"Haigyo Navi" Releases Business "Liquidation Simulator" -- AI Estimates Liquidation Costs and Duration by Simply Inputting Assets, Liabilities, and Employee Count

Mycat Inc. (Headquarters: Meguro-ku, Tokyo) has released a "Liquidation Simulator" on its business closure support service "Haigyo Navi" (https://haigyo.xyz), which uses AI to estimate the costs and duration of business liquidation. Tool URL: https://haigyo.xyz/tools/liquidation-simulator

"I want to close my business, but I don't know how much it will cost."

According to a survey by Tokyo Shoko Research, the number of corporate bankruptcies in 2025 is projected to exceed 11,000, surpassing the 10,000 mark for the first time in 11 years (Source: Tokyo Shoko Research 2025 Corporate Bankruptcy Situation). While bankruptcy is "the result of a cash flow crunch," many business owners recognize that "it is difficult to continue the business, but they postpone closure because they don't know how to proceed." The "White Paper on Small and Medium Enterprises 2024" by the Small and Medium Enterprise Agency lists "not knowing the necessary costs for closure" and "complicated procedures making it difficult to start" as top challenges for business owners considering closure (Source: Small and Medium Enterprise Agency White Paper on Small and Medium Enterprises 2024). In reality, company dissolution and liquidation involve a wide range of costs, including registration fees, official gazette announcement fees, tax filing fees, remuneration for lawyers and tax accountants, severance pay for employees, and cancellation fees for remaining leases, making it difficult to grasp the total amount in advance.

How the Liquidation Simulator Works

The Liquidation Simulator calculates an estimate of the necessary costs and procedural duration for liquidation by simply inputting basic business information.

Input Items

• Type of legal entity (stock company/limited liability company/sole proprietor)
• Recent sales scale (annual turnover basis)
• Estimated total assets and total liabilities
• Number of employees
• Main types of assets (real estate/vehicles/inventory/accounts receivable/equipment)
• Presence of lease agreements and remaining term
• Presence of borrowings and types of lenders (banks/Japan Finance Corporation/non-banks, etc.)

Simulation Results

Based on the input content, the following items are calculated as estimated values:

• Legal Procedure Costs: Automatically calculates registration license tax for dissolution registration (30,000 yen), registration license tax for completion of liquidation registration (2,000 yen), and official gazette publication fees (approx. 32,000 yen~). These are procedures stipulated by the Companies Act and cannot be omitted for stock company liquidation (Source: Ministry of Justice Commercial Registration Procedures).
• Professional Fees: Displays typical remuneration levels for judicial scriveners (registration procedure agency), tax accountants (final tax return/liquidation final tax return), and lawyers (if creditor response is required). These are merely目安 (guidelines) and may vary depending on individual cases.
• Employee-Related Costs: Calculates severance pay (if severance pay regulations exist in the employment rules), social insurance qualification loss procedures, and administrative costs associated with issuing separation certificates. It also determines the presence of dismissal notice allowance (incurred if not notified 30 days in advance) (Source: Labor Standards Act Article 20).
• Lease/Contract Related: Estimates lump-sum repayment amount for remaining lease balances, restoration costs for offices, and cancellation penalties for various services (telephone, internet, software, etc.).
• Procedural Duration: Displays the overall schedule for liquidation procedures, including the creditor notification period (minimum 2 months, Companies Act Article 499). Typically, it takes a minimum of 3-4 months from the resolution for dissolution to the completion of liquidation, but it can take over a year if creditor responses or real estate dispositions are involved.

Use Case 1: Decision Material for Business Succession or Closure

For SME owners without successors, deciding whether to transfer the business or close it is a major decision. By understanding the total cost of closure with the Liquidation Simulator and comparing it with the transfer price presented by an M&A advisor, they can numerically determine which is more economically rational. According to the Small and Medium Enterprise Agency, approximately 2.45 million SMEs will have owners over 70 years old by 2025, and about half of them have no determined successor (Source: Small and Medium Enterprise Agency Current Status of Business Succession). Early decision-making is crucial as business value decreases over time.

Use Case 2: Selection and Concentration of Multiple Businesses

Companies operating multiple businesses can estimate the liquidation costs per business unit when considering withdrawal from unprofitable businesses. By comparing the costs of withdrawal with the cumulative losses if the deficit continues, it provides material for deciding the timing of withdrawal. Since procedures and costs differ for business transfer and company split, the simulator calculates estimates for business transfer cases in addition to liquidation per legal entity.

Use Case 3: Overall Understanding of Sole Proprietor Closure Procedures

When a sole proprietor closes their business, the procedures are simpler than for a corporation, but there are often overlooked items such as the application of special deductions for blue tax returns, disposal of business assets, and filing of consumption tax abolition notifications. The simulator also supports sole proprietor closures, displaying a list of necessary notification documents and deadlines. Business closure notifications are submitted to three different locations: the tax office, prefectural tax office, and municipal office (Source: National Tax Agency Procedures for Opening/Closing a Sole Proprietorship, etc.), and failure to notify can lead to tax risks.

Important Notes

This simulator provides estimates of liquidation costs and duration and is not legal advice. Actual liquidation procedures should be carried out with the support of specialists such as lawyers, tax accountants, and judicial scriveners. In cases of insolvency, special liquidation or bankruptcy procedures may be required instead of ordinary liquidation.

In the future, we will add functions that comprehensively support the "end of a business," such as linkage with M&A brokerage services and personal life plan simulation functions for business owners after closure.

▼ Details of this matterhttps://haigyo.xyz/tools/liquidation-simulator

■ Company Overview
Company Name: Mycat Inc.
Established: February 5, 2025
Location: 2-7-22 Mita, Meguro-ku, Tokyo
Business Activities: Planning, development, and operation of AI-powered services for SMEs and individuals
Latest News: https://haigyo.xyz/news
Corporate Site: https://mycat.business
Contact: info@mycat.business