Formation
A kabushiki gaisha may be started with capital as low as ¥1, making the total cost of a K.K. incorporation approximately ¥240,000 (about US$2,500) in taxes and notarization fees. Under the old Commercial Code, a K.K. required starting capital of ¥10 million (about US$105,000); a lower capital requirement was later instituted, but corporations with under ¥3 million in assets were barred from issuing dividends, and companies were required to increase their capital to ¥10 million within five years of formation.
The main steps in incorporation are the following:
- Preparation and notarization of articles of incorporation
- Receipt of capital, either directly or through an offering
The incorporation of a K.K. is carried out by one or more incorporators (発起人, hokkinin?, sometimes referred to as "promoters"). Although seven incorporators were required as recently as the 1980s, a K.K. now only needs one incorporator, which may be an individual or a corporation. If there are multiple incorporators, they must sign a partnership agreement before incorporating the company.
Read more about this topic: Kabushiki Gaisha
Famous quotes containing the word formation:
“Those who were skillful in Anatomy among the Ancients, concluded from the outward and inward Make of an Human Body, that it was the Work of a Being transcendently Wise and Powerful. As the World grew more enlightened in this Art, their Discoveries gave them fresh Opportunities of admiring the Conduct of Providence in the Formation of an Human Body.”
—Joseph Addison (1672–1719)
“That for which Paul lived and died so gloriously; that for which Jesus gave himself to be crucified; the end that animated the thousand martyrs and heroes who have followed his steps, was to redeem us from a formal religion, and teach us to seek our well-being in the formation of the soul.”
—Ralph Waldo Emerson (1803–1882)
“The formation of an oppositional world view is necessary for feminist struggle. This means that the world we have most intimately known, the world in which we feel “safe” ... must be radically changed. Perhaps it is the knowledge that everyone must change, not just those we label enemies or oppressors, that has so far served to check our revolutionary impulses.”
—Bell (c. 1955)