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Approval of establishment of business cooperatives

Last update date April 26, 2022

Approval of establishment

Small and medium-sized enterprises are generally disadvantaged, such as undersizedness and low credibility. Therefore, gathering and organizing peers is an effective means of responding. One of the means to organize this small and medium-sized business is the union system. Approval is required to establish a business cooperative.


Refer to the left for procedures other than the approval of establishment.

  • Authorization
  1. Established
  2. Amendments to the Articles of Incorporation
  3. Merger
  4. Special provisions for non-employee use
  • Acceptance of notification and application
  1. Changes in Officers
  2. Dissolution
  3. Financial Statements
  4. Approval of the convocation of the General Meeting
  • Others
  1. Acceptance of complaints and exercise of necessary measures
  2. Operational Improvement Order
  3. Dissolution order, etc.

In the union, there are many items that need to be approved by the competent administrative agency and that require approval or notification, and the form of submission is stipulated in the Enforcement Regulations.
Please contact the Kanagawa Prefectural Small and Medium Enterprises Central Association for various procedures, including the application for approval to change the articles of incorporation, notification of change of officers, and submission of financial statements related to financial statements, which are relatively common.

Kanagawa Prefectural Small and Medium Enterprises Central Association website

Outline of the current union system

Outline of the current union system
Overview Business Cooperatives
(Business Cooperative Association)
Corporate Union Cooperatives Shopping district promotion association
Purpose Modernize, streamlining and streamlining management and securing opportunities for management activities Securing workplaces for union members, streamlining management Integrating the business of union members, optimizing scale, increasing productivity, and increasing common profit Improvement of environment in shopping district area
Personality Human coupling body Human coupling body Human/physical connectors Human coupling body
Business Joint business to support members’ business Business management of commerce, industry, mining, transportation, service, etc. Integration of union members’ businesses, related businesses, and incidental businesses Improvement of shopping district environment, joint economic business
Requirements for establishment Participation of four or more businesses 4 or more individuals participate Participation of four or more businesses 1. At least 30 people of businesses engaged in retail, commercial or service businesses that operate in close proximity with an area within the prefecture.
Membership Qualification Small businesses in the district (generally small and medium-sized enterprises) Individuals, corporations, etc. Small and medium-sized enterprises (including the estimated heirs of union members) and persons other than small and medium-sized enterprises within one-fourth when specified in the Articles of Incorporation A person engaged in retail or service business in the district and anyone other than those specified in the Articles of Incorporation
Responsibility Limited liability Limited liability Limited liability Limited liability
Number of people who started 4 or more people 4 or more people
(limited to individuals)
4 or more people 7 or more
Subscription Freedom Freedom Acceptance of the General Assembly is required Freedom
Voluntary withdrawal Freedom Freedom Due to transfer of equity Freedom
Ratio of union members No. More than one-third of all employees are union members. No. No.
Percentage of engagement No. More than half of all members are engaged in the union business No. No.
1. Investment limit of union members 25/100 (in the case of merger/withdrawal) 25/100 (in the case of merger or withdrawal) Less than 50/100 (the total investment of all non-small companies are less than 50/100) 25/100
Voting Rights Equal (one vote per person) Equal (one vote per person) (However, if stipulated in the Articles of Incorporation, voting rights in proportion to investment is also acceptable if stipulated in the Articles of Incorporation, voting rights in proportion to investment is also acceptable.) Equal (one vote per person)
Out-of-office use limit As a general rule, up to 20/100 of the amount used by members (exceptional cases)     Up to 20/100 of the Member’s usage
Dividends Dividends used and dividends paid up to 10% Dividends and dividends paid up to 20% Except as provided in the Articles of Incorporation Dividends used and dividends paid up to 10%
Basising method Small and Medium Enterprises Cooperative Law
(established in 1949)
Small and Medium Enterprises Cooperative Law
(established in 1949)
Act on the Organization of Small and Medium Enterprises
(established in 1958)
Shopping Street Promotion Association Act
(established in 1962)

For inquiries to this page

Small and Medium Enterprise Promotion Division, Small and Medium Enterprises, Economic Affairs Bureau

Phone: 045-671-4236

Phone: 045-671-4236

Fax: 045-664-4867

Email address: ke-keiei@city.yokohama.jp

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Page ID: 344-791-215

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