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There are many corporate entities available to investors who wish to incorporate a company in Japan, and there are many obvious benefits of doing so. For example, the Japan External Trade Organisation (JETRO) has reported that up to 85% of foreign investors who incorporate a company in Japan experience ‘fair to booming’ business. More than half of those who incorporate a company in Japan find that they are expanding. |
Furthermore, in 2006 Japan company law was relaxed, making it more appealing to incorporate a company in Japan. The following is an overview of the different corporate structures available to those who incorporate a company in Japan: |
Kabushiki Kaisha (KK) |
A KK is a popular corporate structure among foreign investors who incorporate a company in Japan because it requires only one director and has a very small paid-up capital requirement of 1 Yen. However, the company is required to raise 10 million yen (US$ 109,600) in capital within five years to stay registered as a KK. Any key decision must be made by the Director or Board of Directors because of the strong statutory requirements for corporate governance. |
Godo Kaisha (GK) |
A Godo Kaisha (GK) is similar to a Limited Liability Company (LLC). To incorporate a company in Japan via a GK is more expensive than a KK. In addition, although minimum capital is required to be only 1 Yen upon incorporation, it is required to increase its capital to 3 million Yen (US$32,900) five years after incorporation. However, it is a more simple corporate structure than a KK. |
Branch Office |
Foreign organisations who incorporate a company in Japan to conduct trade do so through a Japan branch office. To incorporate a company in Japan using this structure, it needs to have a Japan-resident representative and a registered office address, as well as approval from the Japanese Ministry of Justice. Those who incorporate a company in Japan using this structure should budget to spend up to US$13,000 on incorporation, depending on corporate structure and range of professional services required. |
Representative Office |
A representative office can be a useful and easy way to establish a presence in Japan. However, a representative office is restricted in its activities. It can be valuable in i) storage of assets ii) purchase of assets and iii) auxiliary assets such as advertising, information gathering and market research. A representative office in Japan is restricted from making sales, but it can supply information and prices to customers. |
| Contact Us |
| To incorporate a company in Japan, email email@healyconsultants.com or telephone us at (+65) 6735 0120. |
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