October is here, and I suddenly realized it’s Autumn. In Japan, we say “Ichijitsu Senshu” (one thousand autumns in a day): meaning it feels like a day has lasted a thousand years. These days, with my tight and busy schedule, I wish I only had one Autumn in my day! I hope all of you are enjoying the Autumn in your day.
Here at Legal Associates Office Boston, we provide a variety of consultation services to a wide range of clients. In addition to consultations regarding residence status or naturalization, we also offer services such as company establishment, corporate legal matters, and international inheritance.
Business people often consult us about corporate legal matters concerning a company’s capital increase. Although the most common method may be to pay an amount equivalent to the increase in capital into the company’s account, other methods may be suited to a company’s particular situation.
For example, a company director who lends money to the company can make an equity investment based on their monetary claim against the company. The excess debt is eliminated, and this is known as a debt-equity swap (DES), whereby the debt owed by the company is converted into equity. It is one of the methods of financial improvement, and from the lender’s point of view, it means an equity investment based on the debt the company owes to the lender.
However, when using this way of increasing capital via debt swap equity, it is recommended to consult with a tax accountant, as the capital increase may result in an increased tax burden. Our firm cooperates with other professionals to provide a one-stop solution for each unique situation.
The above scenario exemplifies the many services beyond residence status support or naturalization application offered by Legal associates office Boston. At Legal Associates Office Boston, we can arrange consultations on various legal issues for business owners and clients.
Summer has gone so quickly, so I hope to enjoy some autumn before it passes.
Disclaimer: While every effort has been made to ensure that the information on this article is accurate at the time of posting, it is not intended to provide legal advice as individual situations will differ. If you do require advice or wish to find out more about the information provided and related topics, please contact the author.
Text by: Masayo Boston (Certified Administrative Procedure Legal Specialist), October 2022
Legal Associates Office Boston (Fukuoka City)
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