Japan Real Estate Business Corporation Sale (3 inns + 7 homestays)

Suggested Enterprise Value$1,000,000

Selling Background

Due to the need for cash for another project.

Business Model

  • We operate 10 properties (all sub-leased) in the 23 wards of Tokyo under the Ryokan business and the new law for private accommodations.
  • All are within a 5-minute walk from the nearest train station and have good accessibility. Most of the properties have already been in operation for more than a year, and stable operation can be expected in the future.

Financial Statement

transferable objectcompany
fiscal yearOctober 2024
Net sales25-50 million yen
Operating income0 to 5 million yen
Total amount of remuneration for directors and corporate auditorsnon-public
Depreciation and amortizationnon-public
Cash and Deposits0 to 5 million yen
Interest-bearing debt0 to 5 million yen
total assets25-50 million yen
net assets0 to 5 million yen

Transfer of shares in sales and lease of highly controlled medical equipment, etc.

Suggested Enterprise Value$192,000

Selling Background

In order to review our strategy. This company acquired a license to sell and rent high-level medical devices, and we were selling AEDs, but as our main business has shifted to sales consulting, we are thinking of selling the current company and creating a separate corporation.

Business Model

  • This company sells AEDs in Tokyo. We have acquired a license to sell and rent advanced medical devices.
  • Apart from the above, the company’s representative also provides sales consulting services, and the majority of the company’s sales are made up of consulting fees.
  • The company purchases and sells foreign-made AEDs, and as it basically only purchases after receiving orders, it is able to operate without holding any stock and without any debt.
  • As it has a certain number of regular customers, it is expected that AED sales will continue in the future.
  • The main customers for AED sales are individuals and clinics.

Financial Statement

Financial YearFY 2023
Sales$32,000
Net income$6,000
Net Asset$32,000
Full time employeeFull-time employee

What is the main component of the cosmetic

  1. Solvents: These are liquids used to dissolve other ingredients and help mix them together. Water is the most common solvent in cosmetics.
  2. Surfactants: These ingredients help to mix water and oil, allowing for the creation of emulsions. They also have cleansing properties.
  3. Active Ingredients: These are the components that provide the primary benefits of the product, such as moisturizers, antioxidants, and vitamins.

Additionally, cosmetics often contain preservatives to extend shelf life, thickeners to improve texture, and dyes or pigments for color

SASAL, INC’s Dividend Case

If your corp has the capital, you could get dividends from the corporation. SASAL, INC shares the case of our 100% capital share subsidiary.

Dividend

Steps to Decide the Dividend

  1. Evaluate Financial Performance: The company assesses its financial performance, including net income, cash flow, and overall profitability. This evaluation helps determine how much profit is available for distribution.
  2. Set Dividend Policy: The company establishes a dividend policy, which outlines the percentage of earnings to be distributed as dividends. This is known as the dividend payout ratio.
  3. Board of Directors’ Proposal: The board of directors reviews the financial performance and dividend policy, then proposes a specific dividend amount. This proposal considers future investment needs and financial stability.
  4. Shareholder Approval: The proposed dividend is presented to shareholders at the annual general meeting (AGM) for approval. Shareholders vote on the proposal, and if approved, the dividend is declared.
  5. Dividend Payment: Once approved, the dividend is paid to shareholders on the designated payment date. Shareholders must own the stock by the ex-dividend date to be eligible for the dividend.

Dividend Calculation

The dividend per share (DPS) can be calculated using the following formula: $ \text{DPS} = \frac{\text{Total Dividends Paid}}{\text{Number of Outstanding Shares}} $

For example, if a company decides to pay a total of \$10 million in dividends and has 5 million outstanding shares, the DPS would be: $ \text{DPS} = \frac{10,000,000}{5,000,000} = \$2 \text{ per share} $

Types of Dividends

  • Cash Dividends: The most common type, paid in cash to shareholders.
  • Stock Dividends: Additional shares of the company’s stock are distributed instead of cash.
  • Property Dividends: Non-cash assets, such as products or property, are distributed to shareholders.

Factors Influencing Dividend Decisions

  • Profitability: Higher profits typically allow for higher dividends.
  • Cash Flow: Adequate cash flow is necessary to support dividend payments.
  • Growth Opportunities: Companies may retain earnings for reinvestment in growth opportunities.
  • Debt Levels: High debt levels may limit the ability to pay dividends.
  • Market Conditions: Economic and market conditions can influence dividend decisions.

Dividend Payout Ratio

Steps to Decide the Dividend Payout Ratio

  1. Evaluate Financial Performance: Assess the company’s net income, cash flow, and overall profitability. This helps determine how much profit is available for distribution.
  2. Set Dividend Policy: Establish a dividend policy that outlines the percentage of earnings to be distributed as dividends. This is known as the dividend payout ratio.
  3. Consider Growth Opportunities: Evaluate future investment needs and growth opportunities. Companies may retain earnings for reinvestment in growth projects.
  4. Review Debt Levels: Consider the company’s debt levels. High debt may limit the ability to pay dividends.
  5. Analyze Market Conditions: Take into account economic and market conditions, which can influence dividend decisions.

Dividend Payout Ratio Calculation

The dividend payout ratio can be calculated using the following formula: $ \text{Dividend Payout Ratio} = \frac{\text{Dividends Paid}}{\text{Net Income}} \times 100 $

For example, if a company pays \$2 million in dividends and has a net income of \$10 million, the dividend payout ratio would be: $ \text{Dividend Payout Ratio} = \frac{2,000,000}{10,000,000} \times 100 = 20\% $

Factors Influencing the Dividend Payout Ratio

  • Profitability: Higher profits typically allow for a higher payout ratio.
  • Cash Flow: Adequate cash flow is necessary to support dividend payments.
  • Growth Opportunities: Companies with significant growth opportunities may retain more earnings.
  • Debt Levels: Companies with high debt may opt for a lower payout ratio to manage financial stability.
  • Market Conditions: Economic and market conditions can impact the decision on the payout ratio.

Industry Standards

Dividend payout ratios can vary by industry. For example, utility companies often have higher payout ratios due to stable cash flows, while tech companies may have lower ratios as they reinvest earnings into growth[1].

[1]: Investopedia

References

[1] Dividend Payout Ratio Definition, Formula, and Calculation – Investopedia

Wholly owned subsidiaries

The tax treatment of dividends from wholly owned subsidiaries can vary depending on the jurisdiction, but here are some general principles:

Tax Treatment Overview

  1. Dividends Received Deduction (DRD): In many jurisdictions, parent companies can benefit from a dividends received deduction, which allows them to exclude a portion or all of the dividends received from their taxable income. This is designed to avoid double taxation of the same income[1].
  2. Tax Deferral: In some cases, dividends from foreign subsidiaries may be eligible for tax deferral until the profits are repatriated to the parent company[2].
  3. No Withholding Tax: Often, dividends paid from a wholly owned subsidiary to its parent company are not subject to withholding tax, especially if both entities are within the same country[1].

Specific Considerations

  • U.S. Tax Code: Under U.S. tax law, dividends received by a parent company from its wholly owned subsidiary can generally be excluded from taxable income if certain conditions are met. This is part of the dividends received deduction (DRD) provision[1].
  • International Tax Treaties: Many countries have tax treaties that provide favorable tax treatment for intercompany dividends, reducing or eliminating withholding taxes[2].

Example

For instance, if a U.S. parent company receives dividends from its wholly owned U.S. subsidiary, it can typically exclude 100% of those dividends from its taxable income under the DRD provision[1].

[1]: IRS – Dividends Received Deduction [2]: ICAEW – Dividend from a subsidiary

References

[1] Intragroup transfers of U.S. subsidiaries triggering withholdable dividends

[2] E. FOR-PROFIT SUBSIDIARIES OF TAX-EXEMPT ORGANIZATIONS

What is prop trading and the merit.

Proprietary trading, often referred to as “prop trading,” involves financial institutions or commercial banks using their own capital to trade financial instruments like stocks, bonds, commodities, or currencies for direct market gain, rather than earning commissions by trading on behalf of clients[1].

Key Points About Prop Trading:

  1. How It Works: Prop trading desks at financial institutions use the firm’s capital and balance sheet to conduct speculative trades. These trades can involve a variety of strategies, including arbitrage, fundamental analysis, and technical analysis[1].
  2. Benefits:
    • Higher Profits: Institutions can realize 100% of the gains from their investments, unlike client trading which earns only commissions[1].
    • Inventory Stockpiling: Firms can build an inventory of securities, providing an advantage in illiquid markets[1].
    • Market Making: Prop trading allows institutions to provide liquidity and become influential market makers[1].
  3. Risks: While prop trading can be highly profitable, it also involves significant risk due to the speculative nature of the trades[1].

Choosing a Prop Trading Firm:

If you’re considering joining a prop trading firm, it’s important to evaluate factors like funding speed, evaluation processes, profit sharing, and trading rules. Some of the top prop trading firms in 2025 include Apex Trader Funding, MyFundedFutures, and Trade the Pool[2].

Would you like more details on any specific aspect of prop trading or information about a particular firm?

References

[1] Proprietary Trading: What It Is, How It Works, Benefits – Investopedia

[2] 7 Best Prop Trading Firms in 2025 (That Actually Pay) – Benzinga

How to start real estate business with small budget.

Trank room

To operate a storage room service in New York, you generally do not need a specific license if you are running a self-storage business. However, if you plan to store consumers’ household goods for a fee (like a traditional storage warehouse), you will need a Storage Warehouse License from the New York City Department of Consumer and Worker Protection (DCWP)[1][2].

Here are the key requirements for obtaining a Storage Warehouse License:

  1. Basic License Application: Complete the application form provided by the DCWP.
  2. Sales Tax Identification Number: Obtain this from the New York State Department of Taxation and Finance.
  3. Rate Schedule: Submit a schedule of all charges for storage and handling on your business letterhead.
  4. Surety Bond: Provide a $10,000 surety bond naming the City of New York as the certificate holder.
  5. Liability Insurance: Obtain insurance to cover consumer property.
  6. Business Certificate: Depending on your business structure, you may need to provide a Business/Assumed Name Certificate, Partnership Certificate, or registration with the New York State Division of Corporations.

For more detailed information, you can visit the NYC Business website[2].

References

[1] DCWP – Storage Warehouse (Premises) License Application Checklist – NYC.gov

[2] Storage Warehouse License | City of New York