Determining whether a debtor is a real, registered company is an important first step when collecting a debt. Many individuals who have never incorporated their business will still print business cards with a business’s name and logo in order to seem more like a reputable company. However, searching the list of registered companies in Japan provides a quick and effective way to determine whether the debtor is a real company or just an individual pretending to own an incorporated business.
It is important to know whether a debtor is an individual or a corporation because it is often easier to collect debts from companies, rather than individuals, in Japan. Companies have set locations and often own property or other unmovable assets that can’t quickly be disposed of. Individuals, on the other hand, are more easily able to hide their assets and, in worst case scenarios, can simply move their address in an attempt to hide from creditors or future legal action.
It can be difficult for individuals to search for registered companies so consulting with an attorney is advised. If you have any questions about enforcing a debt in Japan, please contact our office to set up a legal consultation.