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Angel investor and tax of Japan

Here I want to introduce you “Angel Investors”

If someone ( Hereinafter called Mr Young ) wants to launch business in Japan, but unfortunately Mr Young does not have enough money.
In that case Young will tries to find investors ( Hereinafter called Elder)to Young’s  business.
Mr.Young will ask judicial scrivener to form company in Japan and Elder becomes shareholder of the company. But it is not easy to find such Elder. But if there is tax merit to Elder, it might be helpful to lure the Elder.
In Japan, there is system of “Angel Investors (エンジェル投資家)”

It is still not common in Japan, but in some foreign countries it is a little common to find Angel Investors.

Even if they are called “Angel”, they are not interested in investment without any profit. In the case of individual investment, if  Mr. Young’s business is closed, Elder cannot collect money. It is high risk investment.

So, it is not easy to lure prospective Mr.Elder.
But if there’s merit toward Mr.Elder, it will be easier to persuade Elder.

This tax merit is organized by Ministry of Economy, Trade and Industry in Japan.

When Mr Young starts some kind of business (almost every kind business is applicable), and Mr. Elder invests by cash, Mr.Elder can use this tax merit.

For example, Mr.Young starts Bakery shop in Tokyo. And Mr. Elder invested 10,000 USD for Mr. Young.

When Mr. Elder is office worker and his annual income is 50,000 USD and Mr.Elder invested 10,000 USD, Mr.Elder can apply refunding of tax of 2,000 USD.

The amount of refunding differs depending on Mr. Elders’s income and invested amount.

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