Transfer under the PIC Laws

Current status of [Group A] 1,590 foundations

PICs under the Civil Code Article 34 must obtain the legal status as a PIC or a GNC under the new PIC laws within 5 years after their enactment in 2008. As of the end of March 2013, 18,464 applications were filed for change of legal status (including authorization for PICs and GNCs), which covered 99% in total. Among them, 8,544 applications were for transition to a PIC, while 9,766 were for a GNC. Approval of transfers was made to 7,692 applications to PIC legal status (1,910 under the Cabinet Office; 5,782 under Prefectures), and also to 8,484 applications for GNC legal status (1,861 under the Cabinet Office; 6,624 under Prefectures). The actual process of transfer goes through an approval of official report à issuance of authorization à liquidation of former corporations or registration of new corporations. There is a gap in the number of corporations between the existing reports and ones with new legal status. As stated before, corporations who received the official approval can select the date of transfer registration. Most of the corporations make registration on April 1; because their business years run from April to March, they can minimize accounting burdens involving the transfer by choosing April 1 as the date of such registration.