A company liquidation in Japan, also named winding up, refers to the procedure through which the assets of a business entity are liquidated and the entity is closed, or deregistered.
In this article, our company formation advisors in Japan explain the different aspects involving such a procedure in the country.
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Company liquidation procedure in Japan
In order to effectuate a company liquidation in Japan, the following procedure is required:
• Preparing the assets inventory and the balance sheet on the dissolution date, as well as the acquisition of approval decided in the shareholder meeting;
• Drawing up a public notice which should contain a report on credits and a notification forwarded to the known creditors. Our company registration consultants in Japan can offer more details on this public notice;
• Submitting the dissolution notification of the business entity to the government tax agency;
• Filing a final return for the dissolution business year;
• Collecting the credits, liabilities repayment and conversions into cash of real estate;
• Determining and distributing the residual assets;
• Making up a statement of accounts for the business year of the liquidation and an approval acquisition of the liquidation completion;
• Submitting the final returns for the business year of the liquidation;
• Registering the liquidation completion;
• Submitting the liquidation completion notification to the government tax agency.
Special liquidation procedures in Japan
Special liquidation procedures in Japan can be accessed only by stock companies. If a debtor wishes to go through such procedures, the debtor’s shareholders have to pass a resolution for the dissolving of the debtor first.
This resolution needs the positive vote of two-thirds or more of the shares, after which the business must name a liquidator. Our Japan company formation specialist can provide further details on this matter.
For more about a company dissolution in Japan, or if you are interested in setting up a company in Japan, we can help you with the right guidance; please contact us.