What I felt at "Buddhist altar closed"

I am Yoshida, president of Yamada Shusei Ltd., a professional apparel garment repair group in Nagaoka City, Niigata Prefecture.


On August 19, there was a "butsudan jimai" at my parents' house, which is over 40 years old.I had mixed feelings about my own discontinuation of something that had been handed down from my grandparents' generation.


At the same time, although it is by no means desirable, I thought that as a business owner, it is necessary to know about "how to close a company.


There are different terms for closing a company, such as "bankruptcy," "dissolution," "going out of business," and "liquidation," which have different meanings.


1)Bankruptcy is a situation in which a company is unable to pay its debts and continue its business.

 Bankruptcy includes legal proceedings such as bankruptcy and civil rehabilitation. In bankruptcy, all of the company's assets are sold and distributed to creditors. In addition, the company's managers and directors may be unable to conduct business for a certain period of time.


2)Dissolution means that the company loses its status as a legal entity.

 There are different types of dissolution, including voluntary dissolution and forced dissolution. Upon dissolution, the company must file income tax and consumption tax returns. It must also notify and report to the company's shareholders and creditors.


3)Going out of business means that a company ceases its business activities.

 There are different types of business closure, including temporary and permanent closure. When a company closes its business, it must withhold income and inhabitant taxes. The company also has to pay severance pay and unemployment insurance for its employees.


4)Liquidation is the process by which a company sells its assets and settles its debts.

 There are different types of liquidation, including voluntary liquidation and compulsory liquidation. In liquidation, the company must pay fees such as stamp tax and registration tax. There are also regulations governing the remuneration and responsibilities of the company's liquidator.


For employees, the preferred method is to be able to continue in business. 

 If the business can continue to operate, employees are more likely to retain employment and income. One method that allows the business to continue is civil rehabilitation. Civil rehabilitation allows a company to restructure its business while having its debts reduced.


For social impact, the preferred method is to fulfill responsibilities to creditors.

 Fulfilling responsibilities to creditors helps to protect the credibility and order of society. One way to fulfill responsibilities to creditors is through liquidation. Liquidation can settle debts by selling the company's assets and distributing them to creditors.


Just as no product is planned and manufactured to be discarded, no company is started to close. 

 In the management of our company, we will only do our best to make the best use of our initial thoughts.