2-(2) What is a NPO corporation?

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

Oh, the main purpose is to carry out specific non-profit activities (*)
(B) Not aimed at profit (we do not allocate corporate profits or assets to members)
(C) There are no unreasonable conditions regarding the acquisition and loss of employee qualifications
D) The number of persons receiving executive compensation is less than one-third of the total number of officers
(E) The main purpose is not for religious activities
F. The main purpose is not for political activities
(G) It is not intended to recommend, support, or oppose a specific official (including candidates) or political parties
It's not a gangster
(K) Not an organization under the control of a gang or its members
(E) The contents of the application documents conform to laws and regulations, such as having 10 or more employees.

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

The benefits of acquiring a legal status can be considered, for example.

A. You can register real estate and open an account of a financial institution under the corporate name.
A contract, such as an office lease contract, can be concluded under the corporate name.
C. NPO corporations are required to disclose information and accounting principles regarding activity reports, etc.
By ensuring the transparency of activities and financial status, we can gain the trust of citizens and society.

In the case of acquiring a corporate status, there are tax obligations to pay corporate taxes, and employers are required to join employee health insurance or labor insurance when hiring employees are hired.
In addition, NPO corporations are required to operate corporations stipulated in the NPO Law, such as information disclosure on activity reports, holding officers and general meetings, and accounting principles.

NPO corporations are required to perform appropriate management and operation 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.

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

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

If an NPO changes its 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 notification to 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 formal bookkeeping accounting.
※Although there is no legal obligation, the “NPO Accounting Standard” has been formulated as an accounting standard that is easy for citizens to understand and respond to the trust of society, adopting a financial statement system based on double-entry bookkeeping. .

In addition, NPO corporations can conduct other businesses (businesses other than specific non-profit activities) as long as there is no obstacle to the business related to the specified non-profit activities. The profit must be used for business related to specific non-profit activities.
In addition, accounting for other businesses must be separately classified from accounting related to non-profit activities.

NPOs are required to have an information disclosure system from the viewpoint that it should be raised by citizens with the trust of citizens by disclosing their information as much as possible.
For this reason, if there is a request from an employee of the corporation or interested party for inspection, the NPO corporation shall notify all offices registered by the corporation, unless there is a justifiable reason. It is necessary to have the articles of incorporation.
In addition, these documents are required to be viewed and copied (copied) by the competent authority (Yokohama City) in order to make it widely available to the public, so submission to Yokohama City is required.

The dissolution procedure of NPO corporations must go through certain procedures stipulated in the law and the Articles of Incorporation.
In addition, the residual property of the dissolved NPO corporation is not returned to the provider, but is required to be taken over to other non-profit corporations stipulated in the Articles of Incorporation, 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 certain procedures such as voting at the general meeting and certification of the competent authority (Yokohama City).

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

In order to establish an NPO corporation, it is necessary to submit an application attached to the documents stipulated in laws and regulations 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 the inspection. After the certification of the establishment, it will be established as a corporation by registering.
(After registration is completed, please report the completion of establishment registration to Yokohama City without delay.)

• Flow of application for establishment certification, request for application
• Documents related to establishment certification application
• About notification after completion of establishment registration