令(内容の変更に係るものに限る。)があつたときは、当該勧告、通知又は命令については、これをなかつたものとみなす。
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foreign country
「外国」
Any area other than Japan (本邦).
Defined inArticle 6, paragraph (1), item (ii)
resident
「居住者」
A natural person with a domicile or residence in Japan, or a corporation with its principal office in Japan; a Japanese branch, sales office or other office of a non-resident is also treated as a resident, even if its principal office is in a foreign country and whether or not it has legal authority to act for it.
Defined inArticle 6, paragraph (1), item (v)
security
「証券」
Public bonds, corporate bonds, shares, equity interests, certificates giving rights to public bonds or shares, debentures, treasury securities, mortgage securities, profit certificates, coupons, dividend receipts, coupon exchange tickets and other similar securities or certificates a Cabinet Order (政令) specifies, whether or not a certificate has been issued.
Defined inArticle 6, paragraph (1), item (xi)
outward direct investment
「対外直接投資」
A resident's acquisition of securities issued by, or loan of money to, a corporation set up under foreign law that a Cabinet Order (政令) specifies as made to establish a lasting economic relationship with that corporation, or a resident's payment of funds to set up or expand a branch, factory or other place of business in a foreign country.
Defined inArticle 23, paragraph (2)· applies only in this article
branch office or other such place of business
「支店等」
A branch, factory or other place of business, as Article 23, paragraph (2) names them for those in a foreign country.
Short name set inArticle 23, paragraph (2)