Ministry of Internal Affairs and Communications Statistics Bureau
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Explanation of Terms

1. Establishment

An establishment is defined as a single physical location where an economic activity is conducted and, in principle, the following prerequisites are satisfied:

a) An economic activity is carried out under a single management entity, at a certain fixed place, occupying a demarcated area.

b) The production or supply of goods and services is done on a continuing basis with the help of persons engaged and equipment.

Establishment with dispatched or subcontracted employees only

An establishment with dispatched or subcontracted employees from organizations, but without any persons engaged by the establishment itself.

2. Change in Establishments

Existing establishments

Represents establishments which had survived at the same location since the date of the 2001Census.

New establishments

Represents establishments which were newly set up or had moved into the present location since the day after the date of the 2001 Census (October 1, 2001).

Closed establishments

Represents establishments which had moved to a different location or had closed after the date of the 2001 Census.

3. Legal Organizations

Privately owned

An establishment which is not owned by the national or local governments.

Individual proprietorship

An establishment which is managed by an individual on his/her own. It includes establishments which are not incorporated and under the joint management of individuals.

Corporation

An establishment which is incorporated under the law.

Company

An incorporated establishment which is a stock company (including a limited company), a limited or unlimited partnership company, a limited liability company, a mutual insurance company, or a foreign company.

A foreign company is a branch office or a smaller representative of a company which is founded in a foreign country, and which is registered according to the prescription of the Companies Act.

Incorporated Administrative Agency, etc.

Incorporated administrative agency, local incorporated administrative agency, national university corporation, inter-university research institutions and Japan Post are included under incorporated administrative agency.

Other Corporation

An incorporated establishment which is not a company.

Foundation, incorporated association, educational/religious/medical corporation, government-affiliated corporation, cooperative corporation and credit association are included in this category.

Organization other than corporation

Represents an organization which is not legally incorporated.

Conferences, supporter? associations, alumni associations and trade unions are examples.

4. Industrial Classification of Establishment

The industrial classification of an establishment is determined, by the nature of the main business activities of the establishment (as a general rule, based on the largest share of the income or the sales over the past year), according to the Japan Standard Industrial Classification (Notification No. 139 of the Ministry of Internal Affairs and Communications issued on March 7, 2002).

Subdivided groups under some minor industrial groups are also regarded as minor groups.

5. Persons Engaged

Persons engaged include all persons who are engaged in the business of the establishment as of the date of the Census, excluding persons who do not receive payment from the establishment. Dispatched or subcontracted employees to separately operated establishments are included in this category, but those from separately operated establishments are excluded.

Family workers in the establishment of the individual proprietorship are included in this category, even if they were not paid wages or salaries.

Individual proprietors

Refers to proprietors of establishments who own and manage the business on their own account, and are not nominal owners.

Family workers working without pay

Refers to family members of individual proprietors without wages or salaries.

Family members who are working and getting as much income as employees are treated as "regular employees" or "temporary workers."

Paid directors

Refers to paid managers or directors of corporations or associations irrespective of the fact whether they are full-time or part-time workers. Managers or Directors who are currently working as regular employees and receive payment on the same payroll as regular employees are classified as "regular employees."

Regular employees

Refers to employees employed regularly by establishments.

Persons employed without fixed term, persons employed for a period of more than one month, and persons employed for 18 days or more in each of the past two months before the date of the Census are included in this category.

Full-time employees

Refers to regular employees who are commonly called" full-time workers."

Those other than full-time employees

Refers to regular employees who are commonly called "part-timers", and are not commonly called "full-time workers."

Non-regular workers

Refers to those other than regular employees who are employed for a period of a month or less or on a daily basis.

Dispatched or subcontracted employees from separately operated establishments

Refers to those who are dispatched to work at the establishment concerned, or come to the establishment concerned from separately operated establishments for subcontracted work.

6. Head or Branch Office

Single-unit establishment

Refers to a single establishment without other establishments under the same management.

Head establishment (head office/store)

Represents an establishment supervising all other establishments under the same management. In general, it is called a head-office.

Branch establishment (branch office/store)

Represents an establishment under the supervision of the head-office, or another branch-office under the same management.

Business offices, Sales offices, factories, warehouses staffed by persons engaged, and dormitories supervised by a caretaker are also included in this category.

7. Startup date

"Startup date" is the year when the establishment began its current economic activities at its present place.

8. Incorporated enterprise

An incorporated enterprise is composed of a head establishment and branch establishments managed by a stock company (including a limited company), a limited or unlimited liability partnership, or a mutual insurance company. A single-unit establishment is an incorporated enterprise in its own right.

"Enterprise" in this document refers to this category.

9. Industrial Classification of Enterprises

The industrial classification of an enterprise is determined by the nature of the main business activities of the company as a whole, including branch establishments (based on the largest share of the total income or the total sales of the whole enterprise over the past year).

The industrial classification of enterprises is the same as the one used for the classification of establishments.

10. Capital

Capital is defined as registered capital for stock companies (including limited companies), investment for limited or unlimited liability partnerships, and registered funds for mutual insurance companies.

11. Parent Company, Subsidiary, Affiliated Company

Parent company

A company which owns majority voting rights of the company concerned.

However, even with voting rights under 50 percent, as long as consolidated financial statements are created with the company concerned defined as a subsidiary, the company immediately above the company concerned in consolidated financial statements is regarded as a parent company.

Subsidiary

A company whose voting rights exceeding 50 percent are owned by the company concerned.

A company whose voting rights exceeding 50 percent are owned by a subsidiary of the company concerned is also included in this category.

A company whose voting rights exceeding 50 percent are owned by both the company concerned and a subsidiary is also included in this category.

Affiliated company (owning voting rights)

A company which directly owns the voting rights of the company concerned with more than 20 and less than 50 percent.

Affiliated company (voting rights owned)

A company whose voting rights are directly owned by the company concerned with more than 20 and less than 50 percent.

12. Date of establishment

The year and month of legal opening of a company according to the certified copy of commercial (incorporation) registration.

13. Separation and Merger

New consolidation

The case when two or more companies dissolved and consolidated, and were newly established as a company.

Absorption by merger

The case when one company continued to exist, and the other company dissolved and was absorbed by the existing company.

Split, separation

The case when part of a company was split off or separated, and was established as a new company.

Relocation

The case where the establishment concerned was relocated at the present place from another place.

Change of formal name

The case where the formal (registered) name of a company was changed.

14. Electronic Commerce

Electronic commerce is business conducted using the Internet or other computer networks.

However, payments or business conducted among the departments of the same company is not included in the term "electronic commerce" here.

15. Details of Electronic Commerce

Acceptance of order

Receiving orders for goods, services, shipment (transmission), production, etc.

Placement of order

Placing orders for goods, services, shipment (transmission), production, etc.

Delivery or arrangement

Arranging supply of services concerning music, images, E-mail magazines or shipment of goods.

After -sales services, etc.

Electronic commerce, including after-sales services, which is not relevant to the above mentioned "order intake," "placing of order" or "shipment and arrangement."

16. Regional divisions

(1) Three major areas

a) Metropolitan area: The area based on the National Capital Region Development Act: Tokyo-to, Saitama-ken, Chiba-ken, Kanagawa-ken, Ibaraki-ken, Tochigi-ken, Gunma-ken and Yamanashi-ken.

b) Chubu: The area based on the Chubu Region Development Act: Toyama-ken, Ishikawa-ken, Fukui-ken (overlaps with Kinki area), Nagano-ken, Gifu-ken, Shizuoka-ken, Aichi-ken, Mie-ken (overlaps with Kinki area) and Shiga-ken (overlaps with Kinki area).

c) Kinki: The area based on the Kinki Region Development Act: Fukui-ken (overlaps with Chubu area), Mie-ken (overlaps with Chubu area), Shiga -ken (overlaps with Chubu area), Kyoto-fu, Osaka-fu, Hyogo-ken, Nara-ken and Wakayama-ken.

(2) Districts

a) Hokkaido: Hokkaido

b) Tohoku: Aomori-ken, Iwate-ken, Miyagi-ken, Akita-ken, Yamagata-ken, Fukushima-ken and Niigata-ken

c) Kanto: Ibaraki-ken, Tochigi-ken, Gunma-ken, Saitama-ken, Chiba-ken, Tokyo-to, Kanagawa-ken and Yamanashi-ken

d) Hokuriku: Toyama-ken, Ishikawa-ken and Fukui-ken

e) Tokai: Nagano-ken, Gifu-ken, Shizuoka-ken, Aichi-ken and Mie-ken

f) Kinki: Shiga-ken, Kyoto-fu, Osaka-fu, Hyogo-ken, Nara-ken and Wakayama-ken

g) Chugoku: Tottori-ken, Shimane-ken, Okayama-ken, Hiroshima-ken and Yamaguchi-ken

h) Shikoku: Tokushima-ken, Kagawa-ken, Ehime-ken and Kochi-ken

i) Kyushu: Fukuoka-ken, Saga-ken, Nagasaki-ken, Kumamoto-ken, Oita-ken, Miyazaki-ken and Kagoshima-ken

j) Okinawa: Okinawa-ken

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