Cabinet Decisions on the “Cabinet Order for Developing Relevant Cabinet Orders Involving the Enforcement of the Act on Partially Amending the Act on Strengthening Industrial Competitiveness and Other Acts to Create New Business and Encourage Investment in Industries” and the “Cabinet Order for Stipulating the Enforcement Date of the Act on Partially Amending the Act on Strengthening Industrial Competitiveness and Other Acts to Create New Business and Encourage Investment in Industries”

1. Outline of the Revised Act

Aiming at the sustainable development of Japanese industries by helping businesses to appropriately deal with changes in the economic situation, including the growing intensification of international competitiveness for business locations, and by facilitating the creation of new businesses and investment in the industries, the Revised Act is to take measures toward improving support for Leading Medium Enterprises that undertake business reconstruction, reviewing the system for approving business adaptation plans, and extending the period for which the Japan Investment Corporation (JIC) will continue to operate.

2. Details of the Cabinet Orders

1. Cabinet Order for Developing Relevant Cabinet Orders Involving the Enforcement of the Act on Partially Amending the Act on Strengthening Industrial Competitiveness and Other Acts to Create New Business and Encourage Investment in Industries

The Cabinet Order is to mainly set forth the following provisions:

• Reviewing the business operations to facilitate business adaptation promotion provided by the Japan Finance Corporation;
• Stipulating the scope of entities of an investment limited partnership (LPS) that are not categorized as foreign corporations that whose value of existing investment should be limited to less than 50% of total investment value;
• Stipulating a notice of payment amount involving the transitional operations related to a loan guarantee issued by the Organization for Small and Medium Enterprises and Regional Innovation, JAPAN (SME Support, JAPAN); and
• Revising some provisions in line with the enforcement of the Revised Act, e.g., correction of misaligned article numbers.

2. Cabinet Order for Stipulating the Enforcement Date of the Act on Partially Amending the Act on Strengthening Industrial Competitiveness and Other Acts to Create New Business and Encourage Investment in Industries

• The Cabinet Order is to stipulate the enforcement date of the provisions set forth in the main clause of Article 1 of the Supplementary Provisions of the Revised Act (which come into effect as of the day specified by Cabinet Order within a period not exceeding three months from the date of promulgation) as September 2, 2024.

Note: The promulgation date of the Revised Act is June 7, 2024.

3. Future schedule

Promulgation:

Friday, August 30, 2024

Enforcement:

Monday, September 2, 2024

Related Materials (in Japanese)

• Summary of the Cabinet Order for Development(PDF:48KB)
• Cabinet Order for Development and the reason for the development(PDF:98KB)
• Comparison of the prior and revised provisions of the Cabinet Order for Development(PDF:198KB)
• Referential provisions of the Cabinet Order for Development(PDF:243KB)
• Summary of the Cabinet Order for Enforcement Date(PDF:23KB)
• Cabinet Order for Enforcement Date and the reason for the enforcement date(PDF:28KB)
• Referential provisions of the Cabinet Order for Enforcement Date(PDF:30KB)

Related Links

• Cabinet Decision on the Bill for Partially Amending the Act on Strengthening Industrial Competitiveness and Other Acts to Create New Business and Encourage Investment in Industries, (February 16, 2024)

Division in Charge

Industry Creation Policy Division, Economic and Industrial Policy Bureau