Incorporation in Japan

incorporation

外資系の会社が日本に法人を作る時によく聞かれる質問。

What is the difference between a Godo Kaisha(GK) and a Kabushiki Kaisha(KK)? Which would be a better choice for our purposes?

The answer to your question will depend on your priorities.
There are 3 points when you consider the type of legal entity.

a. Recognizability
Kabushiki Kaisha (KK) tends to have a bit more value in terms of recognizability compared to a Godo Kaisha (GK).

KK is the most popular form of company in Japan, and everyone knows this company form. It is the form of company that has the highest degree of trust from a social and business perspective. The GK form is much lesser known as this form of company has only been permitted since 2006.

b.Cost
On the other hand, the costs concerned with formation of a KK are higher than for the formation of a GK.

c.Legal Structure
KK is stock owned company, so the important decision is made by majority vote.
In a GK, stakeholders also act as management member in order to run the company. If there are members of 2 or more, each member has one vote.

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