Forms of companies

When you start a company in Japan, you need to decide the form of your company.

We have three major company forms in this case, Kabushiki-kaisha , godo-kaisha and gaikoku-kaisha.( Kaisha is pronounced as gaisha.) I shall explain the character of each form here.

Types of Company Forms

Kabushiki-kaisha / Stock Companies

Kabushiki-kaisha is often abbreviated as KK, Investors hold stocks depend on the level of their investment.  Decision-making power is decided by the numbers of stocks each stockholder has. This is the most popular company style in Japan.

Godo-kaisha / Membership company

Investors have equity interest. Each member has the same power of decision regardless of the amount of investment essentially. But members can decide how to share profits by articles of incorporation freely.  Though little expense is required to establish this, correspondingly, its credit is said to be low.

Gaikoku-kaisha / Foreign Company

>If you have a company in your country, you can register this company in Japan. It is recognized as a branch.

Which form is better?

The form you should depends on the case.
If you want to do business with major companies, you should become a Kabushiki-kaisha. But if you open a small restaurant by yourself, the Kabushiki-kaisha may overkill. You can use your money for a commercial. If you often exchange items between Japan and the affiliated company in your country. Gaikoku-kaisha can be an option.

You should consult with a specialist before establishing the company.

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