A joint-stock company is entity within which shares of the company’s stock may be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares. Shareholders are able to transfer their shares to others with none effects to the continued existence of the corporate. This time, I will summarize 5 things you need to establishing a joint-stock company. It will be necessary when creating the articles of incorporation and registering, so let’s decide first.
1: Decide the name of a joint-stock company
Of course, you need to decide on a company name (trade name). The company name cannot be decided arbitrarily. Mainly, the following conditions must be met.
- Do not use special symbols in the company name
- Enter the characters as a joint-stock company (in the case of a limited liability company, a limited liability company)
- Do not use words such as “department” or “branch” that are mistaken for being part of a company. Even though it is not a bank, it is impossible to call it a “bank”.
In general, it’s okay if you do it within the bounds of common sense. In addition to these,
- Check if you can get the company name domain.
- Find out if there is a company with the same name on the Internet.
You should also be careful about such things.
2: Decide on the Office location of a joint-stock company
You need to write the location of the head office in the articles of incorporation. At first, you can go home. You may also want to take advantage of co working spaces and virtual offices.
3: Capital and the person who issues the capital
Capital is also necessary to run the company. Capital is allowed from 1 dollar. (When the Companies Act was enacted, it became possible to establish a company from 1 dollar in order to lower the hurdle for starting a business.)
However, in reality, it costs to establish a company and operate the initial office fee. Therefore, it is advisable to use the estimated cost of operation for the first few months to a year as capital. (That is, hundreds of thousands to millions of dollars) If you set it to
10 million dollars or more, you will be a taxable person of consumption tax from the first year, so avoid it unless you have a big reason. Also, with a start-up loan, you can only borrow up to twice the amount of capital, so if you are considering using it, it is a good idea to set a large amount.
Also, decide how to collect capital. The establishment method will change depending on how you collect it.
The self-sufficiency of the founding members is “establishment”
It is a pattern in which the founding members (of course, even one person is OK) use their own money to raise capital. In this case, it will be in the form of a start-up establishment. Most people who are thinking of starting a business will start up in this form.
If you want investors to submit it, “establish recruitment”
On the other hand, although it is a little special, if you want an outsider such as an investor to invest money, it will be in the form of recruitment establishment. In this case, the procedure will increase a little, so it is not recommended.
4: Whether to establish a board of directors of a joint-stock company
Consider whether to set up a board of directors.
In the first place, it is the directors (meetings) and the general meeting of shareholders that make decisions about the company. If you set up a company with a wholly-owned investment, it does not matter much because the director (1 person) = shareholder (1 person).
However, you should think about it when you start a business or invest in it with multiple people.
If you have a board of directors
- Three or more directors are required
- It is essential to have an auditor
There are restrictions such as. However, without a board of directors, many decisions will be made through a general meeting of shareholders. When soliciting investment from outsiders, it is troublesome to ask for opinions every time a decision is made, so it may be better to set up a board of directors.
5: Fiscal year of a joint-stock company
You are free to decide in what month the new year will begin. When deciding, it is a good idea to keep the following points in mind.
- Shift the closing period from the busy period
- Avoid being overwhelmed by the closing period when your main business is busy.
- If March or December is set as the closing date, the tax accountant may be busy and there may be few tax accountants who will undertake the closing work. (Maybe the price is high)
- Consumption tax will be exempted for the first two periods
- Set the settlement date as close to one year as possible from the date of establishment of the company. (The consumption tax exemption period has been extended and it is advantageous.)
- The settlement date does not need to be registered and can be changed later at the general meeting of shareholders.
If you decide these six things in advance, you can easily carry out the procedure for establishing a company after that.
Easy way to set up a company
Many procedures are required when establishing a company.
Are you worried about the complexity of preparation, the inability to concentrate on securing sales channels and increasing sales?
It is also possible to create electronic articles of incorporation, and the cost is free in the campaign
If you want to reduce costs, we recommend the electronic articles of incorporation, which do not require revenue stamps, rather than the paper articles of incorporation.
These are the 5 Things you need to establishing a joint-stock company. If you have more ideas please share it with us commenting below.