Incorporation of Japan Companies

General information:

Japan has great potential to become a regional hub center in Asia, as exchanges of personnel, goods and money accelerate within Asia. Currently, the world's eyes are on Asia. Japan is full of business opportunities due to its strong ties with this rapidly developing region.

In Asia, Japan is recognized as a leading center for innovation and boasts highly attractive business and living environments, in terms of safety, medical services, etc. Japan is one of the world's largest economies, is also attracting increased global attention for its "soft power".


Different types of company in Japan:

There are currently 2 different types of limited company in Japan :

1. Kabushiki Kaisha - is run by shareholders with limited liability and by directors who are appointed by shareholders. This is the most well known, prevailing form of incorporation in Japan, used by most major companies.

2. Godo Kaisha - works in a similar way to what is known as LLC (limited liability company) in Western countries and has one or more partners with limited liability.


Difference of Kabushiki Kaisha (KK) and Godo Kaisha (GK / LLC):


Kabushiki Kaisha (KK)

Godo Kaisha (GK)


This is widely known, the most credible form of company inJapan.

Introduced in 2006, it is still not very well known by many people and some might think that it's not as credible as Kabushiki Kaisha.


Who invest (shareholders) and those who run the company (directors) are separated, although it is possible for a shareholder to become a director at the same time.

It consists of partners who invest and run the company at the same time. Different from Kabushiki Kaisha., it is necessary to invest (no matter how small the amount may be) in order to run the company.

Minimum number of people required

A shareholder and a Representative Director (can be the same person). The Representative Director needs to be a resident in Japan.

One partner who needs to be a resident in Japan

Publication of financial statements


Not necessary

Directors term of office

1 to 10 years with possibility of re-election (which needs to be registered)

No fixed term

Advantages of Japan Companies :

1. Free trade zones including Nagasaki, Niigata, Okinawa, and Tokyo offering companies no custom duties, and flexible labour laws.

2. Massive consumer demand.

3. Business opportunities for multinational services firm.

4. No restriction on the repatriation of capital.

5. Minimizing withholding tax for Japan LLC.

6. For registration of an LLC, only one director and one shareholder is required. The minimum share capital is US$1.

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