Japanese Business Glossary

公益法人 (koeki hojin) refers to a Public Interest Corporation in Japan. This type of legal entity is established to operate for the public good and engage in activities that benefit society. These corporations can focus on various fields such as education, social welfare, culture, science, and environmental protection.

Public Interest Corporations are granted special status by the government, which often includes tax benefits and eligibility for public funding or donations. To be recognized as a koseki hojin, an organization must meet specific criteria and demonstrate that its activities serve the public interest. The organization must also operate with transparency and accountability, ensuring that its resources are used effectively for its intended public benefit purposes.

A koseki hojin can take different forms, including a Public Interest Incorporated Association (公益社団法人 = koeki shadan hojin) and Public Interest Incorporated Foundation (公益財団法人 = kōeki zaidan hōjin). These entities play a crucial role in addressing social issues and contributing to the well-being of the community.

福利厚生費 (fukuri koseihi) refers to welfare and benefit expenses in Japan. These expenses are related to the various benefits and services provided by employers to enhance the well-being and quality of life for their employees. They are a part of the overall personnel costs for a company.

Fukurei koseihi can include expenses such as health and safety measures, employee recreational activities, company-sponsored events and social gatherings, subsidies for meals, transportation, and housing, health insurance premiums, and retirement benefits and pension contributions.

These benefits aim to create a supportive and healthy work environment, increase employee satisfaction and motivation, and reduce turnover. By investing in welfare benefits, companies can improve employee relations, foster a positive workplace culture, and ultimately boost productivity and organizational performance.

信義則 (shingi soku) refers to the principle of good faith in Japan. This legal concept mandates that parties engage in honest and fair dealings in their contractual and legal relationships. It emphasizes trust, fairness, and integrity, ensuring that parties act in a manner that is reasonable and just, avoiding deceit or unfair advantage.

In the context of contracts and obligations, shingi soku requires that both parties fulfill their duties and exercise their rights in a way that respects the mutual trust and reliance inherent in their relationship. This principle is fundamental in Japanese civil law and influences various aspects of legal and business interactions, promoting a culture of ethical conduct and reliability.

損金算入 (sonkin sannyū) refers to the inclusion of deductible expenses in Japan. This term is used in the context of tax accounting and refers to the process of recognizing certain expenses as tax-deductible when calculating taxable income for a business.

When an expense is categorized as sonkin sannyu, it means that the cost can be subtracted from the company's gross income to determine its taxable income. This reduces the overall tax liability of the business. Examples of such deductible expenses include operating costs, salaries, rent, utilities, and depreciation of assets.

Accurate identification and documentation of sonkin sannyu expenses are crucial for effective tax planning and compliance with tax regulations. Properly managing these deductions helps businesses optimize their tax obligations and maintain accurate financial records.

保証債務 (hosho saimu) refers to a guarantee obligation in Japan. This term describes a commitment made by a guarantor to assume responsibility for another party's debt or obligation if that party fails to fulfill their financial obligations. The guarantor essentially promises to repay the debt or perform the obligation on behalf of the debtor.

Hosho saimu is commonly used in various financial and business contexts, such as loan agreements, lease contracts, and business transactions. For example, when an individual or a business applies for a loan, a guarantor may be required to provide a hosho saimu to the lender, assuring that the loan will be repaid even if the borrower defaults.

The guarantor's obligation under this gaurantee obligation becomes effective if the principal debtor fails to meet their obligations. This provides an added layer of security for creditors, as they have a recourse to recover their funds from the guarantor in case of default.

役員 (yakuin) refers to an officer or executive in Japan. This term is used to describe individuals who hold key management positions within an organization, such as directors, board members, or corporate officers. Yakuin are responsible for making strategic decisions, overseeing the company's operations, and ensuring that the organization complies with legal and regulatory requirements.

The roles and responsibilities of yakuin can vary depending on the structure and size of the organization, but they typically include setting policies, managing resources, and representing the company in external matters. In a corporation, a yakuin might include positions such as the president, vice president, chief executive officer (CEO), chief financial officer (CFO), and other senior management roles.

Being a yakuin involves significant responsibility and accountability, as these individuals are entrusted with guiding the organization towards its goals and maintaining its integrity and reputation.