Distribution of profits tied to the number of shares held

[sumonasumonakha.t]

Types of Business in Japan

Different types of business in Japan
Types of business in Japan
If you are considering starting a business in Japan, it is worth acquainting yourself with the types of company that it is possible to establish.

The diversity of the company types in the country reflects Japan’s dynamic and exciting business landscape. There are four options to consider including company types suitable for small businesses and larger corporations.


Kabushiki Kaisha (KK)
Kabushiki Kaisha

The most widely known and credible type of company in Japan, a KK is a joint-stock, limited liability company. A KK is usually the most suitable option for medium to large businesses. It can be registered with a capital investment of 1 yen and with only one investor that is both a shareholder and director. A Japanese address is required but shareholders and directors can all be non-residents.


Requires at least one company director and one shareholder. These can be the same person.

Directors are appointed for one to ten years and can be re-elected or appointed for a fixed term of 2 years.

All investors have limited liability.

Financial statements must be published.

Must have an accounting counsellor or appoint auditors.

Foundation process is based on the Articles of Association which must be registered with the Legal Affairs Bureau.



A KK is costly to incorporate.

This type of company can be listed.

Wide range of financing options available.

Enables you to raise funds via stock options and selling shares.

It can be easier to attract Japanese employees to this type of guatemala mobile database business.


Kabushiki Gaisha or Godo Kaisha

A KK company is the right choice if you have sufficient funds and will be trading regularly with Japanese businesses. It is also the best option if you wish to bring in further investors and to sell or transfer shares in the future. You should consider establishing a KK if you wish to distribute profits (dividends) in a way other than according to the percentage of shares owned. For instance, you might wish to reward individuals for their skills and performance rather than for having made an investment in the company.