Laws on nonprofit corporations were amended on December 1, 2008. There had been several types of nonprofit legal entities in Japan, but from now on, general incorporated association (IPPAN SHADAN HOUJIN) is the first-to-be-considered option for those who establish an entity for nonprofit purposes.
Overview of Amendment to Public-Interest Corporation System in Japan
In the past, public-interest corporations were enjoying tax benefit, though the establishment was difficult. The criteria for judging what is public interest were vague and left to the discretion of the authorities. The system had been criticized because it easily became the vehicle for just receiving subsidies and giving comfortable jobs to retired government officials.
Amendment in 2009 separated the public-interest corporation from tax benefits, and the corporation can be established just by registration, with or without public interest. New corporation system consists of general incorporated association (IPPAN SHADAN HOUJIN) and general incorporated foundation (IPPAN ZAIDAN HOUJIN). In terms of the manner of operation, a lot of elements of joint-stock corporation (KABUSHIKI KAISHA) and intermediate corporation (CHUKAN HOUJIN) were taken in.
The corporations with public interest can seek for the certification of public interest purpose, and once granted, they can enjoy tax benefits.
This site is intended to guide you on the laws related to these corporations.