Japan Company Types

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Introduction

If you’re interested in starting a business in Japan, it’s important to understand the different Japan company types available. In this blog post, we’ll discuss the three main types of companies in Japan and their respective characteristics.

Kabushiki Kaisha (KK)

Kabushiki Kaisha, also known as a joint-stock corporation, is the most common type of company in Japan. KKs are generally large and publicly traded, with shares available for purchase on the stock market. A KK must have at least one shareholder and a minimum capital of JPY 1 million (approximately USD 9,000) to be established. KKs are managed by a board of directors and must hold annual shareholders’ meetings to elect directors and approve financial statements.

Godo Kaisha (GK)

Godo Kaisha, also known as a limited liability company, is a popular type of company for small and medium-sized businesses in Japan. GKs have a flexible corporate structure and are managed by members rather than a board of directors. A GK must have at least one member and a minimum capital of JPY 1 (approximately USD 0.01) to be established. GKs are not publicly traded and are not required to hold annual shareholders’ meetings.

Yugen Kaisha (YK)

Yugen Kaisha, also known as a closely-held corporation, is a type of company that is similar to a KK but has a more restricted ownership structure. A YK must have at least two shareholders, and the shareholders must be individuals or other YKs. YKs are managed by a board of directors and are required to hold annual shareholders’ meetings. YKs are not publicly traded, and ownership is limited to a maximum of 50 shareholders.

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Summary

Choosing the right type of company structure is an important decision when starting a business in Japan. Kabushiki Kaisha (KK) is the most common type of company and is suitable for larger businesses that want to raise capital through the stock market. Godo Kaisha (GK) is a popular choice for small and medium-sized businesses that want a flexible corporate structure. Yugen Kaisha (YK) is similar to a KK but has a more restricted ownership structure. It’s important to consider the characteristics of each type of company and choose the one that best suits your business needs. It’s also advisable to seek professional advice from a lawyer or accountant before making a decision.

This article does not constitute legal advice.

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