Company Type

Company Type

Name
Commercial Activity
Scope of Activities
Registation
Required Capital Amount
Estimated Setting Up Costs with Individual Incorporation Service Provider
Accounting
Corporate Tax
Employing Staff
Social Security (labor management)
Obtaining Visa
Company Name
Opening Corporate Bank Account
Fit Cases
Subsidiary Specific Fit Cases
Structure
Credibility
Governance
Minimum Number of People Required
Publication of Financial Statements
Directors Term of Office
Profit Sharing
Advantage
Disadvantage
Subsidiary (GK/LLC)
Allowed
Required
Minimum 1 yen (5 million yen to satisfy Investor / Business Manager visa requirements)
base cost about 110,000 JPY + service fee (300,000 ~ 700,000 JPY) + capital
Independent from the parent company
applicable
Possible
Mandatory
Possible
Free to decide
1. If you need a Japanese company, or prefer to avoid disclosing the information on the parent company (directors, amount of capital, etc.) or to have a separate accounting from the parent company. 2. If there will be a certain amount of turnover in Japan that would be likely to generate profit locally.
・If you budget is limited and the main clients/customers will most likely be individuals or foreign companies ・If you wish to divide the profit (dividends) with different percentage than the actual investment rate (for having partner(s) who will provide workforce, skills or know-how rather than contributing financially ・If you are the sole investor/manager of the company and wish to set up a company in the easiest and fastest way
Used by small and medium sized companies and functions more like a partnership
Newly introduced in 2006 to replace Yugen Kaisha. Still not very well known, but numbers of newly setup GK is increasing.
Owned and managed by partners. Necessary to invest (regardless of the amount) in order to manage the company.
At least one partner
Not necessary
No fixed term
Possible to decide freely without being bound to the investment rates
Useful when you have partners who can contribute by providing their knowledge, skills or network without making large financial contribution.
Less credible
Representative Office
Not Allowed
・Providing information to parent company in overseas, ・Advertising and publicity, ・Market research, ・Basic research and studies, ・Purchase and storage of assets for parent company.
Not Required
None
None (just need office space and name of the office)
Not required.
Not applicable (because no local profit, no capital, no commercial activities)
Possible
May be mandatory depending on case
Possible
Free to decide
1. If you don't know how the business will grow in the Japanese market so simply wish to do a market research so far 2. If there will be no sales in Japan. You only wish to send an employee to engage in the PR, advertisement or to contact Japanese business partners and do not wish to pay taxes in Japan.
Subsidiary (KK)
Allowed
Required
Minimum 1 yen (5 million yen to satisfy Investor / Business Manager visa requirements)
base cost about 250,000 JPY+ service fee (300,000 ~ 700,000 JPY) + capital
Independent from the parent company
applicable
Possible
Mandatory
Possible
Free to decide
1.If you need a Japanese company, or prefer to avoid disclosing the information on the parent company (directors, amount of capital, etc.) or to have a separate accounting from the parent company. 2.If there will be a certain amount of turnover in Japan that would be likely to generate profit locally.
・If you have sufficient funds for and will work regularly with Japanese companies. ・If you intend to have other investors or to transfer/sell shares in the future
Limited liability company by share
Widely known, the most credible form of company in Japan
Investors / owners (shareholders) and managers of the company (Directors) are separated (a shareholder can become a director at the same time)
At least one shareholder and one Representative Director (can be the same person)
Necessary
1 to 10 years with possibility of re-election (which needs to be registered)
Tied to the investment rate (number of shares held)
Easily recognized or trusted when working with big Japanese companies. Possible to appoint directors who don't hold shares.
More expensive when setting up
Branch Office
Allowed
Required
None
base cost about 150,000 yen + service fee (200,000 ~ 600,000 yen)
Aggregated to the parent company's accounting (tax declaration required in Japan)
applicable (based on the amount of profits generated by the branch office)
Possible
Mandatory
Possible
Same as parent comapny
If you need to have an officially registered legal entity in Japan or a Japanese bank account to be able to deal with Japanese clients, but do not wish to have a separate capital in Japan.