Japanese Business Glossary

法人格 (hojinkaku) is a Japanese term that refers to legal personality or corporate status. This concept means that an organization, such as a corporation or a non-profit entity, is recognized by law as having its own distinct identity, separate from its members or founders. As a legal entity, it can own property, enter into contracts, sue and be sued, and perform other legal actions in its name.

Obtaining hojinkaku is crucial for businesses and organizations because it provides a structure for operations and offers legal protections. For example, the personal assets of the company's shareholders or members are typically protected from business liabilities, which encourages investment and entrepreneurship. Furthermore, 法人格 allows for continuity beyond the lifespan or involvement of the original founders, ensuring that the organization can persist and operate independently.

In summary, hojinkaku endows an organization with its own legal rights and responsibilities, facilitating smoother and more secure business operations, legal clarity, and continuity.

個人事業 (kojin jigyo) is a Japanese term for a sole proprietorship, a type of business owned and operated by a single individual. In this business structure, the owner is personally responsible for all aspects of the business, including its debts, liabilities, and operations.

Starting a kojin jigyo is relatively straightforward and involves less regulatory compliance compared to other business structures like corporations. The owner can make decisions quickly without needing to consult with partners or a board of directors. However, the simplicity and autonomy come with the risk of personal liability, meaning the owner's personal assets can be used to cover business debts if necessary.

A sole proprietorship is common among freelancers, small business owners, and self-employed individuals in Japan. It allows for flexibility and direct control over the business while requiring careful management to balance the risks and rewards.

弁済金 (bensai-kin) is a Japanese term that refers to repayment or settlement money, which is the amount paid to satisfy a debt or obligation. This term is commonly used in legal and financial contexts, where it signifies the funds used to repay a loan, settle a financial dispute, or fulfill a contractual obligation.

When a debtor makes a payment to a creditor to discharge their debt, the amount paid is considered bensai-kin. This payment can be made in various forms, such as cash, bank transfer, or other agreed-upon methods. The concept of bensai-kin is crucial in ensuring that financial transactions are completed, obligations are met, and legal agreements are honored.

Maintaining proper documentation and records of bensai-kin transactions is important for both parties involved, as it provides evidence of the repayment and helps avoid future disputes. In summary, bensai-kin is the money used to fulfill a debt or obligation, playing a key role in financial and legal transactions.

証書 (shosho) is a Japanese term that refers to a certificate or official document that serves as proof of a certain fact or agreement. This document can be used in various contexts, such as legal, financial, and administrative matters, to verify the authenticity and validity of claims, transactions, or qualifications.

For example, a property deed is a type of shosho that proves ownership of real estate, while a diploma is a shosho that certifies the completion of a degree or educational program. In business, a shosho might be used to formalize agreements, such as contracts or warranties, ensuring that all parties involved have a clear and legally recognized record of their commitments and obligations.

弔慰 (choi) is a Japanese term that refers to expressions of condolence or sympathy offered to someone who is grieving the loss of a loved one. This concept is deeply rooted in Japanese culture and involves showing respect and support to the bereaved during their time of mourning.

Acts of choi can take various forms, such as sending condolence messages, offering flowers, attending the funeral or wake, and providing practical or emotional support to the grieving family. It is customary to offer a 弔慰金 (choikin), a monetary gift, to help with funeral expenses or as a gesture of support. These practices help to honor the deceased and offer comfort to those left behind, reflecting the values of compassion and communal solidarity.

The importance of choi in Japanese society underscores the significance of maintaining respectful and supportive relationships, particularly during life's most challenging times.

休業手当 (kyugyo teate) is a Japanese term for allowance or compensation paid to employees during periods when they are unable to work due to temporary business closures or operational stoppages. This payment is mandated by Japanese labor law to ensure that employees receive a portion of their wages when they are furloughed or their working hours are reduced due to reasons beyond their control, such as economic downturns, natural disasters, or public health crises like the COVID-19 pandemic.

The typical amount of kyugyo teate is at least 60% of the employee's average wages, although some employers may choose to provide a higher percentage. This allowance helps to mitigate the financial impact on employees who are unable to work through no fault of their own, ensuring they have some financial stability during challenging times.

For employers, providing kyugyo teate is part of their legal obligations and demonstrates their commitment to supporting their workforce. It also helps maintain employee morale and loyalty, contributing to a more resilient and cohesive organization.