MorgenSturn
Bringing Offshore Finance Opportunities to Japan
Japan: The Untapped Giant Awaits
Despite being one of the world’s largest economies, Japan remains relatively unfamiliar with the vast opportunities offshore finance can offer. While global markets have embraced offshore strategies to maximize wealth and investment potential, Japan's unique financial landscape has yet to fully tap into this resource. As global financial systems evolve, introducing offshore finance to Japan can open new doors for businesses and investors seeking diversification and enhanced growth opportunities.
Solutions
Our Three Tailored Offshore Finance Solutions
Trust
We offer trust schemes that take Japan's unique tax laws into account, ensuring that neither settlors nor trustees face increased tax burdens when transferring business or assets. Our offshore trust solutions provide Japanese business owners with the flexibility and efficiency they need for seamless succession planning.
Captive
It may seem surprising, but out of over 4,000 publicly listed companies in Japan, only around 200 are utilizing captive insurance. Moreover, less than 10% of companies are adequately covered for earthquake risks, despite Japan being highly earthquake-prone. By offering access to the global reinsurance market through captives, we aim to strengthen risk financing solutions and help companies better manage their risk exposure.
Fund
Under Japanese law, it can be difficult for global investors to confidently invest in Japan-based funds. By establishing funds in offshore jurisdictions like Guernsey, which follow global standards, we help create an environment where Japanese funds can attract more international investment. This approach opens the door to greater global capital flow and investor confidence.
Facts
Japan, with its unique culture, environment, and economy, stands apart from Western developed nations. However, the following four key facts demonstrate that offshore finance—commonly used in Europe and the U.S.—is just as essential for Japan. These factors highlight the need for Japanese businesses to leverage offshore financial tools to remain competitive and secure sustainable growth in an increasingly globalized market
01
Nation of Family Businesses
Family-owned businesses, also known as owner-operated or family-run companies, account for 52.9% of Japan’s publicly listed companies. When including privately held companies, this figure rises to over 90%, a rate significantly higher than in countries like the U.S., UK, and France. Despite this dominance, Japan lacks convenient succession planning tools like Discretionary Trusts, which could offer greater flexibility and efficiency in passing on family businesses.
03
Aiming to become Asset Management Powerhouse
In 2023, the Japanese government set a goal to transform Japan into a global leader in asset management. With over 1,100 trillion yen in household savings, representing more than half of total financial assets, the government seeks to shift these savings into investments to generate income from financial assets. To achieve this, attracting foreign investment has become increasingly essential, and creating a secure environment for global investors is a key priority
02
Earthquake-Prone Nation
The Japanese government publicly predicts a 70% chance of a major earthquake, such as the Nankai Trough, within the next 30 years. This earthquake could cause 96 times the damage of the Fukushima disaster, affecting major cities like Tokyo, Osaka, and Aichi. Despite this, fewer than 10% of companies have adequate earthquake insurance coverage. To address this risk, Japan must turn to the global reinsurance market, as domestic primary insurance lacks sufficient capacity.
04
World's 3rd Largest Economy
Japan ranks as the 3rd largest economy globally, following the U.S. and China. The Japan Exchange Group stands as the 5th largest stock exchange in the world, while the country ranks 11th in population. Despite global economic fluctuations, Japan has maintained a steady and resilient economy for decades. Its strong industrial base, advanced technology, and innovative business practices continue to make Japan a key player in global markets, offering a stable environment for investment and economic growth.
About Us
Founded in Los Angeles in 2002 as an accounting firm, we have expanded our operations in line with our evolving business domain. We later established offices in Tokyo, Chicago, and Guernsey. Today, we focus on offering offshore financial services to Japanese clients
Managing Director
Nobu Murata, CPA
History
2002-2010
Los Angeles
US Tax Services
In 2002, we began providing U.S. tax services in Los Angeles, focusing on Japanese companies and individuals. Our services included corporate, income, and sales tax filings for both federal and state governments. We also held regular seminars for the Japanese community, offering insights and guidance on U.S. tax matters to ensure clients stayed informed on the latest developments in American taxation.
2010-2016
Tokyo
Global Governance Services
We provide governance services to Japanese companies expanding into Europe and the U.S., supporting the optimization of accounting and management operations for local subsidiaries. By ensuring proper governance and monitoring, we help businesses achieve sustainable growth while maintaining compliance with local regulations. Our services focus on strengthening corporate governance to foster long-term success and adherence to international standards.
2016-2023
Chicago
Global Governance Services
M&A・PMI Services
After relocating to Chicago, we expanded our services to include M&A support in both the U.S. and Europe. We assist with mergers, acquisitions, and post-merger integration (PMI) in countries such as the U.S., Canada, Germany, the Netherlands, and the UK. Our expertise helps companies execute their international growth strategies, ensuring efficient integration processes and maximizing synergies for long-term success.
2023-Present
Guernsey
Global Governance Services
Offshore Finance Services
In 2018, we began offering offshore services in Guernsey, and in 2023, we expanded operations significantly. With our headquarters now in Guernsey, we are working closely with the Guernsey government to introduce offshore financial services to the Japanese market. Leveraging Guernsey's status as a premier offshore financial hub, we provide advanced financial services tailored to meet the needs of Japanese companies.
Contact Us
Our office is located within the Digital Greenhouse Guernsey, an innovation hub operated by the Guernsey government.
We are pleased to offer full support and consultations both in English & Japanese.
Office location
Digital Greenhouse, 2 Market St, St Peter Port
Guernsey GY1 1HB