In launching a new business or service, it is important to ensure that the business or service does not violate the law before developing the service. At the start-up stage, there are cases in which the legitimacy of the business model itself is questionable, and the company's creditworthiness deteriorated due to the subsequent suspension of services and administrative penalties. There is one common scenario whereby company start its business, unaware of its legal standing , and as the business expand, users and government agencies took notice of such business, it is then discovered that the business is illegal. As a result, it is not uncommon for businesses to change or discontinue. However, even in such scenario there are regulations that would allow the business to be legally carried out by merely submitting a notification to an administrative agency.
At GVA, we have strong experiences in determining the legality of af new business models, as we has provided such service to hundreds of start-up companies in Japan. Utilizing this know-how, our lawyers able to quickly provide “legitimacy judgments” based on the key points of the business model and the mechanism of monetization.