Washington Law Review

Article Title

Joint Ventures in Japan


In most aspects of establishment and operation, joint venture corporations do not differ from any other corporate enterprise. A joint venture operating in a foreign country encounters daily problems of negotiable instruments law, property law and insurance law, to name but a few, in the same way that every corporation in that country does. Thus, it may seem presumptuous to write about joint ventures in a particular country unless one is willing and able to produce a comprehensive survey of that country's legal system. There are several areas of the foreign law, however, which are primary, in terms both of importance and of chronology, since the ground rules in these areas will govern the methods of establishment and operation and, indeed, are fundamental to the basic management decision of whether or not a joint venture operation would be practicable and profitable. Clearly, primary consideration must be given to matters of foreign exchange and foreign capital, company law, taxation, and in most cases matters of industrial property rights, as well as any special laws or aspects of laws relating to foreigners. The structuring of a joint company in the maze of interrelating rules in these legal areas might become quite a special problem. Not infrequently aspects of property law, anti-monopoly law and social and labor legislation also require special attention prior to establishment.

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