{"id":466,"date":"2012-10-25T14:54:01","date_gmt":"2012-10-25T05:54:01","guid":{"rendered":"http:\/\/tk-tax-accounting.com\/?p=466"},"modified":"2024-05-25T02:19:49","modified_gmt":"2024-05-25T02:19:49","slug":"english-starting-a-business-in-japan-business-operation","status":"publish","type":"post","link":"https:\/\/www.tkpartners.or.jp\/en\/english-starting-a-business-in-japan-business-operation\/","title":{"rendered":"Starting a business in Japan – Business operation"},"content":{"rendered":"

Case 11\u00a0
\n<Question>
\nForeign companies generally engage in business operations by establishing\u00a0a subsidiary company, or limited liability partnership though, could you tell me about business operation of each type of companies in Japan?
\n<Answer>
\nThe legal differences between each of these are summarized in the following table.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\u00a0<\/p>\n<\/td>\n

Joint-stock company<\/p>\n

(K.K.)<\/td>\n

Limited liability<\/p>\n

company<\/td>\n

Limited partnership company\u3000\u3000\u3000\u3000\u3000\u3000<\/td>\n<\/tr>\n
Capital<\/td>\n1 yen or more<\/td>\n1 yen or more<\/td>\n2 yen or more (if 2 partners)<\/td>\n<\/tr>\n
Number of investors<\/td>\n1 or more<\/td>\n1 or more<\/td>\n2 or more<\/td>\n<\/tr>\n
Liablity of equity participants\/parent company toward creditors<\/td>\nLimited to amount of equity participation<\/td>\nLimited to amount of equity participation<\/td>\nLimited to amount of equity participation<\/td>\n<\/tr>\n
Incorporation formality<\/td>\nRequire great care compared to other companies<\/td>\nRelatively easier<\/td>\nRelatively easier<\/td>\n<\/tr>\n
Promotion expense<\/td>\nAppointment of 1 or more required. Executive officer with right of representation if no representative director is appointed.<\/td>\nNo legally stipulated minimum. In principle, all members are executive officers, but a representative member may be appointed<\/td>\nNo legally stipulated minimum. All partners are executive officers<\/td>\n<\/tr>\n
Top legislative body<\/td>\nShareholders meeting<\/td>\nGeneral meeting of members<\/td>\nGeneral meeting of members<\/td>\n<\/tr>\n
Directors<\/td>\nNo<\/td>\nAppointment of 1 or more required. Executive officer with right of representation if no representative director is appointed.<\/td>\nNo legally stipulated minimum. In principle, all members are executive officers, but a representative member may be appointed<\/td>\nNo legally stipulated minimum. All partners are executive officers<\/td>\n<\/tr>\n
Term<\/td>\n2 years in principle. Extendable up to 10 years.<\/td>\nIndefinite<\/td>\nIndefinite<\/td>\n<\/tr>\n
Company auditor<\/td>\nIn case of no board of meeting, company auditor is not necessary.<\/td>\n\uff0d<\/td>\n\uff0d<\/td>\n<\/tr>\n
Statutory auditor<\/p>\n

(Accounting auditor)<\/td>\n

The amount of capital is more than JPY 500 million, or the amount of liabilities is more than JPY 20 billion, statutory auditor is necessary.<\/td>\n\uff0d<\/td>\n\uff0d<\/td>\n<\/tr>\n
Entity conversion to K.K.<\/td>\n\uff0d<\/td>\nPossible<\/td>\nPossible<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Traditionally the most usual form of company is that of Kabushiki-gaisha (K.K.\/joint-stock company). Recently however, the LLC system, introduced from abroad and most likely familiar to people coming from the United States has become increasingly known.<\/p>\n

Making the right choice on what form your company should take is of elevated importance, which is why it is recommended that you consult with a Japanese judicial scrivener, tax\u00a0accountant or CPA\u00a0before making your next step.<\/p>\n

 <\/p>\n

Reference<\/span>
\nStarting a business in Japan – Blue tax return for Income Tax\u00a0 11\/10\/2012<\/a>
\nStarting a business in Japan – Opening bank accounts and borrowing money\u00a0 28\/09\/2012<\/a>
\nStarting a business in Japan – Tax merit (a corporateor an individual owned business?)\u00a0 10\/09\/2012<\/a>
\nStarting a business in Japan – Consumption tax\u00a0 03\/09\/2012<\/a>
\nStarting a business in Japan\u00a0 18\/08\/2012<\/a><\/p>\n

 <\/p>\n

By Certified Public Accountant (CPA) & Tax Accountant, Koji Takahashi
\n<\/em>Tokyo & Yokohama<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Case 11\u00a0 <Question> Foreign companies generally engage in business operations by establishing\u00a0a subsidiary company, or limited liability partnership though, could you tell me about business operation of each type of…<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-466","post","type-post","status-publish","format-standard","category-news-2"],"yoast_head":"\nStarting a business in Japan - Business operation - TK Partners<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tkpartners.or.jp\/en\/english-starting-a-business-in-japan-business-operation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Starting a business in Japan - 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