TOML

Japanese Business Entity Types - TOML

Japanese business entity types include four forms under the Companies Act: stock companies (Kabushiki Kaisha), limited liability companies (Godo Kaisha), limited partnerships (Goshi Kaisha), and general partnerships (Gomei Kaisha), plus Limited Liability Partnerships (LLP) under the LLP Act. Each form has distinct characteristics regarding establishment requirements, liability scope, fundraising methods, and tax treatment, chosen according to business scale and objectives. Stock companies are most common with high credibility, while LLCs offer lower establishment costs and flexible management.

Companies Act business entity stock company LLC LLP corporation startup

[[items]]
code = "KK"
slug = "kabushiki-kaisha"
name = "Stock Company (Kabushiki Kaisha)"
description = "The most common business entity in Japan that can raise funds by issuing stocks."
canGoPublic = true
establishmentCost = "Approx. 170,000-250,000 JPY"
legalBasis = "Companies Act"
legalPersonality = true
liabilityType = "Limited Liability"
minMembers = 1

[[items]]
code = "GK"
slug = "godo-kaisha"
name = "Limited Liability Company (Godo Kaisha / LLC)"
description = "A flexible business entity established in the 2006 Companies Act reform where investors are also managers."
canGoPublic = false
establishmentCost = "Approx. 60,000-100,000 JPY"
legalBasis = "Companies Act"
legalPersonality = true
liabilityType = "Limited Liability"
minMembers = 1

[[items]]
code = "LLP"
slug = "llp"
name = "Limited Liability Partnership (LLP)"
description = "A partnership form without legal personality but with pass-through taxation."
canGoPublic = false
establishmentCost = "Approx. 60,000 JPY"
legalBasis = "Limited Liability Partnership Act"
legalPersonality = false
liabilityType = "Limited Liability"
minMembers = 2

[[items]]
code = "GK-KS"
slug = "goshi-kaisha"
name = "Limited Partnership (Goshi Kaisha)"
description = "A mixed liability business entity composed of unlimited and limited liability members."
canGoPublic = false
establishmentCost = "Approx. 60,000 JPY"
legalBasis = "Companies Act"
legalPersonality = true
liabilityType = "Mixed Liability (Unlimited + Limited)"
minMembers = 2

[[items]]
code = "GM-KS"
slug = "gomei-kaisha"
name = "General Partnership (Gomei Kaisha)"
description = "The oldest business entity in Japan where all members have unlimited liability."
canGoPublic = false
establishmentCost = "Approx. 60,000 JPY"
legalBasis = "Companies Act"
legalPersonality = true
liabilityType = "Unlimited Liability"
minMembers = 2