Recently we were requested to register the ownership transfer of a piece of property in Japan where the seller was a Japan resident Japanese individual and the buyer was a Hong Kong entity. Real estate registrations that involve a foreign entity require some specific documents and procedures as follows.
Hong Kong Entity Certificate
When the buyer is a Japanese entity, a copy of that entity’s corporate registration certificate is attached to certify its address and legal representative. In the case of foreign entity, it is necessary to attach either (1) a certificate issued by a government body in the country where the company was incorporated certifying the above, or (2) if no such certificate is issued, prepare and have an Affidavit notarized that certifies the foreign corporation’s name, address and legal representative.
In Hong Kong, the Annual Return issued by the Companies Registry (a government body) states the entity’s name, address and legal representative, and as such we obtained this document for purposes of this registration.
Notice to Bank of Japan Pursuant to Foreign Exchange and Foreign Trade Act (FEFTA)
When a non-resident buyer acquires domestic real estate, in principle, a notice must be submitted to the Bank of Japan under the FEFTA. In this case since the buyer was a non-resident Hong Kong entity and no special exceptions were applicable and accordingly the relevant notice was filed to the Bank of Japan.
For more information, please inquire at https://shimax-legal.com/english/contact/