Japanese Business Glossary

誓約書 (Seiyakusho) is a written oath or pledge, often referred to as a written pledge or a letter of commitment. In Japanese legal and business contexts, a Seiyakusho is a formal document where an individual or organization makes a solemn promise or commitment to adhere to certain terms, conditions, or obligations.

This document can be used in various situations, such as employment agreements, confidentiality agreements, non-compete clauses, or compliance with company policies and regulations. By signing a Seiyakusho, the signatory acknowledges their understanding and acceptance of the stipulated conditions and agrees to fulfill them. This written commitment helps ensure accountability and provides a clear record of the promises made, which can be referred to in case of disputes or breaches of agreement. The use of Seiyakusho underscores the importance of trust, integrity, and responsibility in professional and legal matters.

保証 (Hosho) refers to a guarantee or assurance provided to ensure that certain conditions or promises will be fulfilled. In Japanese legal and business contexts, hosho often involves a commitment by one party to take responsibility for the performance, quality, or obligations of another party.

There are various types of hosho, such as product warranties, service guarantees, and financial guarantees. For instance, a product warranty assures customers that a product will function as expected for a specified period, and if it doesn't, the manufacturer or seller will repair, replace, or refund it. In financial contexts, a guarantor may promise to pay back a loan if the original borrower fails to do so.

注文請書 (chumon uke sho) is an order confirmation or acknowledgment of order in Japanese business practice. This document is issued by a seller to confirm the receipt and acceptance of an order placed by a buyer. It serves as a formal agreement between the buyer and the seller, detailing the terms and conditions of the order, such as the description of goods or services, quantities, prices, delivery dates, and payment terms.

The chumon uke sho helps ensure that both parties have a clear understanding of the transaction, minimizing the risk of misunderstandings or disputes. It is an essential part of the order processing and fulfillment process, providing a written record that the seller has committed to fulfilling the order as specified. By issuing an chumon uke sho, the seller confirms their obligation to deliver the goods or services according to the agreed-upon terms, reinforcing the professionalism and reliability of the business relationship.

事業年度 (jigyo nendo) refers to the fiscal year or business year in Japan. It is the annual accounting period used by a company or organization to prepare financial statements and reports. The jigyo nendo can differ from the calendar year and is determined by the company based on its business cycle, operational needs, or regulatory requirements.

In Japan, many companies choose their jigyo nendo to start on April 1 and end on March 31 of the following year, aligning with the Japanese government’s fiscal year. However, businesses have the flexibility to set their own fiscal year as long as it spans twelve consecutive months.

The jigyo nendo is important for various financial and administrative processes, including budgeting, tax filings, and performance evaluations. It provides a structured timeframe for companies to assess their financial health, make strategic decisions, and comply with legal obligations. Understanding and managing the jigyo nendo effectively is crucial for maintaining accurate financial records and ensuring regulatory compliance.

身元保証人 (mimoto hoshonin) refers to a guarantor or surety who vouches for the identity, character, and conduct of another person. In Japanese legal and business contexts, a mimoto hoshonin is often required in situations where trust and reliability are critical, such as employment, rental agreements, or loan applications.

The role of a mimoto hoshonin involves taking responsibility for the actions or obligations of the individual they are vouching for. If the individual fails to meet their responsibilities, the mimoto hoshonin may be held accountable or required to cover any resulting losses or damages. This provides an added layer of security and assurance for the party relying on the individual's performance or behavior.

Mimoto hoshonin is commonly used in employment to ensure that new employees are trustworthy and reliable. It can also be required when renting property, where the guarantor promises to cover rent or repair costs if the tenant defaults. In financial contexts, a guarantor might assure repayment of a loan if the borrower is unable to pay. This concept underscores the importance of trust and accountability in various personal and business relationships.

現物出資 (genbutsu shusshi) refers to capital contribution in kind, where assets other than cash are used as investment in a company. This can include tangible assets such as real estate, machinery, equipment, or vehicles, as well as intangible assets like intellectual property, patents, or trademarks.

In Japan, the process of genbutsu shusshi involves evaluating the value of the contributed assets to determine their equivalent monetary worth. This valuation must be fair and accurate to ensure that the capital structure of the company reflects the true value of the contributions. Often, a certified public accountant or a professional appraiser may be required to assess the value of these assets to ensure compliance with legal standards and to protect the interests of all stakeholders involved.

Genbutsu shusshi is commonly used in situations where the contributing party may have valuable assets but lacks sufficient cash. It allows companies to acquire necessary resources without immediate cash expenditure and can be a strategic way to leverage existing assets for business growth and development. This method of capital contribution helps diversify the company's asset base and can provide significant operational advantages depending on the nature of the contributed assets.