Japan Godo Kaisha (LLC)

A Godo Kaisha is the most popular type of Japanese company for foreign investors because it is easier to operate than other entities. For example, there is no requirement for shareholders meetings after incorporation. A Godo Kaisha is an excellent way for entrepreneurs to legally conduct business in Japan, including signing contracts in Japan, retailing goods in the country, importing raw materials and exporting finished products. The following information will help you make an informed decision on whether a Godo Kaisha is the optimum corporate solution to meet your business objectives.
Advantages of a Godo Kaisha
1.	There are few restrictions on the activities of a Godo Kaisha. In addition, a Godo Kaisha can hire staff of any nationality.
2.	A minimum of one director and one shareholder is required for a Godo Kaisha. Although a resident director or shareholder is not required, a resident company representative is required. Healy Consultants will provide nominee resident representatives for our Clients. Corporate shareholders and directors are permitted and 100% foreign ownership is permitted.
3.	A Godo Kaisha has a minimum share capital requirement of 1 Yen. However, it is required to increase its capital to Yen10 million (US$107,500) five years after incorporation.
Disadvantages of a Godo Kaisha
1.	A Godo Kaisha is required to submit an annual tax return to the Japanese government.
2.	AGodo Kaisha is liable for corporate tax of 22% on income up to 8 million yen (provided total equity is under 100 million yen), and 30% on income over 8 million yen. In addition, companies are subject to pay local and corporate inhabitant taxes so effective tax rates can reach up to 44%.
3.	A Godo Kaisha is required to rent office space in Japan, and submit a tenancy agreement prior to incorporation.
4.	Legally incorporating a Godo Kaisha may take at least one month.
5.	Following the incorporation of a Godo Kaisha, it can take up to three months to obtain a work permit approval for foreign staff.
Healy Consultants fees for a Godo Kaisha
International entrepreneurs should budget for Godo Kaisha set up fees of approximately US$34,670, depending on corporate structure and range of professional services required.
Contact Us
For further information on a Godo Kaisha, please email email@healyconsultants.com or telephone us in Tokyo at +81 345 801 776.
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