Even a foreign capital company located in Japan needs to prepare financial statements in accordance with regulations of the Companies Act, if its capital stock exceeds 500 million yen. And then, it is, in principle, not permitted to prepare financial statements in English. The Companies Act demands businesses with capital stock more than 500 million yen to prepare financial statements after taking audits, and its purport is to protect shareholder’s rights. However, the parent company overseas would not able to read financial statements written in the Japanese language. Therefore, the preparation of financial statements in Japanese would not be considered a less important job for in-charge of foreign capital companies. Nonetheless, the preparation of financial statements is required by the Companies Act and is subject to the audit by an external auditor for “Large Company”. It cannot be avoided from the perspective of tax file purposes.
We provide services to prepare financial statements in accordance with the Companies Act in order to reduce the burden of accounting manager of foreign-affiliated companies. In addition, we will also be involved in communication with external auditors and back up client’s accounting operations of the accounting staff, as necessary,
The most important thing is to outsource less important matters. For the accounting manager, to focus on the monthly reporting which is more evaluated by the parent company should be prioritized. Please take our services into your option if you are annoyed with such situations.
Examples of company who should consider our services
- The company which needs to prepare Financial Statements in accordance with “the Companies Act” because of capital stock more than 500 million yen (or liabilities more than 20 billion yen), however, has little knowledge about regulations and accounting standards in Japan.
- The company which needs to prepare Financial Statements in accordance with “the Companies Act”, however, would like to outsource it completely because it would not relate to the manager’s evaluation.
- The company which would like to outsource the preparation of Japanese-versioned Financial statements in order to concentrate on reporting to the parent company.