Japanese Business Glossary

証書貸付 (Shosho Kashitsuke) refers to a loan agreement documented by a formal written contract or deed in Japan. This type of loan is typically used for larger sums of money and involves a detailed contract outlining the terms and conditions of the loan, including the principal amount, interest rate, repayment schedule, and any collateral required.

The loan agreement serves as a legally binding document that protects both the lender and the borrower by clearly defining their rights and obligations. It provides a clear record of the transaction and ensures that both parties have a mutual understanding of the loan terms.

Shosho Kashitsuke is commonly used in various financial transactions, such as personal loans, business loans, and mortgages. The formal documentation helps prevent disputes and provides a legal framework for resolving any issues that may arise during the loan period.

入済 (Irizumi) refers to a notation or stamp used in Japanese business and financial contexts to indicate that a payment or transaction has been completed and recorded. It signifies that the funds have been received and the corresponding accounting entries have been made, ensuring that the transaction is properly documented.

In practice, when a payment is received, such as for an invoice or a loan installment, the accounting department will mark the related document with an Irizumi stamp or notation. This serves as a confirmation that the transaction has been fully processed and helps maintain accurate financial records.

Using Irizumi helps organizations keep track of their financial activities, ensuring that all payments are accounted for and reducing the risk of errors or discrepancies in their accounting. It is an important part of financial management and internal control procedures, providing a clear audit trail for transactions and contributing to the overall accuracy and reliability of financial reporting.

収入証明書 (Shunyu Shomeisho) is an income certificate or income statement in Japan. This document serves as official proof of an individual's income and is typically issued by an employer, tax authority, or other relevant institution. The Shunyu Shomeisho includes details such as the individual's name, the amount of income earned over a specific period, and any deductions or taxes withheld.

This certificate is often required in various situations, such as applying for loans, renting property, enrolling in educational programs, or any other scenario where proof of income is necessary. It provides lenders, landlords, or institutions with the necessary information to assess an individual's financial stability and ability to meet financial commitments.

The process of obtaining a Shunyu Shomeisho usually involves submitting a request to the issuing entity, which then verifies the income details and prepares the document.

子会社 (Kogaisha) refers to a subsidiary company in Japanese. A subsidiary is a company that is controlled by another company, known as the parent company or holding company. This control is typically established through ownership of more than 50% of the subsidiary’s voting shares, giving the parent company significant influence over the subsidiary's management and operations.

Kogaisha operates as a separate legal entity from the parent company, meaning it has its own assets, liabilities, and financial statements. However, the parent company can influence the subsidiary's strategic decisions, business policies, and overall direction. This structure allows the parent company to diversify its business operations, enter new markets, and manage risks more effectively by spreading them across different entities.

In corporate structures, having Kogaisha can offer several advantages, such as tax benefits, improved management efficiency, and the ability to focus on specific business areas. It also provides a mechanism for organizing and managing various business activities under a larger corporate umbrella while maintaining distinct operational entities.

総会 (Sokai) refers to a general meeting or assembly, commonly held by organizations, corporations, or associations in Japan. This gathering involves the members or shareholders of the entity coming together to discuss and decide on important matters related to the organization’s operations, governance, and future direction.

In the corporate context, a sokai typically refers to a shareholders' meeting, where key issues such as the election of directors, approval of financial statements, distribution of dividends, and other significant decisions are discussed and voted upon. These meetings are crucial for ensuring transparency, accountability, and participation of the shareholders in the company’s decision-making process.

Annual General Meetings (AGMs) are a common type of sokai, held once a year, where standard agenda items are addressed. Extraordinary General Meetings (EGMs) can also be convened as needed to address urgent or specific issues that arise outside the regular schedule.

The sokai provides a platform for communication between the company’s management and its shareholders, enabling them to express their views, ask questions, and make informed decisions that affect the organization's future. It is a fundamental aspect of corporate governance, ensuring that the interests of all stakeholders are considered and respected.

社宅 (shataku) refers to company housing or corporate dormitories in Japan. These are residential accommodations provided by companies to their employees as a benefit. Shataku can take the form of apartments, houses, or dormitory-style living arrangements and are typically located near the workplace or in convenient locations for commuting.

Providing shataku is a common practice among Japanese companies, particularly large corporations, as it offers several advantages. For employees, it provides affordable and convenient housing options, often at a lower cost than market rates. This can be especially beneficial for new hires, young professionals, or employees relocating from other regions.

For employers, offering shataku helps attract and retain talent by providing a valuable perk that enhances the overall compensation package. It can also foster a sense of community and loyalty among employees, as living in company-provided housing can facilitate stronger relationships and camaraderie among coworkers.

The conditions and policies regarding shataku, such as eligibility, rent, and duration of stay, are typically outlined by the company. Employees may be required to follow certain rules and regulations while residing in company housing. Overall, shataku serves as an important employee benefit that supports the well-being and stability of the workforce.