Japan, meaning Land of the Rising Sun, is an island nation in East Asia. In Asia, Japan is recognised as a leading centre for innovation. When measured on a Purchasing Power Parity (PPP) basis that adjusts for price differences, in 2011 Japan positioned itself as the third-largest economy in the world after China. Japan is a technologically advanced economy and gives businesses access to a huge population. The Greater Tokyo Area, which includes the capital city of Tokyo and several surrounding prefectures, is the largest metropolitan area in the world, with over 30 million residents. With the introduction of the new Japanese Corporate Law in 2006, it has become a lot easier to set up a company in Japan. CompanyRegistrationsWorldwide.com can assist you in setting up a company in this exciting country. Contact us for more information.

There are four types of company in Japan:

  • Godo Kaisha works in a similar way to what is known as LLC (limited liability company) in Western countries
  • Kabushiki Kaisha is run by shareholders with limited liability and by directors who are appointed by shareholders and is the most popular form of incorporation in Japan
  • Gomei Kaisha consists of partners with unlimited liability
  • Goshi Kaisha has at least one partner with unlimited liability and other partner(s) with limited liability.
    • Newly setting up a Gomei Kaisha or Goshi Kaisha are not popular options since they need to include partners with unlimited liability.


Setting up a Godo Kaisha in Japan – what are the main features?

  • It is necessary to invest (no matter how small the amount may be) in order to run the company
  • One partner needs to be a resident in Japan
  • There is no fixed term for directors
  • Possible to decide freely how to share the profits between partners, without being tied to investment rates. Useful when partners would like to join without making a huge financial contribution but who can contribute by providing knowledge, skills or network


Setting up a Kabushiki Kaisha in Japan – what are the main features?

  • It is now possible to establish a Kabushiki Kaisha (Limited Liability Company) with any amount of capital and with only one director
  • Those who invest (shareholders) and those who run the company (directors) are separated, although it is possible for a shareholder to become a director at the same time.
  • A shareholder and a Representative Director (can be the same person). The Representative Director needs to be a resident in Japan.
  • Directors term of office is 1 to 10 years with possibility of re-election
  • Useful when you need to have directors who won’t invest, or investors who will not be involved in the day-to-day management


CompanyRegistrationsWorldwide.com can provide you with a professional company formation service for setting up your company in Japan.