What is a limited liability company

With the amendment of the Company Law of 2006 year, the hurdle of establishing a company has fallen, and more people are able to establish a company. And a new company, a joint venture company, was founded.

There are 4 types of companies, such as corporations, limited partnerships, limited partnerships and limited partnerships. Looking at the number of registered corporations announced by the Ministry of Justice, the number of registered corporations in 2014 was 106,644. Of these, the number of registered corporations accounted for 86,639, accounting for 8 percent of the total. This is followed by limited partnerships (19,808), limited partnerships (104), and partnerships (93). From this point of view, I think that 2, a joint-stock company and a limited liability company, is the mainstream for the current establishment of corporations. Here, I would like to touch on the newly established “GK”.

Advantages and disadvantages of joint venture companies

First of all, what kind of thing is merit and disadvantage of establishing a newly formed joint venture company? Compared with the establishment of a corporation.

Merit: The burden is less than the cost when founded. (Because it is not necessary to certify the articles of incorporation)
Since there is no need to open a general shareholders meeting, the speed of decisions such as management policy is quick.
Because the term of office of executive officers and representative staff is not stipulated, time and labor for change registration etc. is reduced.
There is no obligation of announcement of settlement of accounts.

Demerit: At present, it is overwhelmingly low in recognition as compared with a corporation, so its creditworthiness is not so much.

I think that you could have the image that there are many advantages and few disadvantages as described above. However, at present, it is difficult to hear from companies I have not heard of and trust them. It is really hard for a company to gain trust. In fact, the majority of GKs in Japan are founded by individuals who want to minimize the cost of establishment and maintenance, and those that are established as subsidiaries of large-scale companies.

Documents necessary for registration application

・ Application for registration of establishment of a limited liability company ・ Incorporation ・ Information on the location of the head office and capital ・ Consent for the appointment of the executive officer ・ A document certifying that the payment has been made ・ A power of attorney (when applying on behalf of a proxy)

Flow until the establishment of a joint venture company

I will explain the flow up to the establishment of a joint venture company.

step1: interview

We will ask the company's business purpose and capital, head office location, hope of the establishment date, etc. At that time, we also have an estimate that combines the company establishment fee and our remuneration amount. We will hand you the invoice after confirming your quotation.

In that case, I am also making a seal.

step2: Preparation and confirmation of the articles of incorporation

Preparation and confirmation of the articles of incorporation

Upon confirming the payment of the invoiced amount, we will prepare the company's articles of incorporation and confirm the contents of the articles of incorporation.

step3: Payment of investment

We will pay the investment stipulated in the articles of incorporation to the bank account in the name of the principal.

The thing that I want to be aware of is that even if the balance of the deposit in the account is equal to the amount of funds to be funded, it must be paid out. So it is necessary to withdraw cash out once and deposit again.

step4: Application for establishment registration of corporation

Application for establishment registration of corporation

We will apply for legal entity registration registration to the Legal Affairs Bureau which jurisd the head office location.

This application date is the company establishment date. Registration will be completed in about 1 weeks.

step5: Notification after company establishment

Notification after company establishment

There are various things you still have to do after company establishment. It is necessary to report to tax office and city office · tax office.

Advantages and disadvantages of joint venture companies

Documents necessary for registration application

Flow until the establishment of a joint venture company