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Covenient form for your business in Japan

Current Japanese Corporate Law went into effect in 2006, and we can establish 4 major forms of entity.

4 major forms are called as #1“Kabushiki Gaisya-KK (Co. Ltd.)”, #2“Gomei Gaisya-GMG (General Partnership Company)”, #3“Gosi Gaisha-GSG(Similar to Joint-Stock Company in US)”, and & #4 “Godo Gaisya-GDG (Similar to genuine LLP)” .  GMG, GSG, and GDG are collectively called as “Mochibun Gaisya (持分会社, membership company)”.

[Distinguishing characteristics]

#1 KK (Co., Ltd.)

Investors (shareholders) are only obligated to make equity investments and do not have any obligation to corporate creditors. KK is the most popular form for doing business without specific restriction in Japan. 

Mochibun Gaisya (GMG, GSG, and GDG) are divided into the following three types depending on the investors’ liability to entity.

#2 “Gomei Gaisya-GMG (General Partnership Company)”-A company that all employees are unlimited liability employees.

#3 “Gosi Gaisha-GSG(Similar to Joint-Stock Company in US)”-A company consisting of unlimited liability employees and limited liability employees.

#4 “Godo Gaisya-GDG (Similar to genuine LLP)”-A newly introduced system under the Companies Act. It was newly born by the Corporate Law as an organization that combines the safety of physical entities whose responsibilities are limited within the scope of investment and the high degree of freedom of internal discipline recognized in human companies. In the case that you prefer to establish LLP not Corporation, we can say that “4 “Godo Gaisya” will be the best from the point of operating flexibility.

Please contact us if you plan to start business in Japan.