Business Succession – it is the process where the management, finances, human resource, products and processes of a company are ensured for the future. For most Japanese companies however, this process was once described as “handing over the management rights of the company to the next generation.” This is because Japan has a high percentage of companies that are unlisted and therefore the next generation could inherit the unlisted company shares among other assets in accordance to the succession plan.
Business Succession has long been used by family owned corporations to avoid payment of inheritance tax and in Japan was not prohibited by law. The “grace period” however came to an end in the year 2000 when the Japanese government revised the tax laws which gave in to the amendment of company laws regarding reorganization taxes. Since the reform of company laws regarding business succession tax, the process of implementation for companies especially during reorganization became too complex to handle on their own. Professional consultation became the norm and has been since then.
Not to look down upon the ability of these companies to handle the business succession process, but taxation is a sensitive matter in Japan, and tax avoidance as previously practiced by these family corporations can lead to serious consequences. This being the case, family owned companies that are planning for succession have to consider the help of a professional Business Succession Advisor. This can help create a structured process that will be in line with their long term and short term goals and at the same time research on avenues that can help alleviate tax burdens.
For businesses operating in Japan’s capital, Business Succession Tokyo based services are readily available. Consulting companies such as the Atakkusu Group are renowned especially for their utility services of free business consultations and workshops that educate companies in various business segments. The group also offers exclusive Business Succession Nagoya based services with its teams handling services similar to Tokyo such as:
Especially for small and medium sized companies that tend to be numerous in Japan, the take on professional advice from consultation companies like Atakkusu can give insight on how to balance strategy for short and long term goals. This means that the small and medium enterprise’s needs to think in terms of succession plans for the future ownerships of their businesses for their own benefits will be amply considered and thoroughly planned starting with the structure of succession by consulting on the legalities, finances and other aspects.
This is quite sensitive in Japan especially in regard to the reforms of tax laws. Professional advice incorporation by a company may benefit them in reducing tax burdens. That is, for example a business in succession must have the successor parties pay inheritance tax by use of treasury stocks when the current owner holds most of the treasury stocks, which is quite expensive. If this is the case and the owner has professional advice, he or she can do the transfer or sell the treasury bonds to the successor(s) only when the value of stock is low.
If there are matters that need accounting strategy, sales support consulting, successor coaching and many more, the Atakkusu group is the one stop place where these is assurance of high standard professionalism. For more details, visit http://xn--j2r801ab2u4ia.com.