Liquidation and Closing a Company — Overview

The formal liquidation procedure for a 株式会社 includes a shareholders' resolution, appointing a liquidator, a public-gazette announcement, a minimum two-month wait for creditors, and distribution of the remainder. In practice the process often drags on for months, especially with neobanks. A company is a separate legal entity, so a director losing their visa status does not automatically close the company or freeze its accounts, though banks may tighten their checks. The liquidation procedure for a 株式会社 runs: 1) a shareholders'/board resolution to liquidate; 2) appointing a liquidator (usually the director); 3) filing with the Legal Affairs Bureau (about 30,000 yen); 4) a mandatory announcement published in the official gazette (官報, kanpo), which costs roughly 40,000 yen for one paragraph; 5) a mandatory minimum two-month wait for creditors, even with no real creditors; 6) settling debts, salaries, and taxes; 7) distributing the remainder among equity holders in proportion to their shares; 8) closing the account. In practice, liquidation is an extremely long and painful process — in one case it took 8–10 months, made especially difficult by a bank with no physical branches (a neobank). The bank sends a token amount to the closing company's account (for example, 48 yen) as part of the procedure, but it cannot be withdrawn since a transfer costs 100 yen, and the account cannot be closed without being zeroed out — this had to be resolved through paper correspondence. After the corporate account is closed, all expenses tied to the former company (for example, an accountant's invoice) must be paid out of the director's own pocket, with no way to deduct them from company taxes, since the company no longer exists. Some "ordinary" Japanese people simply abandon a company, which is then forcibly liquidated after roughly 13 years, with its own set of quirks — not recommended for visa/residence-card holders because of the risk to their status. A company (法人) is a separate legal entity: the deportation of a foreign director does not automatically close the company, and the company's bank accounts are technically not automatically frozen when the owner loses their visa, although banks may start requiring regular KYC checks on the director. There is also an opposite experience (not confirmed by everyone): when the owner-director's visa expires, banks may freeze corporate accounts too, not just personal ones. Legal ways to continue the business after losing BM status include hiring a nominal director (including via a work visa such as ITPEC or Tokutei Gino), staying on a work visa oneself, or becoming an employee of one's own company.