Incorporate in Japan

Kabushiki Kaisha (KK)

Kabushiki Kaisha is similar to the joint stock corporation in the U.S., and often used in setting up a business in Japan. Large scale corporations always choose KK because a variety of methods are available to gather investment (for example, stock options and convertible bonds). The representative elements of KK are as follows:

  • ・Head office: Should be in Japan
  • ・Capital: JPY1 or more (formerly, the amount of capital was limited to JPY10,000,000 or more, but there is no limit since May 2006)
  • ・Business purpose: A company should register specific business purposes in Japan, even if the parent company is allowed to do everything that is legally allowed in its country.
  • ・Officers: At least one director is required for KK. In case a KK intends to form a board of directors, at least three directors and one auditor are necessary. One or more of the directors should be representative directors, and at least one representative director should be a resident in Japan.

Flow of procedures for incorporating Kabushiki Kaisha (Incorporation without Offering)

Determine the basic matters for incorporation (Company name, business purposes, location of head office, directors, auditors, etc.)

Search for the same company name. If there is a company with the same name and address beside yours, you cannot establish a company at that place.

Confirmation if prior notification is required under the Foreign Exchange Law

Notarization of the Articles of Incorporation

Payment of capital

Receive a certificate of holding money issued by bank (some exeptions apply)

Lodging the application with the Legal Affairs Bureau for commercial registration

Completion of registration; acquisition of certificate of registration and certificate of company seal

Filing documents to relative authorities

Time required: about one month if prior notification to the Bank of Japan is unnecessary.