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Founding a company, working with freelancers, paying tax: the Companies Act (会社法), the Act on Ensuring Proper Transactions Involving Specified Entrusted Business Operators (特定受託事業者に係る取引の適正化等に関する法律), which protects freelancers, and the tax Acts set the rules. Ask before you sign or file, and keep the article that answers.

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Example questions

The answers here are examples written for these pages, to show how an answer rests on the law. They are not legal advice: for your own case, read the official text and ask a qualified professional.

Example question

What must the articles of incorporation of a stock company say?

Five things: the company's purpose, its trade name, the location of its head office, the value of the property contributed at incorporation (or its minimum), and the names and addresses of the incorporators.

Article 27, paragraph (1)

Companies Act 会社法

  1. Articles of incorporation of a stock company must specify or record the following matters:

    株式会社の定款には、次に掲げる事項を記載し、又は記録しなければならない。

  2. (i)

    purpose;

    目的

  3. (ii)

    trade name;

    商号

  4. (iii)

    location of the head office;

    本店の所在地

  5. (iv)

    value of property to be contributed at the incorporation or the lower limit thereof;

    設立に際して出資される財産の価額又はその最低額

  6. (v)

    name and address of the incorporator.

    発起人の氏名又は名称及び住所

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Example question

We're hiring a freelance designer. What do we have to give them in writing?

As soon as you place the work, you must state what they are to deliver, the fee, the payment date and the other matters the Fair Trade Commission's rules list, in writing or electronically.

Article 3, paragraph (1)

Act on Ensuring Proper Transactions Involving Specified Entrusted Business Operators 特定受託事業者に係る取引の適正化等に関する法律

  1. If an entrusting business operator entrusts its business to a specified entrusted business operator, the entrusting business operator must immediately and clearly indicate to the specified entrusted business operator, in writing or by electronic or magnetic means (meaning methods using information and communications technology provided for by the Rules of the Fair Trade Commission, including a method using electronic data processing systems; the same applies below in this Article), the details of the work to be performed by the specified entrusted business operator, the remuneration amount, the date of payment and other matters, pursuant to the provisions of the Rules of the Fair Trade Commission; provided, however, that if there are reasonable grounds not to determine the details of a matter, that matter does not have to be indicated. In that case, the entrusting business operator must clearly indicate that matter to the specified entrusted business operator in writing or by electronic or magnetic means immediately after the details of that matter have been determined.

    業務委託事業者は、特定受託事業者に対し業務委託をした場合は、直ちに、公正取引委員会規則で定めるところにより、特定受託事業者の給付の内容、報酬の額、支払期日その他の事項を、書面又は電磁的方法(電子情報処理組織を使用する方法その他の情報通信の技術を利用する方法であって公正取引委員会規則で定めるものをいう。以下この条において同じ。)により特定受託事業者に対し明示しなければならない。ただし、これらの事項のうちその内容が定められないことにつき正当な理由があるものについては、その明示を要しないものとし、この場合には、業務委託事業者は、当該事項の内容が定められた後直ちに、当該事項を書面又は電磁的方法により特定受託事業者に対し明示しなければならない。

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Example question

How long can we take to pay a freelancer?

If your business has employees, or is a company with two or more officers, the payment date must fall within 60 days of receiving the work, and as early as possible, whether or not you inspect it first.

Article 4, paragraph (1)

Act on Ensuring Proper Transactions Involving Specified Entrusted Business Operators 特定受託事業者に係る取引の適正化等に関する法律

  1. If a specified entrusting business operator entrusts its business to a specified entrusted business operator, the date of remuneration payment must be set on the earliest possible date that is no later than 60 days from the day on which the specified entrusting business operator receives the work from the specified entrusted business operator (if the business is entrusted pursuant to Article 2, paragraph (3), item (ii), from the day on which the service was provided by the specified entrusted business operator; the same applies in the following paragraph), regardless of whether or not the specified entrusting business operator inspects the details of the work performed by the specified entrusted business operator.

    特定業務委託事業者が特定受託事業者に対し業務委託をした場合における報酬の支払期日は、当該特定業務委託事業者が特定受託事業者の給付の内容について検査をするかどうかを問わず、当該特定業務委託事業者が特定受託事業者の給付を受領した日(第二条第三項第二号に該当する業務委託をした場合にあっては、特定受託事業者から当該役務の提供を受けた日。次項において同じ。)から起算して六十日の期間内において、かつ、できる限り短い期間内において、定められなければならない。

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