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How to establish an Incorporated Educational Institution ( Gakko houjin )in Japan

In this page, I will explain about establishing an Incorporated Educational Institution ( Gakko hojin = 学校法人 )
In the case a person who wants to establish an Incorporated Educational Institution ( Gakko hojin = 学校法人) she, needs to at least decide the following matters  in the articles of endowment ( This is a kind of articles of incorporation. In Japanese language, this is called “Kifu koi” = 寄付行為 ).

And she must obtain authorization ( Ninka ) from the Competent government agency.

( If the institution intends to establish private high school, private elementary school, prefectural governor has its jurisdiction. )
Competent government agency shall check the content of the article of endowment.

(1) the purpose

For example, “establishing Private School. ”

(2) the name

For example, “Tokyo Incorporated Educational Institution”

(3)  the name of the Private School established by the institution, and if the Private School will have courses, university faculties, graduate Schools, graduate School departments, university departments or divisions, the names or types thereof

For example, “Tokyo international school. ”

(4) the location of its office.

For example, “This Incorporated Educational Institution shall have its head office in Chuo-ku, Tokyo.”

(5)  the number of officers ( Yakuin ) , term of office, and means of appointment and dismissal of officers, and other provisions concerning officers.

In the case of Incorporated Educational Institutions,  five or more directors and two or more auditors are required.
And she cannot incorporate this institution if there is a spouse or relatives of three degree of kinship among these officers.
Because, there is  a public aspect in case of this institution.

(6) the provisions concerning the board of directors ( riji kai )

(7) the provisions concerning councilors ( Hyogi in, 評議員 ) and the board of councilors

(8) the provisions concerning assets and accounting

(9) if it carries out business for profit, the type of business and other provisions concerning the business

(10) the provisions concerning dissolution

(11) the provisions concerning change of the content of the articles of endowment

(12) method  of giving public notice.

When she appoints Officers ( Yakuin = 役員 ) of an Incorporated Educational Institution at the time of its establishment, she needs to appoint it  in the articles of endowment.

When the Competent government agency shall judge whether or not to authorize the articles of endowment, after examining whether or not the assets of the Incorporated Educational Institution that has filed the application satisfy the requirements set forth in Article 25, and whether or not the contents of the articles of endowment comply with the provisions of laws and regulations.

So, I introduce “Article 25 of Private schools act”.

” Incorporated educational institutions must own the facilities and equipment which the Private Schools that it establishes require, or the funds required therefor, as well as the assets necessary for managing the Private Schools that it establishes. ”

So in order to establish a Incorporated educational institutions, it must own enough asset to manage its school.

In the case Incorporated educational institutions purchased facilities ( including building ) by borrowing money from bank, it means that Incorporated educational institutions do not own
asset to manage its school.
Because, if the Incorporated educational institutions fails to repay its loan, the facilities will be seized by bank and status of students ( Seito = 生徒 ) will be unstable.

When the competent government agency authorizes the articles of endowment, said authority must hear the opinion of the Private Schools Council, etc.

A person who intends to establish a Specialized Training Colleges or Miscellaneous School may form quasi Incorporated Educational Institution ( Called “Jun gakko hojin” ) whose purpose is limited to establishing a Specialized Training College or Miscellaneous School.

And the provisions regarding to Incorporated Educational Institution shall apply to the quasi Incorporated Educational Institution.

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