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Approval of establishment of business cooperatives

Last Updated April 26, 2022

About approval of establishment

Small and medium-sized enterprises are generally at disadvantageous positions, such as underweight and low creditworthiness. Therefore, it is an effective means of response to gathering and organizing their peers. One of the means to organize this small and medium-sized enterprise is the union system. Approval is required to establish business cooperatives.


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

  • Authorization
  1. Establishment
  2. Amendments to the Articles of Incorporation
  3. Merger
  4. Special provisions for out-of-hospital use
  • Notification and acceptance of application
  1. Change of Directors
  2. Dissolution
  3. Financial Statements
  4. Approval of Convocation of General Meetings, etc.
  • Others
  1. Acceptance of appeals and exercise of necessary measures
  2. Business Improvement Order
  3. Dissolution order, etc.

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

Kanagawa Small and Medium Enterprises Association Central Association homepage

Overview of the current union system

Overview of the current union system
Overview Business cooperatives
(Small business cooperatives)
Corporate unions Cooperatives Shopping district promotion association
Purpose Modernizing and streamlining the management of union members and securing opportunities for management activities Securing workplaces for union members and streamlining management Integration of union members’ businesses, optimize scale, improve productivity and increase joint profits Improvement of the environment in the shopping district
Personality Human coupling Human coupling Human and physical coupling Human coupling
Business Joint projects to support the business of union members Business management of commerce, industry, mining, transportation, service, etc. Integration of union members' businesses, related businesses, and incidental businesses Improvement of the environment in shopping streets, joint economic business
Establishment requirements Participation of 4 or more businesses Participation of 4 or more individuals Participation of 4 or more businesses 1. At least 30 people of businesses engaged in retail commerce or service industries shall operate their business in close proximity with an area within the prefecture as a district.
Membership qualifications Small businesses in the district (generally small and medium-sized enterprises) Individuals and corporations Small and medium-sized enterprises (including estimated heirs of union members) and persons other than small and medium-sized enterprises within one-fourth as stipulated in the Articles of Incorporation Persons engaged in retail commerce or service industries in the district and those other than those specified in the Articles of Incorporation
Responsibility Limited liability Limited liability Limited liability Limited liability
Number of founders 4 or more 4 or more
(Limited to individuals)
4 or more 7 or more
Subscription Freedom Freedom Acceptance of the General Assembly is required Freedom
Voluntary withdrawal Freedom Freedom Equity transfer Freedom
Ratio of union members No More than 1/3 of all employees are members. No No
Ratio of engagement No More than half of all union members are engaged in union business. No No
1. Limit of Investment of Members 25/100 (35/100 in the case of merger or withdrawal) 25/100 (35/100 in the case of merger or withdrawal) Less than 50/100 (The total investment of all non-small and medium-sized enterprises is less than 50/100) 25/100
Voting Rights Equality (one vote per person) Equality (one vote per person) Equality (however, if stipulated in the Articles of Incorporation, voting rights in proportion to investment are also acceptable) Equality (one vote per person)
Non-member use limit As a general rule, up to 20/100 of the amount used by union members (with special exceptions)     Up to 20/100 of the amount used by union members
Cash dividends Dividends used and dividends paid up to 10% Cash dividends paid and dividends paid up to 20% Except as provided in the Articles of Incorporation Dividends used and dividends paid up to 10%
Basis Law Small and medium-sized enterprises cooperative law
(Established in 1949)
Small and medium-sized enterprises cooperative law
(Established in 1949)
Act on Organizations of Small and Medium Enterprises
(Established in 1958)
Shopping Street Promotion Association Act
(Established in 1962)

Inquiries to this page

Economic Affairs Bureau Small and Medium Enterprise Fisheries Promotion Department Small and Medium Enterprise Promotion Division

Telephone: 045-671-4236

Telephone: 045-671-4236

Fax: 045-664-4867

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

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Page ID: 344-791-215

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