In May 1920, the Inokuty Type Machinery Office which was under individual management by Issey was reborn as EBARA Corporation with a capital of 3 million yen. Together with its establishment as a stock company, a new plant was built near Minamishinagawa-juku, Shinagawa-machi, Ebara-gun, Tokyo, near the current Osaki Station on the JR Yamanote Line. With a site area of 8,000 tsubo (26,446 m2) and a plant floor area of 350 tsubo (1,157 m2), it was the first modern specialized pump plant in Japan with state-of-the-art (at the time) mechanical equipment. At the first general meeting of shareholders held when the company was established, Dr. Inokuty was appointed as Advisor and Issey as Senior Managing Director. It was not necessary for the selection of Advisor to be taken to the general meeting of shareholders, but it was decided to do so since Issay considered that Dr. Inokuty’s appointment as Advisor was of great importance.

In order to establish a stock company and a modern plant, Issey believed it was necessary to observe the situations overseas, so he visited America, the United Kingdom, France, Switzerland, and Germany during the year before establishment. One result of the knowledge he gained during his travels was the name of the company. In order to expand its range of products beyond Dr. Inokuty’s inventions, the company took its name from Ebara-gun, the location of its new plant, and made a new start as EBARA Corporation.