Are you establishing a corporation or a personal business?
The chart below lists the differences you'll encounter when making this choice.
| Corporation(Company) | Personal Business | |
|---|---|---|
| Responsibility | Limited liability Your corporation assumes responsibility For the entirety of the investment. |
Unrestricted responsibility All debts are guaranteed |
| Funding | Comparatively easy When financing is received from a financial institution etc, the president himself should act as the guarantor. |
Comparatively difficult When financing is received from a Financial institution etc, it is necessary to prepare the mortgage by the amount borrowed using a third party guarantor. |
| Carry-over of deficit | The carry-over period is 9years *A blue-form return is required. |
The carry-over period is 3years *A blue-form return is required. |
| Ease of establishment | Cost to establish Litigation of approx 250,000 yen is necessary in the establishment of a corporation. *A grant application is necessary according to the type of business. |
Can be established with only a written report The required tax documentation is all that is necessary to establish this type of business. *A grant application is necessary according to the type of business. |
Why is a grant necessary for a business?
According to the type of activities conducted by your business, regardless of the corporate structure as either a corporation or personal business, a grant may be needed.
Please consult with us as to whether a grant will be necessary for your business beforehand.
| Type of business | Grant division | Submitting place |
|---|---|---|
| Restaurant industry | Restaurant permission | Public health center |
| Cake manufacturing sales industry | Cake manufacturing license | Public health center |
| Laundry and dry cleaning business | Submitting of establishment confirmation | Public health center |
| Hotel business | Hotel business permission | Public health center |
| Pet shop industry | Registration | Public health center |
| Labor dispatch service | Permission or application | Bureau of Labor |
| Liquors sales industry | Off-license | Tax office |
| Thrift shop/Second-hand bookshop/Old clothes shop/Used car sales industry | Antique commerce permission | Police station |
| Guard industry | Authorization | Police station |
| Housing lot building dealings industry | License | Prefectural office |
| Construction industry | Construction industry permission | Prefectural office |
| Money lender | Registration | Prefectural office |
| Transport industry | Transportation business permission | District transport bureau |
*The above-mentioned type of business is only typical. There is the necessary one of the grant besides the above-mentioned. Moreover, there is a type of business for which the qualification is privately necessary before the grant is done, too.
For instance, the business can be done by registering the licensed tax accountant to Certified Tax Accountants' Association for the licensed tax accountant after the qualification is acquired, and belonging to the branch of each Certified Tax Accountants' Association.
When no permission and business by the without notice come to light, it is punished to the penal servitude or the penalty and suspension of business.
When you go into a personal business
When the personal business is begun, the following written report is generally needed.
When you go into a general incorporation of enterprise
A typical corporate establishment schedule is as following.
*Necessary applications of permissions may vary according to the type of business.
Moreover,when a medical corporation is established,it is necessary to fill human requirements,property requirements and other requirements.
A hospital or clinic where doctors or dentists work,and corporations or foundations that establish geriatric health service facilities must obtain the governor's authorization.
Please contact us about the establishment of a medical corporation.
Leave it to Armeria Tax Company!
We offer general support to set up a company!
We offer everything from consultations of establishment to business bookkeeping, company establishment, and tax consultation for these thinking about corporation of enterprise or sole proprietor.
We offer collective representation for taxation business!
We offer company establishment recording,various grant applications,written report to tax office after establishment procedures for social insurance registration guidance,closing of accounts,tax declaration,guidance for raising funds,etc.
We offer general support for management!
We will strongly support healthy growth of the company by detailing the company's circumstances after establishment and offering the best advice.
