The Best Company Type in Japan Business

You have to decide your company type stipulated by Japan’s Companies Act below.

  • Stock corporation (Kabushiki-Kaisha (K.K.))
  • Limited liability company (Godo-Kaisha (G.K.))
  • Unlimited partnerships (Gomei-Kaisha)
  • Limited partnerships (Goshi-Kaisha)

Gomei-Kaisha and Goshi-Kaisha are rarely established in practice because even limited partners also have direct liability although these two types companies have legal entities.

K.K. is the most popular company for business in Japan. You would be able to acquire good enough credit from transaction parties. On the other hand, G.K. is used for a super micro business, or for a just vehicle for tax saving.

All types of subsidiary companies can be incorporated by completing the required procedures stipulated by law and then by registering the corporation with the Legal Affairs Bureau. After incorporation, you have to file some application documents to the tax office and the local tax office, where your head office locates. Especially you have to file the Application for Blue Form Return in order to get some tax benefit within 2 months.