Japan overhauls laws governing non-profits

Japan has reformed its outdated public benefit corporation (PBC) rules, in force since the late 19th century. The reforms usher in a new legal framework for ‘general not-for-profit corporations’, to include the present general public benefit corporations (koeki hojin) as well as mutual benefit organizations (chukan hojin).  The new legislation will be incorporated in the Civil Code and will apply to all organizations that seek to become legal entities irrespective of whether they wish to apply for recognition of ‘public benefit status’.