Q43: Why is it necessary to transfer the capital into a personal account at the time of company establishment?
ringo tax corporation
Japanese Certified Public Accountant ・Tax Accountant Hiroya Aihara
Ringo Tax Corporation
A: The reason is for the Legal Affairs Bureau to verify the actual payment of the capital.
explanation
The transfer of capital is regulated by the Companies Act. When accepting shares of a stock company at its establishment, the full amount of money related to the investment must be paid.
The Legal Affairs Bureau verifies that this capital has actually been paid. The destination for the transfer is a bank account designated by the promoter. If the promoter is an individual, it will be their personal account; if a corporation, it will be the corporation’s account. Even if there are multiple promoters, it is possible to transfer to each of their accounts.
If the promoter does not have an account in Japan, the transfer can be made to the account of a director or representative director. However, a power of attorney authorizing the receipt of the transferred capital is required.
Also, if none of the parties have a residence in Japan, it is possible to transfer to a third party's account, but a power of attorney is similarly required.
The transfer of capital is an important step in the establishment of a company, and passing the Legal Affairs Bureau's review requires proof that the capital has indeed been transferred.
