What is a limited liability company

About company establishment

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 four types of companies: joint stock company, general partnership, limited partnership and limited liability company.
According to the Ministry of Justice's figures for the number of corporate incorporation registrations, there were 2014 in fiscal year 106,644. Of these, 86,639 were joint stock companies, accounting for 8% of the total. This was followed by limited liability companies (19,808), limited partnership companies (104), and general partnership companies (93).
Given this, it is fair to say that currently, the two most common ways of establishing a corporation are joint stock companies and limited liability companies.

Here, the newly established"Limited Liability Company"I would like to touch on the following:

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.

◆ Benefits

・The cost is less than that of establishing a joint-stock company (because the articles of incorporation do not need to be certified).
- Since there is no need to hold a general shareholders' meeting, decisions on management policies, etc. can be made quickly.
- There are no set terms for executive officers and representative partners, reducing the hassle of registering changes, etc.
There is no obligation to publish financial statements.

Disadvantages

- At present, it has an overwhelmingly lower name recognition than a joint-stock company, and is therefore not very trustworthy.

I hope that you have got the impression that there are many advantages and few disadvantages as described above.
However, the reality is that it is difficult for companies to trust a company they have never heard of before.
It's really hard for a company to gain credibility.

In reality, most LLCs in Japan are established by individuals who want to keep establishment and maintenance costs as low as possible, or as subsidiaries of larger corporations.

Documents necessary for registration application

・Application for registration of limited liability company
·articles of incorporation
・Decision on head office location and capital
・Letter of acceptance of appointment as business executive officer
・Document certifying that payment has been made
・Power of attorney (if applying on behalf of another person)

Flow until the establishment of a joint venture company

If you request our services, we will explain the process for establishing a LLC.

Step 1 Interview

We will ask you about your company's business objectives, capital, head office location, desired date of establishment, etc.
At that time, we will also provide you with a quotation that includes the company establishment costs and our fees.

After you have confirmed the estimate, we will give you an invoice. At that time, we will also prepare a seal.

Step 2 Preparation and confirmation of 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.

Step 3 Payment of investment

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

Please note that even if the deposit balance in your account is equal to the investment amount,"You have to pay it up."
Therefore, you will need to withdraw your investment and then deposit it again.

Step 4 Application for incorporation registration