In line with Prime Minister Abe’s effort to unleash the “third arrow” of Abenomics (the growth strategy through structural reform), Japan’s Ministry of Justice has recently abolished the resident director requirement. The abolishment will help to eliminate the barrier of entry for foreign companies, create a business friendly environment and increase foreign direct investment. From 16th March 2015 onwards, it is no longer compulsory for new or existing Japanese companies to have at least one Japanese resident as its director.