2-(2) What is an NPO corporation?

Organizations that can become NPOs based on the Act on Promotion of Non-Profit Activities (NPO Law) must meet the following requirements:

A. The main purpose is to conduct non-profit activities (*)
(B) Not for profit (do not allocate corporate profits or assets to members)
(C) There are no unreasonable conditions for obtaining and losing employee qualifications.
D) The number of persons receiving officer remuneration is less than one-third of the total number of officers.
(E) The main purpose is not to engage in religious activities.
F. The main purpose is not to engage in political activities.
(G) It is not intended to recommend, support, or oppose a specific public official (including candidates) or political party.
He is not a gangster
(K) Not an organization under the control of gangsters or their members.
(C) The contents of the application documents, such as having at least 10 employees, conform to laws and regulations.

※Non-profit activities: Activities that fall under the activities listed in the separate table of the NPO Act, to increase the profits of unspecified and large numbers.
Activities aimed at contributing

The benefits of acquiring a legal personality can be, for example, as follows.

Oh, it is possible to register real estate or open an account with a corporate name.
A contract, such as an office rental contract, can be concluded under the corporate name.
C) NPO corporations are obliged to disclose information and accounting principles regarding activity reports, etc.
By ensuring the transparency of activities and financial conditions, we can gain the trust of citizens and society.

If you acquire a legal status, you will be required to pay corporate taxes, and if you hire an employee, you will be required to take out employee health insurance or labor insurance.
In addition, NPO corporations are obliged to operate corporations as stipulated in the NPO Law, such as information disclosure on activity reports, holding officers and general meetings, and accounting principles.

NPO corporations need to properly manage and operate themselves in accordance with the provisions of the NPO Law, other related laws and regulations, and the Articles of Incorporation. Here are some of the main ones.

NPO corporations are stipulated in the NPO Law, such as holding general meetings of employees at least once a year.

NPO corporations must have at least three directors and at least one auditor as officers.
The duties, term of office, etc. of officers are stipulated in the NPO Law, so it is important to fully understand the contents when taking office.
There are also provisions on persons who cannot become officers (reasons for disqualification of officers) and the number of relatives that can be included in officers (relatives of officers), etc.
In addition, if there is a change in officers after the establishment of the corporation, it is necessary to notify the competent authority (Yokohama City).

If an NPO changes the articles of incorporation, it must go through a resolution at the General Assembly. After that, depending on the content of the change, it is necessary to apply for certification or notify the competent authority.
In addition, if you change the entry, the Legal Affairs Bureau will need to change the entry.

NPO accounting is to be performed in accordance with the principles of truthfulness, clarity, and continuity of accounting based on regular bookkeeping.
※Although there is no legal requirement, the “NPO Accounting Standard” has been formulated as an accounting standard that is easy for citizens to understand and responds to the trust of society, adopting a financial statement system based on double-entry bookkeeping. You.

In addition, an NPO can conduct other businesses (business other than specified non-profit activities) unless there is a problem with the business related to specified non-profit activities, but if profits are generated in other businesses, The profit must be used for businesses related to specified non-profit activities.
In addition, accounting for other businesses must be performed separately from accounting for non-profit activities.

An information disclosure system is required from the viewpoint that NPOs should gain the trust of citizens by disclosing their information as much as possible and be nurtured by citizens.
For this reason, if there is a request from an employee or interested party of a corporation, the NPO corporation will provide all registered offices of the corporation, except for justifiable reasons, business reports, etc. It is necessary to have a list of officers and articles of incorporation.
In addition, in order to make these documents widely available to the public, the competent authority (Yokohama City) is required to be viewed and copied (copyed), so submission to Yokohama City is required.

The dissolution procedure of an NPO must go through certain procedures stipulated in the law and the Articles of Incorporation.
In addition, the remaining assets of the dissolved NPO corporation will not be returned to the provider, but must be handed over to other non-profit corporations specified in the Articles of Incorporation in advance, corporations stipulated by law, or national or local governments. Therefore, it is not allocated to each person.

NPO corporations can merge with another NPO after undergoing certain procedures such as resolutions at the general meeting and certification of the competent authority (Yokohama City).

Corporate tax and corporate business tax are levied on income from profitable businesses under the Corporation Tax Law, and other business income is exempt.
Regarding corporate prefectural tax and corporate municipal tax, if you are conducting a profitable business, "per capita rate" and "corporate tax rate" are taxed, and if you do not conduct a profitable business, only "per capita rate" is taxed Will be

In order to establish an NPO, it is necessary to submit an application attached to documents stipulated in laws and ordinances to Yokohama City and obtain certification for establishment.
Some of the submitted documents will be available for inspection for two weeks from the date of receipt.
Yokohama City will make a decision on certification or non-certification within 45 days after inspection. After the establishment is certified, it will be established as a corporation by registering.
(After registration is completed, please notify Yokohama City of completion of establishment registration without delay.)

• Flow of application for establishment certification, request for application
• Documents related to the application for certification of establishment
• Notification after completion of establishment registration