Most common business entity in Japan
The Godo Kaisha (GK) / Kabushiki Kaisha (KK) is the standard choice for most small- to mid-size businesses in Japan. Like a US LLC, it provides limited liability protection separated from the owners' personal assets. GK (LLC-like) is faster and cheaper than KK. GK filing JPY 60k stamp + JPY 90k registration tax.
The full menu of Japan business structures
| Structure | Liability | Tax | Best for |
|---|---|---|---|
| Godo Kaisha (GK) / Kabushiki Kaisha (KK) | Limited | 23.2% corporate | Most operating businesses |
| Sole proprietor / self-employed | Unlimited personal | Personal income tax rates | Freelancers, one-person services |
| Partnership | Joint and several | Pass-through to partners | Professional services (law, accounting) |
| Branch of foreign company | Parent company liability | 23.2% on Japan-source profits | Foreign companies entering Japan market |
| Public limited company | Limited | Same as Godo Kaisha (GK) / Kabushiki Kaisha (KK) but stricter | Companies preparing for listing |
Which one should you pick?
- Freelance or one-person service in Japan? Self-employed structure if simple, Godo Kaisha (GK) / Kabushiki Kaisha (KK) if you want liability protection.
- Software / e-commerce / agency? Godo Kaisha (GK) / Kabushiki Kaisha (KK) — standard, scalable.
- Operating an existing foreign company in Japan? Branch (simpler) or subsidiary Godo Kaisha (GK) / Kabushiki Kaisha (KK) (more substance).
- Planning to raise venture capital? Confirm investors accept Japan entities. Many require a US Delaware C-Corp flip — see US company formation.
- Holding company for IP or other companies? Godo Kaisha (GK) / Kabushiki Kaisha (KK) with minimal substance requirements.
The Godo Kaisha (GK) / Kabushiki Kaisha (KK) in one paragraph
Godo Kaisha (GK) / Kabushiki Kaisha (KK) is Japan's primary limited liability vehicle. Minimum paid-up capital: nominal. Headline corporate tax: 23.2%. National 23.2% + local resident + enterprise = ~30% effective for large; ~22% SME.. Banking accessibility: 9/10. Privacy: 5/10 (UBO non-public). Remote formation: in-person typical. Processing time: 14 business days.
For US comparison, see Japan vs USA. For non-resident formation specifics, see forming a Japan company as a non-resident.