Introduction
Your choice of entity impacts taxes, investor perception, and management flexibility. Let’s compare Japan’s main business structures.
Kabushiki Kaisha (KK)
- Resembles a corporation
- Highly respected and ideal for funding
- Requires board resolutions and more formal governance
Godo Kaisha (GK)
- Similar to a limited liability company (LLC)
- Cheaper and easier to manage
- Popular among startups and tech firms
Other Entity Types
- Branch Office: extension of a foreign company
- Representative Office: limited to non-commercial activities
Registration Process
- Prepare incorporation documents
- Notarize (for KK)
- File at the Legal Affairs Bureau
- Register for taxes and social insurance
Tax and Legal Considerations
Both KK and GK pay corporate and local taxes. KKs often enjoy greater investor confidence; GKs offer simpler management.
Internal Link Suggestions:
- Link to Blog #1 (“Start a Business in Japan in 2025”) for setup overview.
- Link to Blog #4 (“Open a Corporate Bank Account in Japan”) under “Registration Process.”
M
Written by
Mei Nakamura
Director, Japan Strategy · Deebo Tokyo
Deebo is an international expansion and cross-border ecommerce agency, headquartered in Tokyo, working with foreign brands across Japan, APAC, and 40+ markets worldwide.