Japan paving way for unstamped company contracts

Japanese businesses may no longer have to “sign” contracts or certificates with their company stamp.

The Ministry of Internal Affairs and Communications plans to introduce a system that would let businesses issue contracts and certificates under the president’s name online.

Currently, businesses need to create these documents in paper form and then ink them with their corporate stamp. The stamp is usually applied by an assistant to the president.

In Japan, contracts usually take force once all parties involved stamp them with what is called an inkan. This is done in lieu of signing contracts, as is done in the West.

Under the new system, the assistant, instead of borrowing the president’s inkan, would register his or her personal My Number code along with the document. This would be to show that he or she has been authorized by the president to issue the electronic deed.

Japan’s My Number tax and social security identification system began last year.

The president would be required to upload the electronic document to a designated server, granting power of attorney and its scope to the person issuing the document.

This way, the counterparty to a contract would, for example, be able to check that the issuing person has been legitimately authorized by the president by going online and noting the electronic power of attorney.

To make way for this new system, the ministry wants certain laws amended during the ordinary Diet session that convenes on Friday.


Original article: http://asia.nikkei.com/Politics-Economy/Policy-Politics/Japan-paving-way-for-unstamped-company-contracts

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