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Reduction of capital amount of company in Japan

Public notice is necessary

In the case a company reduces registered capital amount, it needs to make public notice in official gazette ( news paper managed by government ) or other kind of media. 

This public notice says

” This company has determined to reduce capital amount.
If you creditors want to make objections against this decrease of capital amount, you need to make it within one month from this public notice.

And latest result of financial statement is as below.

Asset 100 yen/  Debt 50 yen

                       /  Shareholder’s equity 50 yen “

In this public notice, the company needs to include financial statement ( summary of latest balance sheet ).

In the case of newly established company

However if the company is still new and it has not passed fiscal year end, it does not need to include result of latest financial statement.

If your company does not need to post result of financial statement, it can save publishing cost by several ten thousand yen.

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