Stock Company vs. Godo Kaisha
|Setup||Incorporation Expenses (Does Not Include Professional Fees)||Approximately 250,000 yen||Approximately 100,000 yen|
|Registration Tax: Capital amount multiplied by 0.7% (minimum 150,000 yen)
Notarization of Articles of Incorporation: approximately 50,000 yen
|Registration Tax: Capital amount multiplied by 0.7% (minimum 60,000 yen)
Notarization of Articles of Incorporation: not necessary
|Incorporation Procedures||Since notarization of the Articles of Incorporation is required, procedures are somewhat more complex||Since notarization of the Articles of Incorporation is not required, procedures are somewhat simpler|
|Time Required||Normally 1 to 2 months||Normally 1 to 2 months|
|Investor Liability||Limited liability||Limited liability|
|(Limited to the amount invested)||(Limited to the amount invested)|
|Recognition||Most common type of company in Japan, highly recognized due to its long history in the Japanese corporate world||Relatively new type of corporate entity (introduced in 2006) and thus generally less recognized|
|Not an issue depending on the industry type|
|Minimum Capital||1 yen||1 yen|
|Minimum Persons Required||Can be incorporated by one (1) person||Can be incorporated by one (1) person|
|When the investor is a company (promoter), in addition, one person is required as a Director||When the investor is a company (member), in addition, one person is required as an operation manager|
|Articles of Incorporation||Corporate governance rules set in the Articles of Incorporation are limited to the regulations in the Companies Act||Relatively more relaxed as compared with a KK (distribution of profits and other matters may be freely decided)|
|On-Going Requirements (Under the Companies Act)||・Annually: Annual General Meeting of Shareholders, public notification of financial statements||・Annually: none|
|・Term of Office of officers: Re-appoinment of officers, registration||・As officers do not have Term of Office limitations, re-appointment not necessary|
- Both entities have corporate status and the liability of investors is limited to the amount invested, thus for small sized businesses, there is little difference.
- If considering future business expansion, it may be easier to attract future investment with a KK.
- Conversion from a Godo Kaisha to a Stock Company is possible.
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