P5 News
Shonan Tax Office No. 164
May 2003

Company’s Capital 1 Yen

    After a person quit a company, if a person wanted to establish an own company, a company can be a limited partnership. However, people usually establish a limited liability company. A minimum capital of a limited liability company has to be 100,000,00 yen under the commercial law. The method of establishing a company is first of all to arrange with a bank and to obtain a statement of safekeeping from a bank. Second, bring attached documents to a local registration office of The Ministry of Justice in order to be registered. That day would be an establishment day for the company. Next, law officers check documents, and if everything is going ok, a registration of a company is done. While registration is been processing, capital is not able to use. People hesitate to establish a company because it is not easy to preparation 10,000,000 yen, and the capital cannot be used in the process of a registration. 
    The purpose of a minimum capital is to reduce risks for correspondents by possessing a large amount of money. Recently, big companies have gone bankrupt, in despite of possessing a large amount of money. Because a company possesses a large amount of capital, it does not mean a company does not go out of business in fact medium and small companies have correspondents that a value of capital is low or high. Therefore, it does not matter with companies whether correspondents have low value of capital. Unfortunately, it is difficult to establish a company for students and salaried worker who do not have enough resources because of the minimum capital system. Consequently, "Medium and Small Companies Challenge Support Law" has been formed in 2002 in order to foster and develop medium and small companies. Moreover, economy would refresh, and many people would be employed in our country. Because of this law, people are able to establish a company with capital 1 yen.

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