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I'm curious why it costs so much to handle the paperwork/filings for a company that sounds like it's essentially dormant. Is that just normal in Japan? Also is

I'm curious why it costs so much to handle the paperwork/filings for a company that sounds like it's essentially dormant. Is that just normal in Japan? Also is 50k the cost of incorporation or the capital required to incorporate in Japan? If so, if he/she dissolves the company can she get some of that back? To the original poster, I wish you all the best, sincerely, you can get through this, and like others have said you can make back the 50k, try not to worry about that, that only pays for a couple of years of private school for a little kid where I live.

patio11 8y ago
To your first question: this is simply the cost-of-doing-business here, driven (largely) by Japan's expectation that the company is the primary interface between a citizen and the government, and therefore the company bears responsibility for sending a licensed professional to the relevant offices approximately monthly bearing filings relevant to their employees, and this licensed professional has the opposite of economies of scale if they're taking in filings for 1 employee. (There's also a premium built into that price for service in English, which is something most accountancies in Japan can't offer in-house.) It is not particularly expensive to incorporate a company in Japan and, while capital requirements were once in the $30k range, they're functionally $0 now. I will not speculate as to the original poster's financial circumstances.
nihonde 8y ago
As a point of contrast, my family’s 株式会社 spends about US$2,000 or less annually. This is without English support, though.
- Alterlife 8y ago
  > 株式会社 To save other folks the trouble, Google Translate says this translates to: "Ltd.".
  - teraflop 8y ago
    Google Translate is essentially correct, but Wikipedia has more details: https://en.wikipedia.org/wiki/Kabushiki_gaisha https://en.wikipedia.org/wiki/Kabushiki_gaisha
  - microcolonel 8y ago
    It's more like a corporation, specifically one which issues shares. Added: There is a separate classification which is virtually identical to U.S. LLCs (because it was modeled after them), called 合同会社.
    - wiqo0s 8y ago
      It appears he formed a Co., Ltd. (Company Limited) which is a private/unlisted stock corporation.
  - nihonde 8y ago
    A Kabushikigaisha is roughly equivalent to a C Corp in the US. You’ve probably seen the abbreviation K.K. after Japanese company names before.
ownerthrowaway 8y ago
I put in 50k because that is what is needed to get a business manager visa. Right now it is sitting in the company account. I'm sure I could get some of it back if I closed the company.
- wiqo0s 8y ago
  If the $50k is your paid up registered capital, you can loan out the money back to yourself as a loan to director or even another legal entity (such as a US or foreign corporation, LLC, LP, etc.). The $50k of registered capital (the investment to secure the visa) would remain on the balance sheet. Perhaps you could remain in business and assist foreigners with setting up Japanese companies.
  - titanix2 8y ago
    > Perhaps you could remain in business and assist foreigners with setting up Japanese companies. Someone with an empty shell business, limited or no Japanese skill and no Japanese cofounder is precisely the last person I would ask advice to set up my company there.
- RobertRoberts 8y ago
  I wrote a comment further down, but I wanted to say that I've gotten a lot of advice from business owners over the years. I have many family members, and my own great grandparents all the way down my generation were all business owners, including many, many relatives. I've had multiple business coaches and personal advisors as well, and across the board, all of them would tell me that you need to have a full and complete plan before even starting out creating a business. I did it by the seat of my pants and paid dearly through some near disasters. But I never had 50k invested up front. If you had a viable plan to make this work, you just need to work your plan. If you don't, you should seriously consider pulling out as much money as you can and take this experience as a solid life lesson. Those that won't quit don't really talk like you are right now in your original posting. My sense is that you have skills, talent in other areas and were trying to get happiness through an area of life you don't excel at. I hope you figure this all out, all the best to you.

patio11 8y ago

To your first question: this is simply the cost-of-doing-business here, driven (largely) by Japan's expectation that the company is the primary interface between a citizen and the government, and therefore the company bears responsibility for sending a licensed professional to the relevant offices approximately monthly bearing filings relevant to their employees, and this licensed professional has the opposite of economies of scale if they're taking in filings for 1 employee. (There's also a premium built into that price for service in English, which is something most accountancies in Japan can't offer in-house.) It is not particularly expensive to incorporate a company in Japan and, while capital requirements were once in the $30k range, they're functionally $0 now. I will not speculate as to the original poster's financial circumstances.

nihonde 8y ago

As a point of contrast, my family’s 株式会社 spends about US$2,000 or less annually. This is without English support, though.

Alterlife 8y ago
> 株式会社 To save other folks the trouble, Google Translate says this translates to: "Ltd.".
- teraflop 8y ago
  Google Translate is essentially correct, but Wikipedia has more details: https://en.wikipedia.org/wiki/Kabushiki_gaisha https://en.wikipedia.org/wiki/Kabushiki_gaisha
- microcolonel 8y ago
  It's more like a corporation, specifically one which issues shares. Added: There is a separate classification which is virtually identical to U.S. LLCs (because it was modeled after them), called 合同会社.
  - wiqo0s 8y ago
    It appears he formed a Co., Ltd. (Company Limited) which is a private/unlisted stock corporation.
- nihonde 8y ago
  A Kabushikigaisha is roughly equivalent to a C Corp in the US. You’ve probably seen the abbreviation K.K. after Japanese company names before.

ownerthrowaway 8y ago

I put in 50k because that is what is needed to get a business manager visa. Right now it is sitting in the company account. I'm sure I could get some of it back if I closed the company.

wiqo0s 8y ago
If the $50k is your paid up registered capital, you can loan out the money back to yourself as a loan to director or even another legal entity (such as a US or foreign corporation, LLC, LP, etc.). The $50k of registered capital (the investment to secure the visa) would remain on the balance sheet. Perhaps you could remain in business and assist foreigners with setting up Japanese companies.
- titanix2 8y ago
  > Perhaps you could remain in business and assist foreigners with setting up Japanese companies. Someone with an empty shell business, limited or no Japanese skill and no Japanese cofounder is precisely the last person I would ask advice to set up my company there.
RobertRoberts 8y ago
I wrote a comment further down, but I wanted to say that I've gotten a lot of advice from business owners over the years. I have many family members, and my own great grandparents all the way down my generation were all business owners, including many, many relatives. I've had multiple business coaches and personal advisors as well, and across the board, all of them would tell me that you need to have a full and complete plan before even starting out creating a business. I did it by the seat of my pants and paid dearly through some near disasters. But I never had 50k invested up front. If you had a viable plan to make this work, you just need to work your plan. If you don't, you should seriously consider pulling out as much money as you can and take this experience as a solid life lesson. Those that won't quit don't really talk like you are right now in your original posting. My sense is that you have skills, talent in other areas and were trying to get happiness through an area of life you don't excel at. I hope you figure this all out, all the best to you.