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Regular paperworks to operate NPO

Paperwork must go on unless you run NPO. Sorry.

A yearly task for NPO is to file the documents below to the supervising authority within the first 3 months of the fiscal year.
・The yearly action and budget plan
・The annual activity report
・The financial statement
・The balance sheet
・The inventory of assets
・The list of directors and auditor(s)
・The list of members (at least 10)

You will have occasional tasks when you change or would like to change the essential items of NPO.
If you would like to modify a critical part of the article of incorporation such as the mission, name, and activity area, it will not be effective until obtaining permission from the authority.
First, you have to held the general meeting of members to determine the modification, then apply for the authority with the minute of the meeting, the comparative table of the article of incorporation and the new article of incorporation.

If you would like to modify a less critical part of the article of incorporation such as office address change in the same jurisdiction, a number of directors, etc, the modification will be effective immediately when it is determined in the general meeting of members and you only need to report to the authority.

You also have a reporting task every 2 years.
Since the term of director and auditor have to be shorter than 2 years, you need to hold an election of directors and auditor(s) at least once every 2 years.
It is legally defined by NPO law so you cannot skip it.
After you hold the election, you have to file the report the authority even all the same directors and auditor(s) are re-elected. 

When you changed registered items such as office address, mission and directors, you have to apply for the change the registration to the Bureau of Legal Affairs as well.
Please note that even all the same directors are re-elected and no item is the same, you have to apply for the change after the election.

You may interested in if you skip all those annoying procedures above, what will happen.
In the NPO law, the director will be subject to a civil fine of less than 200,000 yen and may have a dissolution order from the authority.
So please be careful and keep up.


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