Investors who wish to start a business in Japan can choose between several types of companies, according to the size of the business, the capital and the plans for future expansion.
The team at our law firm in Japan can help foreign investors open any type of company. Because the language barrier can resent certain issues when doing business in the country, it is strongly advisable to seek proper guidance and advice before making a new business investment.
The main business entity types in Japan
Our Japanese lawyers highlight the main characteristics of the available business forms in Japan:
| Type of Company | Details |
| Limited liability company (Godo Kaisha) | The shareholders are only liable to the extent of their investment and it is suitable for small or medium businesses; the start-up costs will include the minimum share capital as well as other fees for registration. |
| Stock company (Kabushiki Kaisha) | This is the most used business form in the country, the same limited liability principle applies and a higher minimum share capital is required; has at least one shareholder and one director (they can be the same person); one of our attorneys in Japan can give you more details about this popular business form. |
| General partnership (Gomei Kaisha) | All of the partners who open this type of business structure bear unlimited liability. |
| Limited partnership (Goshi Kaisha) | There are two types of partners in this case and only the general partner will have unlimited liability. |
General requirements for company formation in Japan
The companies, the limited liability company, and the stock company are the preferred business forms because of the limited liability they offer to shareholders. These two business structures are different in terms of governance and the requirements for filing and reporting. For example, the requirements for the Godo Kaisha are lighter because there is no necessity to publish the financial statements. for investors who wish to open this type of company, a specialized Small and Medium Enterprise Agency is in place in Japan that offers support for certain types of business activities. One of our lawyers can help you with more information.
Our law firm in Japan offers complete company incorporation services and can help investors with more detailed information about the company types as well as the actual registration process. Do you want to open a company in another country, such as Bahrain? We can put you in contact with our partners.
Contact us for complete company formation services in Japan irrespective of the chosen type of company.