Q42: When establishing a stock company in Japan, when must the capital be paid in?
ringo tax corporation
Japanese Certified Public Accountant ・Tax Accountant Hiroya Aihara
Ringo Tax Corporation
A: The payment of the capital must be made after the date of the articles of incorporation or the date when the founders determine the amount of money to be paid in for their contribution.
Q: Why must the timing of the capital payment be after the founders subscribe to the shares?
A: The reason is that if the amount and number of shares are not decided before the payment is made, it cannot be legally determined whether the paid amount will be recognized as capital. In other words, payment must be made after the articles of incorporation are created and all founders have agreed.
Q: How is the timing of the capital payment determined?
A: The payment of the capital takes place after the number of shares each founder subscribes to and the amount to be paid in is decided. If it occurs after the date of creating the articles of incorporation or after the day when all founders have decided on the amount, the application for company registration can be accepted even before the date of notarization of the articles by a notary public.
