Establishment costs

Japanese: 設立費用 - せつりつひよう

Necessary expenses for the incorporation of a company. A type of expense that constitutes incorporation expenses, including the cost of preparing articles of incorporation and prospectuses, advertising expenses for stock offerings and other purposes, rent for the incorporation office, communication expenses, and salaries of administrative staff. If unlimited expenditures were permitted, promoters would be more likely to make inappropriate expenditures or overestimates, which could undermine the company's financial foundation. Therefore, the Companies Act requires that this be listed as one of the irregular incorporation matters, with a limit to the amount (Article 28, Paragraph 4) and strict procedures such as an investigation by a court-appointed inspector (Article 33). However, fees for certification of articles of incorporation, stamp taxes, and remuneration to be paid to banks handling stock payments, etc., that are not subject to this risk, are borne by the company even if they are not listed in the articles of incorporation. Amounts not listed in the articles of incorporation, and amounts exceeding the amount listed, are borne by the promoters.

Source: Encyclopaedia Britannica Concise Encyclopedia About Encyclopaedia Britannica Concise Encyclopedia Information

Japanese:

会社の設立事務に関する必要費用。創立費を構成する費用の一種で，定款や目論見書などの作成費，株式募集その他のための広告費，設立事務所の賃借料，通信費，事務員の給料などからなる。支出を無制限に許容すると，発起人による不当な支出や過多な見積もりなどが行なわれやすく，会社の財産的基礎をそこなうおそれがあるので，会社法はこれを変態設立事項の一つとして定款にその限度額を記載させ（28条4号），裁判所の選任する検査役による調査（33条）などの厳重な手続きを要することとした。ただし，そのおそれのない定款認証手数料や印紙税，および株式の払込取扱銀行などに支払うべき報酬などは，定款に記載しなくとも会社の負担とされる。定款などに記載のない額，記載超過額などは発起人の負担となる。

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