Japan company formation has been gaining in popularity in recent years as the country remains a key market for international business. Having among the largest economies in the world, the Japanese market is characterised by consumers who are attracted to innovation, high-end goods and services. For foreigners or non-Japanese residents, Godo Kaisha (the Japanese term for a limited liability company) has become the most common company type due to its considerable corporate flexibility.
The requirements for Japan company formation, specifically a Godo Kaisha, are straightforward and relatively simple to meet. The basic structure for a Godo Kaisha requires at least one investor and one shareholder, with no restrictions on the nationality of each position. In addition, each Godo Kaisha must have a registered address in Japan with a lease agreement to support the tenancy. There is no limit for the registered capital of a Godo Kaisha, however the capital registered will affect the credit of the company and the chance of success when opening a bank account. Lastly, unlike limited liability companies in other countries, Godo Kaisha has no requirements regarding the need for company directors or company secretaries.
Apart from adhering to its various tax requirements, a Japan Godo Kaisha’s is not subject to any annual maintenance requirements. A Godo Kaisha is simply required to keep its accounting books for ten years.
For a Godo Kaisha, the formation process typically takes around 4 to 5 weeks to complete. Please note that this timeframe excludes the opening of a bank account. However, this process may be extended depending on whether company formation requirements have been met. For instance, if all required documents have not been provided, it is not uncommon for the process to be extended!
Kabushiki Kaisha, otherwise known as a joint stock company, is the most popular company type besides a Godo Kaisha. Kabushiki Kaisha’s are the most expensive type of company to register and face stricter Japan company formation requirements than a Godo Kaisha. This company type is most appropriate for medium to large companies as they have the capability to raise additional capital through a variety of ways (selling shares, stock options, etc.). Despite its size, Godo Kaisha remains the company type of choice for small businesses due to its ease of incorporation and flexibility.
No! It is possible to nominate a representative who can help you carry out these procedures. While it is necessary to be present in Japan to open a Japanese bank account, you can involve a business partner or a professional service provider to receive the initial capital injection, and facilitate this step of the process on your behalf
