Stock Company vs. Godo Kaisha

Stock Company vs. Godo Kaisha

HOME Business Services Stock Company vs. Godo Kaisha

  Stock Company
(Kabushiki Kaisha)
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
Features Corporate Status Yes Yes
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

Additional Notes

  1. 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.
  2. If considering future business expansion, it may be easier to attract future investment with a KK.
  3. Conversion from a Godo Kaisha to a Stock Company is possible.

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